Retail Merchandising and Store Layout Strategies
Facing and Linear Minimum
Facing: The area occupied by a unit of product in front of a bookshelf or exhibitor.
Stock Presentation: The total number of product units located in several rows on a shelf’s depth.
Linear minimum: The minimum space required on a shelf for a product to be perceived by the consumer. To determine this, we must consider:
- A) The required surface area for each product.
- B) The capacity of the exhibitor.
- C) The minimum space required for the product to be perceived by the consumer.
- D) The rate of sales: Products that are sold more frequently should have a larger stock presentation.
- E) Safety stock: It is necessary to maintain a quantity of goods in excess of anticipated demand to prevent a sudden increase in demand or a delay in the replenishment of stock, which could produce a stockout.
Placement of Product Families
We call sections the administrative business units and accounting. Each section is divided into families, consisting of items that meet the same need, and these can be divided into subfamilies.
Criteria for the allocation of space:
- A) According to the sales figure.
- B) The gross profit.
- C) The rotation: In this case, the criterion of replacement.
Standards for an Adequate Implementation
We establish two phases:
1st Phase: Development of the scheme in writing
Specifying:
- A) Location of families and subfamilies.
- B) Space allocated to each product family.
- C) Minimum linear space for each reference.
2nd Phase: Implementation
Several steps:
- A) Preparing a sample that contains one to three units of each product.
- B) Creating the front, considering:
- Vertical stacking.
- Making the most of the space.
- “Hook” articles located on the lower level, forcing consumers to lower their eyes and view the entire linear.
- Merging the “hook” articles with others less attractive to the consumer but more profitable for the entrepreneur.
- Locating the most profitable items on the best linear levels.
- The superior level should be used to place products with average returns.
- Items must be combined to produce a linear harmony.
- It is also necessary to alternate brands from the distributor.
- C) Filling the shelves in depth, taking into account that:
- The alignment of products in vertical and horizontal rows must be accurate.
- The stacking must take into account the characteristics of the products.
- The arrangement of the shelves can be set to the same level, which helps highlight the different kinds of products, or can be set at different levels.
- D) Identification of families and subfamilies of articles with signs and price tags on the shelves.
Profitability Index of the Linear
Methods to calculate performance:
- A) Turnover rate: The number of times the stock is partly broken or sold in a given period. The larger the movement, the better, and therefore, the higher the profitability.
- B) Index of the linear: Determines whether a product is assigned the appropriate linear length for its turnover.
- C) Productivity of the linear: Indicates the relationship between gross profit and linear space occupied.
- D) Linear Performance Index.
- E) Return ratio: Measures the percentage contributed by each reference to overall profitability.
Location of Establishment
The first factor to take into account, which may make an establishment profitable or not, is its location.
The choice of location requires economic studies to provide information on potential customers and their potential. Having chosen the core, other information must be taken into account, such as natural places of transit, facilities and nearby buildings, the urban scheme of the area, the price of land, and the perimeter of business attraction.
Façade
The face of the establishment is the first thing the consumer sees; hence its strategic importance.
The exterior of the store is key, as it should invite customers in. The controllable element is the first point of sale, and therefore, everything must be taken care of, down to the details. The facade is an active part in creating the store’s image.
Inside the front are different elements: the label, entry, and showcase.
Features from the outside:
- A) It should be clean, neat, and well-painted.
- B) It must have a label that identifies and personalizes the store.
- C) Because what really sells is the interior, the facade must be open, with large windows and doors to allow the animation to be seen inside.
Input
The physical passage that allows access to the facility. For entry to be attractive and provide maximum ease of access, the following recommendations can be followed:
- A) The access doors must always be open.
- B) Other factors that impede passage should be removed.
- C) The doors should be transparent so you can see inside the store.
- D) They must be wide.
In the planning of the facade, care must be taken to maximize the number and location of entrances. They must be placed in the direction of traffic. A very important part of the entrance is the inscription: It is the foreign element that allows the identification and location of the establishment. It should contain the full name or business name.
Showcases
It is the most important element in traditional stores and for non-food purchases and behavior-oriented fun and entertainment. Its main function is to attract customers and induce the desire to purchase. It must be conceived as advertising that conveys a message. Other functions:
- A) To attract buyers through visual stimulation.
- B) To retain the client.
- C) To increase customer loyalty.
- D) To meet the competition.
- E) To help create a self-image.
- F) To improve relationships with suppliers.
- G) To encourage, identifying the vendors with the establishment.
The showcase is an important advertising medium because:
- A) It is an element of publicity at the point of sale.
- B) You can see how the products really are.
- C) It constitutes an important visual appeal.
- D) It serves as a reminder of other messages transmitted.
To fulfill these missions, it should:
- A) Be great.
- B) Be revealing.
- C) Not take up space within the store.
- D) Show a few items.
- E) Be renewed regularly.