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    Retailing

    Uploaded by

    Carlota Bardají Felez
    Retailers strategically design store layouts to maximize sales. They place high-profit items at eye-level so customers are more likely to see and purchase them. Low-cost and less profitable items are placed on lower or higher shelves where they are less visible. Stores also place essential items like bread and milk at the back of stores so customers pass through other aisles on their way and are exposed to tempting impulse purchases. Techniques like end-caps and aisle layouts are used to showcase special offers and products to increase unplanned spending. Overall, store layouts are carefully planned to influence customer behavior and promote more browsing and impulse buying.

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    © All Rights Reserved
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    Retailing

    Uploaded by

    Carlota Bardají Felez
    22 views6 pages
    Retailers strategically design store layouts to maximize sales. They place high-profit items at eye-level so customers are more likely to see and purchase them. Low-cost and less profitable items are placed on lower or higher shelves where they are less visible. Stores also place essential items like bread and milk at the back of stores so customers pass through other aisles on their way and are exposed to tempting impulse purchases. Techniques like end-caps and aisle layouts are used to showcase special offers and products to increase unplanned spending. Overall, store layouts are carefully planned to influence customer behavior and promote more browsing and impulse buying.

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    1. Retailing

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    Retailers strategically design store layouts to maximize sales. They place high-profit items at eye-level so customers are more likely to see and purchase them. Low-cost and less profitable items are placed on lower or higher shelves where they are less visible. Stores also place essential items like bread and milk at the back of stores so customers pass through other aisles on their way and are exposed to tempting impulse purchases. Techniques like end-caps and aisle layouts are used to showcase special offers and products to increase unplanned spending. Overall, store layouts are carefully planned to influence customer behavior and promote more browsing and impulse buying.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    22 views6 pages

    Retailing

    Uploaded by

    Carlota Bardají Felez
    Retailers strategically design store layouts to maximize sales. They place high-profit items at eye-level so customers are more likely to see and purchase them. Low-cost and less profitable items are placed on lower or higher shelves where they are less visible. Stores also place essential items like bread and milk at the back of stores so customers pass through other aisles on their way and are exposed to tempting impulse purchases. Techniques like end-caps and aisle layouts are used to showcase special offers and products to increase unplanned spending. Overall, store layouts are carefully planned to influence customer behavior and promote more browsing and impulse buying.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 6

    UIC Business Administration: Retailing

    Discuss the following questions

    What is retailing? How is the retail business doing at


    the moment in this country? Are any retailers doing
    particularly well?

    What is the difference between a shop, a store, an


    outlet?

    What is the advantage of department stores? What


    are some popular ones in this country?

    Do you like shopping in shopping centres, malls, hypermarkets, superstores, retail


    parks? Why (not)?

    What is a retail chain? Can you think of any?

    Matching business models

    1. C2C a. Businesses that sell products or sell services to other


    businesses.

    2. B2C b. Businesses that sell products or provide services to


    individuals.

    3. B2B c. Individuals that sell products to other individuals.

    4. B2B2C d. Third party vendors that sell a company’s products


    or services to consumers.

    1
    UIC Business Administration: Retailing

    Research a company below and talk about it.

    What do you know about each of them? Choose one of the videos and watch it and
    explain it to your group of 4.

    Where they are from When they were established

    What they are known for What makes them different than the competition

    Starbucks https://www.youtube.com/watch?v=1-OJX1rwnl8

    IKEA https://www.youtube.com/watch?v=tkfq__rdoD0

    Sephora https://www.youtube.com/watch?v=Y9b5HBSpbqs

    Chic-fil-A https://www.youtube.com/watch?v=grkHcEyZu04

    Imagine you are going to start up a retail store. What sort of store would it be?

    What sort of techniques would you use to make sure people see all the products you
    have to offer?

    2
    UIC Business Administration: Retailing

    Look at the following store layout. Where would you expect to find these things,
    based on what you have read and your own experiences?
    store entrance fresh fruit and vegetables meat
    milk cereal (cheap and brand name) sugar
    eggs

    Why do you think they are placed in these areas? Discuss with a partner before you
    find out more.

    Source: Tullis, Graham, and Tonya Trappe. New Insights into Business. Essex: Pearson Education Ltd., 2000: 26-32.

    Video: The Gruen Effect

    3
    UIC Business Administration: Retailing

    The Gruen effect also known as the Gruen Transfer is named after Austrian architect Victor
    Gruen who came up with a layout for shopping mall design which took the customers through
    the whole store so they would see the maximum amount of products. Upon entry, customers
    are surrounded by an intentionally confusing layout and lose track of their original intentions,
    which make them more susceptible to more impulse shopping. Watch the video about IKEA
    and the Gruen transfer:

    Answer these questions:

    https://www.youtube.com/watch?v=WYKUJgMRQ7A

    1. What percentage of our purchases (shopping) is not planned for?

    a. 25% b. 40% c. 50% d. 60%

    2. The layout of a store will affect ______________________ which will lead to impulse
    buys.

    3. Victor Gruen used _____________ and ______________ to showcase products in window


    displays.

    4. The Gruen effect has led us from shopping to get something to shopping for shopping’s
    ______________.

    5. IKEA employee, Richard La Graauw, says that 20% of our buying decisions are based on
    _____________ and ________________.

    And 80% is based on ____________________.

    6. Layouts:

     Grid layouts emphasize: _________________.


     Freeform layouts encourage _________________ which can take customers see more
    parts of the store.
     Racetrack designs create a _________________ that exposes customers to a certain
    path of a product.
     IKEA uses a ___________ ____________ through a maze of product displays.

    7. ______________ is used to lead customers to different areas in the store

    8. Customers normally visit _______________ of a retailer’s floor area

    9. What sort of technology is used to measure what in shops to make customers see and buy
    more?

    Read what Karl McKeever, a visual merchandising consultant, has to say about the
    layout of the grocery store.

    They have ways of making you spend

    4
    UIC Business Administration: Retailing

    hoppers need to be familiar with the tricks used to manipulate them.


    Supermarkets' key weapon is the use of the eye-level display. Experiments have shown that when we
    walk down an aisle, we often look only at the shelves that are level with our eyes. That means that
    items with the biggest profit margins go at eye-level, while the cheap stuff goes on the floor. If you
    want value brands, you'll find them eventually. But you won't buy them on impulse.
    Trick number two is the position of the bread and milk – the "destination goods". They are placed at
    the back and the middle to ensure you walk past as many other aisles and ends as possible. Stores are
    keen for you to walk past clothes, gifts and gadgets – the most profitable lines. The most profitable
    impulse buys and special offers are placed on aisle ends – and shops are designed to ensure you pass
    as many ends as possible.

    5
    UIC Business Administration: Retailing

    Supermarket design has changed in the past few years. Many now break up the aisles into two
    (doubling the number of aisle ends) and put the groceries at the rear of the store, forcing you to walk
    through the more profitable non-food areas. But fresh fruit and vegetables are almost always at the
    front door. That’s not just to make the store seem fresh. Fruit and vegetables look healthier and
    fresher in natural light. In contrast, meat and fish need a clean white light, otherwise they look tired.

    Video 2: How the layouts of grocery stores are secretly designed to make you spend
    more money -----Starts at .24

    1. Where are store entrances and checkouts (the cash till or registers) in the US? In the UK?
    Why?

    2. How much do Americans spend each trip to the store?

    3. What are the 3 items that consumers buy every time they go to the grocery story? Where
    are they placed according to the video?

    4. What about the most popular items? Where are they placed?

    5. Cereal

    a. Where are the most profitable cereals placed? Why?

    b. The eye level of children?

    c. Generic brand cereals or bulk?

    d. Healthy or small brand cereals?

    6. What is said about end-caps? What are they used for?

    7. What was done in Sweden to curb the sale of alcohol?

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