Effective Space Management and Planning

EFFECTIVE
SPACE
MANAGEMENT
AND PLANNING
BY SHELJA CHOUHAN
ROLL NO. 5
WHAT IS SPACE PLANNING?
 The process of deciding how a space can be

most efficiently and effectively used; based
on a potential tenant's operational and
aesthetic requirements and financial
limitations
 Arranging fixtures, furnishings and
equipment within a given space taking into
account traffic flow, furniture scale, use of
occupants , electrical, etc
WHY SPACE PLANNING?
 Retailers can drive top line sales, and achieve good overall
returns on their invested amount of capital
Effective planning of the retail space and managing it in a right

way is the key factor in the lifecycle of merchandise planning
and execution. More retailers are adopting the fact that space
management is an integral part of any retail business
 Adequate space planning techniques enable the retailer to have

end-to-end control of merchandise
 This display will attract more customers, minimizes stock outs

and operating costs, enables inventory productivity, and
increases the financial performance and ultimately more profits
for the retail outlet
SPACE ALLOCATION TOOLS
 Space allocation tools are available that enables retailers to
determine the optimum space for fixtures, and merchandise
based on the analysis of product placement, usage and
performance. Space allotment is done hierarchically with
both top and bottom views of performance. A detailed
planning for space allocation can be done through any of
the following ways:
 Exact floor plans can be obtained through CAD (computer
aided design)drawing with precise measurements
 Appropriate square footage can be assigned for each
merchandise category
 Detailed plan grams can be prepared striking a happy
balance of available space, and merchandise
 A detailed plan can be prepared, considering detailed
fixture, and component dimensions
INTERIOR SPACE PLANNING
ELEMENTS:
 There are some basic elements of good
interior space design you should consider. All
play a critical role in how a space is perceived
and used
 COLOR:this element has enormous influence on
your store’s look and feel,Restful, exciting,
cosy, or airy. Use this powerful tool to help you
reach your interior space design goals
 LIGHTING:- effective use of this factor can make
your store function better and look better at
the same time. Learn how incorporating the
three layers of lighting can do the trick
 FURNITURE ARRANGEMENT - another
important planning consideration is the
placement of furniture. A key here is to
create focused social groupings that allow for
movement
INTELLIGENT SPACE PLANNING
Intelligent space planning begins with an
analysis of the numbers. Ask yourself
these questions:
Do you have a budget or estimate of what
this project will cost?
What are the projected sales for this
store?
Are you happy with your store’s current
image or is it time for a change?
 Are you satisfied with your sales per square foot
per store?
 Do you know the sales per square foot per store?
 Do you have an idea of the type of presentation
you would like to create? What size do you want
the store to be?
 Is there a chain of stores or an individual store
that you might want to use as a model?
 Are you looking to upgrade your merchandise?
 Are you interested in upgrading your
merchandise turns?
 Where do you want to be with your operation in
the next five years?
 Are you happy with your merchandise mix?
 Planning the arrangement and placement of
merchandise and other items inside a retail
building is one of the most important parts of
operating a retail store. With the wrong
design, a company can lose sales by having
customers who are confused with the layout
or who are unable to find what they are
looking for. A well-arranged retail space can
even help customers spend more because
they are attracted to more expensive items
 To plan the space of your outlet store, you should consider its size
and shape and then work with the dimensions when deciding
where and how to display products
STEPS:
 Visit outlet stores. The best way to begin your planning process is
to visit other stores and see how they're designed. Take notes of
what you like and what you think could make your shopping
experience better. Observe the lighting in the store: Is it
adequate to view the quality of the clothes? Observe the signage
in the store: Are prices clearly marked? Is the staff helpful and
well presented? Does the store feel open with plenty of space to
move in, or does it feel cramped with too much merchandise?
These are all concerns you should consider when designing your
store.
 Keep your front entryway clear and open. This
openness allows customers to scan the entire
store as they enter to develop a feel for how
they will manuever through it. Keep the aisles as
wide and free of displays as possible. An outlet
store is meant for efficient, inexpensive
shopping. Keep tables at end caps on their outer
edge and/or off to the side areas of aisles. Make
sure you have a clear space to walk and a
customer does not have to walk around a table to
go down an aisle.
 Place items you want to sell on the right side of the store (from
the perspective of the customer's entrance). Most people are
right-handed, and tend to turn to their right first when looking
for items. When you have items you need to move quickly, place
them to the right
Don't use too tall shelves. If customers have to struggle to reach

something they might like, they may not reach for it. Many
outlet stores have items on high shelves. Be different in this
regard. Shelves should be no higher than 6 feet, if you can help
it. Many stores place merchandise higher than this because of
space constrictions. If you have to, make sure employees have
ready access to stools or a tool to reach the item. Never allow a
customer to use a stool themselves. They could fall and sue you
 Use spotlights on table displays if most of
your merchandise is against the wall. If you
are using floor racks to display your
merchandise, keep lighting even and bright so
customers can see the clothes well as they
are looking through individual racks
 Cash counter should be located at the
centre,incase of a shopping mall the location
of the changing room and washrooms should
be proper
OTHER FACTORS:
Apart from interior space planning,it also includes space
planning in terms of location of the store.
 A new store needs an ideal and attractive location. The
place is the least compromised area for any retail unit.
The decision of place or location mainly arises when:

 A new store is launched
 When there is expansion of the existing store
 When technological changes take place
 When there are more customers to the market
 When there is a new product launched
 When a product has place significance
 When the products pricing are well controlled by the market
forces
 Changes due to economic and global reasons
 When the need for centralization or decentralization arises
 When there is a need for opening or tapping a new market
 When the lease duration is exhausted
 When the existing area is jammed with traffic, no proper vehicle
parking facility
 Other uncontrollable factors influence the shift of the retail
outlet, like:
 Local law and order
 Transportation
 Proximity to customers
 Central place
 Available resources and funds
 Labour availability
 Parking facilities
 Other allied services like municipality and sewerage
 Taxes and costs
Last but not the least “CUSTOMER IS GOD",
do not forget his needs, if he is satisfied,
everything will fall into place automatically,
so plan from his point of view.
THANK YOU!!!!!!

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EFFECTIVE

 The process of deciding how a space can be

Effective planning of the retail space and managing it in a right

 Adequate space planning techniques enable the retailer to have

 This display will attract more customers, minimizes stock outs

Don't use too tall shelves. If customers have to struggle to reach

The decision of place or location mainly arises when:

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