STORE LAYOUT

A store layout is the design in which a store's interior is set up. Store layout is well thought out to
provide the best exposure possible. It is designed to create an attractive image for consumers. It
describes the overall look and feel of the interior of a retail store, including the placement of
fixtures and products within the store. It is an important part of implementing retail store
strategy. Effective layouts are designed to expose customers to the most products possible
giveamount of floor space available.
A well-planned retail store layout allows a retailer to maximize the sales for each square foot of
the allocated selling space within the store. Store layouts generally show the size and location of
each department, any permanent structures, fixture locations and customer traffic patterns. Each
floor plan and store layout will depend on the type of products sold, the building location and
how much the business can afford to put into the overall store design.

Types of store layout

Free flow layout:

These stores do not really have a fixed arrangements, the irregular

pattern leads to greater flexibility for both fixtures and shoppers. However if too many fixtures
are used it can create an overcrowded effect. Some fashion store chains use a free flow layout,
inorder to create an image of the lifestyle that corresponds to the garments being sold.

ADVANTAGES

Allowance for browsing and wandering freely

Increased impulse purchases
Visual appeal
Flexibility

DISADVANTAGES

Loitering encouraged
Possible confusion
Waste of floor space
Cost
Difficulty of cleaning

LOOP LAYOUT
Loop Layout is also known as Racetrack layout. It is a type of store layout in which a major
customer aisle begins at the entrance, loops through the store, usually in the shape of a circle,
square, or rectangle, and then returns the customer the front of the store.

Advantages
It guides customer round a large area
It exposes large amounts of merchandise
Disadvantages
Customers cannot focus on intendedpurchase
Need for internal walls/island screens
GRID LAYOUT

These tend to have defined aisles and space for products. A customer tends to move around in an
ordered way e.g like a supermarket or convenience
store. Signs are often overhead to help customers know where the products are. They will also
use end of aisles and special displays to encourage impulse purchasing

Advantages
Low cost
Customer familiarity
Merchandise exposure
Ease of cleaning
Simplified security
Possibility of self-service
Disadvantages
Plain and uninteresting
Limited browsing
Stimulation of rushed shopping behavior
Limited creativity in decor

Spine Layout:
Spine Layout is a type of store layout in which a single main aisle

runs from the front to the back of the store, transporting customers in both
directions, and where on either side of this spine, merchandise departments
using either a free-flow or grid pattern branch off toward the back aisle walls.

Advantage
Retailer can utilize the benefits of free flow,grid
and loop systems.

Disadvantage
Retailer may need to vary the shape of central
walk way & increase expenditure on fixtures &
fittings
RETAIL LOCATION
A retailer has to choose amongalternate types of retail locations available. It may locate in an
isolated placandpull the customer to the store on its own strength, such as a small grocery store
orpaan shop in a colony which attracts the customers staying close by. Typically a storelocation
may be:
1. Freestanding /Isolated store
2. Part of Business District/Centres (Unplanned Business Districts)
3. Part of a Shopping Centre (Planned Shopping Centres)

1. Freestanding /Isolated store

Advantages:

Convenience
High traffic and visibility
Modest occupancy cost
Separation from competition
Few restrictions

DISADVANTAGES
No foot traffic
No drawing power

CENTRAL BUSINESS DISTRICTS

A central business district (CBD) is the commercial and business centre of a city.
central business district located away from its commercial or cultural city centre or downtown.
The CBD usually has an urban density higher than the surrounding districts of the city, and is
often the location of the tallest buildings in the city.

ADVANTAGES
Hub for public transportation
Draws people into areas during business hours
Pedestrian traffic
Residents
DISADVANTAGES
High security required
Shoplifting
Parking is poor
Evenings and weekends are slow

SHOPPING CENTERS

A shopping center is a group of retail and other commercial establishments that is

planned, developed, owned and managed as a single property, typically with on-site
parking provided. The center's size and orientation are generally determined by the
market characteristics of the trade area served by the center.

Shopping Center Management Controls:

Parking
Security
Parking lot lighting
Outdoor signage
Advertising
Special events for customers
ADVANTAGES
Convenient locations
Easy parking

 Low occupancy costs

DISADVANTAGES
Limited trade area
Lack of entertainment
No protection from weather
TRADE AREA
A stores trade area, also called its catchment, can be likened to its sphere of influence. It
measures how far its customer base extends.. In fact, if all infinitesimal probabilities be included
in defining the trade area, it would include the entire globe, and even the universe if the one in a
trillion trillion probability of a spaceship landing in front of that Pune store be also considered.
Hence, a trade area definition is restricted to a bulk fraction of the (literally) universe of
customers that a store attracts. Typically, this varies from 60-80%.
Why a retailer needs to know its trade area is asking why a politician needs to know the
constituents of the district he contests elections from. Just like a politician cannot change the
demographics of his constituents, a store cannot change the demographic facts of its site. It
might choose to ignore it only in a totalitarian state where supplies and competition are both
artificially kept scarce. It might shape the habits of its customer base, slowly and incrementally,
but thats another story, and merely nuanced adjustments to a set reality shaped by
metanarratives of geography, history and sociology.
To be successful, a retailer has to become the store that its community needs and a successful
trade area analysis defines exactly what this community is and what it needs, explicitly and
implicitly.
Trade area analysis provides the foundation for:

Understanding the geographic extent and characteristics of store patronage.

Spatially assessing performance.
Performing competitive analysis.
Evaluating market penetration and market gap analysis.
Target marketing.

 Merchandising.
Identifying/quantifying effects of cannibalization.
Developing and exploiting demographic profiles.
Site suitability and site selection studies.