CLASSIFICATION OF RETAILOR

Ownership Based Retailing

Let us see these retailers in detail:

Independent Retailers: They own and run a single shop, and determine their policies
independently. Their family members can help in business and the ownership of the unit can
be passed from one generation to next. The biggest advantage is they can build personal
rapport with consumers very easily.

For example, stand-alone grocery shops, florists, stationery shops, book shops,

1. Sole Proprietorship: This constitutes the majority as many small business ventures start on a
sole proprietorship basis only. In the case of sole proprietorship, the ownership of the business
exists with a single person, usually the one who is responsible for the day to day affairs of
running the business.
2. Partnership: This is also one of the most common business formats in India. In Partnership form
of business, the ownership is shared between two or more people for running the business.

3. Joint Venture: A Joint venture involves the creation of a third or a new entity due to
collaboration between two or more than two parties, with an agreement to manage the business
operations in a particular area by combining their resources and sharing their profits as per the
well-defined terms and conditions of the contract.

Chain Stores:

When multiple outlets are under common ownership it is called a chain of stores. Chain stores offer
and keep similar merchandise. They are spread over cities and regions. The advantage is, the stores
can keep selected merchandise according to the consumers’ preferences in a particular area.

A chain store is a retail outlet that is part of a larger company and sells the
same or similar products as other outlets in the company. Chain stores
usually have standardized store layouts, signage, and product offerings.
They are often found in malls and shopping centers.

Chain stores, often known as retail chains, are a style of retail facility that is
run by central management. They have the same brand and standard
business methods and practices, plus they might be branches or franchises
owned by local people or firms and operated under contract with the parent
firm.

For example, Westside Stores, Shopper’s Stop, etc.

Limited Liability Company (Public and Private):
The Limited Liability Company (LLC) is a relatively new
type of hybrid business structure that is now permissible
in most states. The owners are members, and the duration
of the LLC is usually determined when the organization
papers are filed.

Classification of Retailers on the Basis of

Operational Structure:
Retail businesses are classified on the basis of their
operational and organizational structure. Operational
structure defines the key strategic decision of the retail
entity, whether to hire employees arid manage the
distributed sales function internally or to reach customers
though franchised outlets, owned and operated by local
entrepreneurs.

. Independent Retail Unit:

The total number of retailers in India was estimated to be
over 5 million in 2003. About 78% of these were small
family businesses utilizing only household labour. An
independent retailer owns one retail unit.
ii. Retail Chain:

When multiple outlets are under common ownership it is called a

chain of stores. Chain stores offer and keep similar merchandise.
They are spread over cities and regions. The advantage is, the stores
can keep selected merchandise according to the consumers’
preferences in a particular area. A chain retailer operates
multiple outlets (store units) under common ownership, it
usually engages in some level of centralized (or
coordinated) purchasing and decision-making.

A chain store is a retail outlet that is part of a larger company

and sells the same or similar products as other outlets in the
company. Chain stores usually have standardized store
layouts, signage, and product offerings. They are often found in
malls and shopping centers.

Chain stores, often known as retail chains, are a style of retail

facility that is run by central management. They have the same
brand and standard business methods and practices, plus they
might be branches or franchises owned by local people or firms and
operated under contract with the parent firm

iii. Franchising:
Franchising involves a contractual arrangement between a
franchiser (which may be a manufacturer, a wholesaler, or
a service sponsor) and a retail franchisee, which allows
the franchisee to conduct a given form of business under
the establishment’s name and according to a given pattern
of business. Franchises: These are stores that run business under an established brand name
or a particular format by an agreement between franchiser and a franchisee. They

can be of two types:

1. Business format. For example, Pizza Hut.

2. Product format. For example, Ice cream parlors of Amul.

iv. Leased Department or Shop-In-Shop:

It refers to a department in a retail store that is rented to
an outside party. Usually, this is done in the case of
department and speciality stores and also at times, in
discount stores.
v. Co-Operative Outlets:
Consumer Cooperative Stores are enterprises established, owned, and managed by a
group of consumers sharing common interests. In simple words, it is an association of
consumers who voluntarily come together to satisfy their common needs along with
safeguarding their interests as a consumer. These are businesses owned and run by
consumers with the aim of providing essentials at reasonable cost as compared to market rates.
They have to be contemporary with the current business and political policies to keep the business
Co-operative outlets are generally owned and
healthy.
managed by co-operative societies. In this context, one
example is Kendriya Bhandar in India
EX- Sahakari bhandaar, Apna Bazar, Mother Dairy

Merchandise Based Retailing

Let us see these in detail:

1. Convenience Stores: They are small stores generally located near residential
premises, and are kept open till late night or 24x7. These stores offer basic essentials such as
food, eggs, milk, toiletries, and groceries. They target consumers who want to make quick and easy
purchases.

For example, mom-and-pop stores, stores located near petrol pumps, 7-Eleven

from US, etc.

2. Super Markets
 Supermarkets operate on a large scale basis and are the self-service kind of
stores which may be entirely operated by the owner or may lease some of the
departments on concessional rates.
 These stores are usually located in prime shopping locations where facilities for
the parking are available.
 The key hallmarks of supermarkets are the availability of a variety of
merchandise and branded products, affordable prices and availability of
parking facility.
 These are large stores with high volume and low profit margin. They target mass consumer
and their selling area ranges from 8000 sq.ft. to 10,000 sq.ft. They offer fresh as well as
preserved food items, toiletries, groceries and basic household items. Here, at least 70%
selling space is reserved for food and grocery products.

For example, Food Bazar and Tesco.

3. Hypermarkets:
These are one-stop shopping retail stores with at least 3000 sq.ft. selling
space, out of which 35% space is dedicated towards non-grocery products.
They target consumers over large area, and often share space with restaurants
and coffee shops. The hypermarket can spread over the space of 80,000
sq.ft. to 250,000 sq.ft. They offer exercise equipment, cycles, CD/DVDs, Books,
Electronics equipment, etc.
LuLu Hypermarket in India has its presence in LuLu International
Shopping Mall in Kochi and LuLu Global Mall Bengaluru with plans to open
more stores. LuLu Hypermarket, the retail division of the multidimensional
and multinational LuLu Group International has always been known as a
trend setter of the retail industry in the region. Today, LuLu symbolizes
quality retailing with 201 stores and is immensely popular with the discerning
shoppers across the Gulf region.
With its pleasant and novel variation from the usual supermarkets, LuLu
offers an ultra-modern shopping ambience by integrating all conceivable
needs of the consumers under one roof. LuLu Hypermarkets have extensively
laid out counters, sprawling parking spaces, play areas for children, food
court, money exchange and bank counters besides a panoply of international
and regional brands aptly justifying its tagline, 'LuLu, where the world comes
to shop'.

For example, Big Bazar from India, Giants Walmart from US.
Specialty Stores: These retail stores offer a particular kind of merchandise such as home
furnishing, domestic electronic appliances, computers and related products, etc. They
also offer high level service and product information to consumers. They occupy at least
8000 sq.ft. selling space.
For example, Gautier Furniture and Croma from India, High & Mighty from UK.

4. Departmental Stores:
A departmental store is a classic example of a large retailer or large
retailing business. It is, in fact, one of the mainstays of the retailing industry.
These stores are generally incredibly huge stores and sell a very wide variety
of products. These products are organized into categories, or rather into
‘departments‘. And all these departments are under the same roof.
It is a multi-level, multi-product retail store spread across
average size of 20,000 sq.ft. to 50,000 sq.ft. It offers selling space in the range
of 10% to 70% for food, clothing, and household items.
For example, The Bombay Store, Ebony, Meena Bazar from India, Marks &
Spencer from UK.
Shopping mall
A very large building or buildings containing a lot of stores and
restaurants, usually with space outside for parking: A shopping mall is no
longer just a place to go to buy something, it's a community and entertainment
center.
(or simply mall), shopping center, or shopping arcade is a building or set of
buildings that contain retail stores, with interconnecting walkways enabling
visitors to easily walk from store to store. The walkways may be enclosed. In
the British Isles and Australia, "shopping malls" are more usually referred to as
"shopping centres" or, sometimes, "shopping arcades." In North America, the
term "shopping mall" is usually applied to enclosed retail structures, while
"shopping center" or "shopping plaza" refers to open-air retail complexes.
LuLu International Shopping Mall is the largest mall in India in terms of
total retail area and has over 225 outlets spread across four floors. Located
in the city of Kochi, this mall has brought 100+ biggest brands in the
world to Kerala for the first time. It also has one of the India’s biggest
hypermarkets, besides a 2500-seater multi-cuisine food court and many
fine dining restaurants and cafes.

For entertainment purposes, there is a 9-screen PVR Gold Class multiplex

and a leisure zone that has a 12-lane bowling alley, an ice skating rink, a
trampoline park, a 5D theatre and a host of amusement rides and arcade
games. The mall also has many other facilities including ATMs, baggage
counter and a state-of-the-art automated parking area with a capacity to
accommodate 3,800 vehicles.
Non-Store Based (Direct) Retailing
It is the form of retailing where the retailer is in direct contact with the
consumer at the workplace or at home. The consumer becomes aware of the
product via email or phone call from the retailer, or through an ad on the
television, or Internet. The seller hosts a party for interacting with people.
Then introduces and demonstrates the products, their utility, and benefits.
Buying and selling happens at the same place. The consumer itself is a
distributor.
For example, Amway and Herbalife multi-level marketing.
Non-Store based retailing includes non-personal contact based retailing such
as:
 Mail Orders/Postal Orders/E-Shopping: The consumer can refer a
product
catalogue on internet and place order for purchasing the product via
email/post.
Telemarketing: The products are advertised on the television. The price,
warranty, return policies, buying schemes, contact number etc. are described
at
the end of the Ad. The consumers can place order by calling the retailer’s
number. The retailer then delivers the product at the consumer’s doorstep.
For example, Asian Skyshop.
.
Automated Vending/Kiosks: It is most convenient to the consumers and
offers
frequently purchased items round the clock, such as drinks, candies,
chips,
newspapers, etc.
 The success of non-store based retailing hugely lies in timely delivery of
appropriate product.

Direct selling
This form of retailing is common for products like cosmetics, food products, educational
materials and basic home appliances where the consumer will be in his place while the
marketer brings the products to his doorsteps. Over the last decade the concept has grown
leaps and bounds and according to the direct selling industry in India, there has been a 60-65
percent growth in sales turnover from this industry alone every year.

Electronic Shopping

The fastest growing medium to do retailing is electronic medium. Every brick and motor
retailers are looking for click only models whereby customers can order products at the click
of a button. This format virtually eliminates the physical infrastructure needed and can help
in reducing the cost of operations. An effective supply chain is what these players need. It has
been estimated that the Indian online shopping market is worth Rs.150 crores with 25%
growth in 2005-06. The industry is expected to grow in the next 3-5 years. E-bay, rediff.com
are some of the online shopping portals in the country.

4. Classification of Retailers on the Basis of Retail

Location:
Retailers have also been classified according to their
store location. Retailers can locate their store at an
isolated place and attract the customers to the store on
their own strength—such as a small grocery store or paan
shop in a colony, which attracts the customers staying
close by.
i. Retailers in a Free-Standing Location:
Retailers located at a site which is not connected to other
retailers depend entirely on their store’s drawing power
and on the various promotional tools to attract customers.
This type of location has several advantages including no
competition, low rent, and better visibility from the road,
easy parking and lower property costs. For example -the
Haldiram outlet on the Delhi- Jaipur highway and
McDonald’s outlet on Delhi-Ludhiana highway.
ii. Retailers in a Business-Associated OR
UNPLANNED Location:
 Central business districts such as traditional “downtown” areas
in cities/towns.
 Secondary business districts in larger cities and main street or
high street locations.
High pedestrian traffic during business hours, high resident traffic,
nearby transport hub.
In this case, a retailer locates his store at a place where a group of
retail outlets, offering a variety of merchandize, work together to
attract customers to their retail area, and also compete against each
other for the same customers.

Planned Shopping Areas

These are retail locations that are architecturally well-planned to
provide a number of outlets preferably under a theme. These sites
have large, key retail brand stores (also called “anchor stores”) and a
few small stores to add diversity and elevate customers’ interest.
There are various types of planned shopping centers such as
neighborhood or strip/community centers, malls, lifestyle centers,
specialty centers, outlet centers.
Advantages − High visibility, high customer traffic, excellent parking
facilities.
Disadvantages − High security required, high cost of occupancy.

iii. Retailers in Specialized Markets:

Besides the above location-based classification, we also have in India-
retailers who prefer specialized markets, particularly traditional
independent retailers or chain stores. In India, most of the cities have
specialized markets famous for a particular product category.
For example, in Chennai, Godown Street is famous for clothes,
Bunder Street for stationery products, Usman Street for jewellery, T
Nagar for ready-made garments, Govindappan Naicleen Street for
grocery, and Poo Kadia for food and vegetables.
iv. Airport Retailing:
For quite some time, duty-free shops and news-stands dominated the
small amount of commercial space provided at airports. Lately,
serious efforts are being made to design new airport facilities, in order
to provide substantial amounts of retail space.

What is trade area analysis?

Trade area analysis is studying and understanding trade activity within a given
geographical area. This includes things like what types of businesses are there (and
how many), along with how many potential customers are in the area, where they
are coming from (or going), and what they are buying.

A trading area is a contiguous area from which a retailer

gets customers for the merchandise he is selling. A trade
area may be a town, city, district, state, and country or
even beyond the country’s boundaries. The trade area may
be divided into few layers (zones) depending upon the size
and operations of the store, its location, merchandise
offered and services offered.

Trade area analysis

Now a days non store retailing is growing, most of the retailers are still
selling from retail store space. Some of these retailers are very small
single-store operators, and some are huge superstore discounters. Each
location selected resulted from an effort to satisfy the needs of the
particular market each was designed to serve. Whether it was the
customer’s need for convenience, their desire to do comparison shopping,
the extent of the purchasing power in a market area, of the transportation
facilities available, and many factors together led to the development of
different kinds of retail locations. There is an old saying that the value of
real estate is determined by three things: location, location, and location.
A wall street journal study looked at the largest store as measured by
gross sales of the twenty largest brands. Not surprisingly, in nearly every
case, a unique location was a major factor.

Generally, a trading area may be divided into primary,

secondary and tertiary zones. The primary zone is the first
layer of any trading area that provides 60-65% of its
customers. It is close to the store and includes nearby
colonies and residential areas. The secondary zone comes
after primary zone but before the tertiary zone. It is the
geographical area that contains around 20% of the total
customers of the respective store in terms of customer
sales and merchandise demanded.

The tertiary zone commonly known as outermost circle

contains the remaining 10- 15% customers, who
occasionally visit the store and shop. These are the
customers who travel a long way to reach the store
because their nearby stores are not able to fulfill the local
demand. Further, there are some forces of attraction that
lure the customers from tertiary zone such as wide
merchandise assortment, lower pricing policy, payment
options and high-level customer service.

Factors to be considered while analyzing trade area:

Retail trade area analysis is a process businesses use to attempt to envision and

understand where their customers are coming from and who they are. This involves

understanding how many potential customers exist in an area, what their

demographics are, and how much competition there is from other businesses.

Additionally, businesses need to understand what hours potential customers are

available and what their preferred method of transportation is. In other words, this

analysis is used to help businesses locate their customer base, understand what

times they are available, and how best to reach them. More specifically, retail trade

analysis can be used for:

1. Total size and density (demand and supply) of the

population.
2.Per capita disposable income.

3. Education level.

4. Family system (joint / nuclear).

5. Occupation (job / professional / own business).

6. Standard of living.

7. Age group distribution.

8. Number of residents owning homes.

9. Number of manufactures, suppliers, wholesalers

available.

10. Size of competition.

Every business has both direct and indirect competitors—knowing who they
are and what they're up to give you a real competitive advantage. Size them
up today. or a new business owner, competition from established brands and
businesses can seem intimidating. But if you rush into business without
evaluating what your competitors are doing, you will miss important learning
opportunities and greatly increase your risk of failure.

Factors affecting retail location

1.Population of the city

When choosing a city or state to locate your retail store, research the area
thoroughly before making a final decision. Read local papers and speak to
other small businesses in the area. Obtain location demographics from the
local library, chamber of commerce or the Census Bureau. Specialty
research firms that cater to retailers could also provide demographic
information. Any of these sources should have information on the area's
population, income brackets, and median age. You know who your
customers are, so make sure you find a location near where your
customers live, work and shop.

2.– Understand the Demographics –

Demography is the study of population characteristics that are
used to describe consumers. Retailers can obtain information about
the consumer’s age, gender, income, education, family
characteristics, occupation, and many other items. These
demographic variables may be used to select market segments, which
become the target markets for the retailer. Demographics aid retailers
in identifying and targeting potential customers in certain geographic
locations. Retailers are able to track many consumer trends by
analysing changes in demographics. Demographics provide retailers
with information to help locate and describe customers. Linking
demographics to behavioural and lifestyle characteristics helps
retailers find out exactly who their consumers are. Retailers who
target certain specific demographics characteristics should make sure
that those characteristics exist in enough abundance to justify
locations in new countries or regions.
3 – Market Potential :
Density of population in the prospective location, anticipation of
competition impact, estimation of product demand, knowledge of
laws and regulations in operations. The demand for a retailer’s goods
and services will influence where the retailer will locate its stores.
Not only must consumers want to purchase the goods, but they must
have the ability or money to do so as well.
 4.ACCESSIBILITY AND CUSTOMER TRAFFIC –

Number of customers visiting the location, number of private

vehicles passing through the location, number of pedestrians visiting
the location.

Business traffic is more than the number of customers coming

to your location. The term also considers the type of customer
coming in and whether they meet the definition of your target
demographic. Your store location may not contribute to your
success if consumers walk into your business yet do not finalize
sales.

You can consider the following when searching for the

optimal site:

 Do more customers walk or drive past the location?

 Is the location accessible via public transportation?
 Is the parking area accessible to consumers and
delivery vehicles?
 Does the parking area have adequate parking?

Regarding parking lots, it’s best to select a site with six

to eight parking spaces per 1,200 square feet of your
building.

5. ZONING

Contacting the local zoning commission and the city hall can
facilitate the understanding of policies and regulations on
signage. The commercial property could have limits on size and
imagery used in signs. You’ll also want to plan for any
construction projects and their impact on traffic.

6.RETAIL SIZE AND SPACE:

Examine the location to determine whether the property has

adequate space for your services. You may want to compare
sites and layouts by using existing location performances. Too
 large of a property, and your store may look empty and
uninviting. On the other hand, too small of an area may result
in a cluttered site that inconveniences your customers.

7.THE TYPE OF MERCHANDISE SOLD

Surprisingly, specific goods may require looking in certain types

of locations. Depending on the property size and the diversity
of your merchandise, you’ll want to carefully consider the area.

8. COMPETITORS AND NEIGHBORS

It’s best to prospect an area to learn about compatible

businesses and your competitors nearby. For instance, an
upscale clothing store may not perform well in a shopping strip
with a discount variety locale and convenience shop. In this
case, positioning the clothing boutique near a beauty salon
would attract the same clientele and generate more revenue.

9.LOCATION COSTS:

While you’ll need funding to cover base rent expenses, you’ll

want to adjust your budget for the following costs:

 Routine lawn care and security

 Heating and air conditioning unit maintenance
 Painting and modifying expenses
 Property taxes

Keep in mind that your location costs will vary between now
and the future, but you can determine rent expenses based on
sales projections and leases from similar businesses.

10.Parking Facilities

Parking today has become the most uncontrollable civic

problem for not only metro / big cities but even the small cities
and towns are facing the same problem. In a store where tens
to hundreds of customers come to shop with their vehicles
(two or four wheeler), require space to accommodate their
vehicles.

In absence of proper and safe parking arrangement, customers

hesitate to visit the store, knowing parking today has become
the reason for public clashes, stealing and other cases of road
rage. There are several ratios that are used to determine the
provision for parking lot.

For a food store, retailers throughout the globe usually apply

the ratio of 3:1, which means 3 sq.ft of parking space for every
sq. ft of retail store. One thing may be remembered that no
ratio is universal in real life sense but it depends on the
product to be sold and the place where your store will be
located, i.e. nearby public parking lots.

 Store design and factor affecting store design

A retailer’s store layout isn’t the only thing that informs the shopper of the kind of
experience he or she is about to have. In fact, everything about the store helps add
to the environment of the shopping experience.

The options for interior store design are as limitless as the imagination of the
designer. There can be neon signs or natural wood, industrial looking ceilings or LED
lighting.

Some retailers go out of their way to provide that experiential moment, and it’s
not always directly related to shopping. Some interesting elements to add to the
shopping experience might include the mall in Dubai that features a 2.6 million gallon
fish tank at its center. That might seem odd, but it’s already caught on. The Great
Lakes Crossing Mall in Auburn Hills, Michigan, also features an aquarium as part of
the mall shopping experience. As malls start to fall out of favor, we’ll likely see more
retailers pushing for interesting solutions that use empty mall space and attract
shoppers.
DEFINITION ;

1. Store design: The store design encompasses the intentional use of space
management and floor plans, including displays, furniture, fixtures, signage and
lighting. The structure of store design is highly influential in the customer experience.

2.Retail store design is a branch of marketing and considered part of the overall brand
of the store. Retail store design and display factors into window displays, furnishings,
lighting, flooring, music and store layout to create a brand or specific appeal.

1.The exterior design of any retail store The exterior design of

must protect the interior from the outside elements (heat, dust, humidity,
light etc.). Just as important, it also serves to convey information to potential
customers. The exterior is first part of the store that potential customers see.

must protect the interior from the outside elements (heat, dust, humidity, light
etc.). Just as important, it also serves to convey information to potential
customers. The exterior is first part of the store that potential customers see.
They will determine from the outside whether or not they wish to enter and
shop. It is critical that the outside of the store gain the attention of customers
and entice them to enter. If the outside does not reflect an image appropriate to
customers, they will not enter into the store.

1..Store Entrance:
One of the first and most striking impressions customers get of a
store is the one they receive as they go through the front door. An
entrance should be more than a device to keep people out of the store, to
encourage them to come in, or to protect against the elements. An
entrance should have character, and it should say to prospective
customer, “Please come through the door where you will be treated with
courtesy and friendliness and served to the best of our ability.” The
entrance might be graceful and elegant or dull and functional; in any case,
it should be compatible with the store design and provide an easy way to
enter.

2.Store front:
Shop fronts are composed of a number of functional elements and architectural features that work
together to form a visual framework. There are three possible front configurations
namely, Straight front Angled front and Arcade front.

The “straight front” is a store configuration that runs parallel to the side-
walk, street, mall or a parking lot. Usually the only break in the front is a small
recess for an entrance.
. The “angled-front” configuration overcomes the monotony of the straight
front by positioning the store’s front at a slight-angle to the traffic arteries. To
create a more attractive and interesting front, retailers that use the angled front
approach place windows and entrances off centre or at one end of the store’s
front.

Angled fronts also give the window-shopper a better viewing angle of the
merchandise is the window and reduce the possible window glare. The entrance
in an angled front is usually located at the most recessed part, to funnel and
direct consumers into the store. It provides more protection for the window-
shoppers than straight-front. The major limitation of the angled front is that it
reduces the interior space. The retailer otherwise could use for selling
operations.

The “arcade front” is characterized by several recessed windows and

entrances. The main merits are: (1) It increases the store’s frontage exposure
and display areas; (2) It provides the shopper with several protected areas for
window-shopping; (3) It increases the privacy under which the shopper can
inspect window displays; (4) It creates an attractive, relaxing atmosphere for the
shopper and (5) It reduces glare for major part of the store front. The demerits
are: (1) It reduces substantially the interior space for selling and displaying
merchandise; (2) It calls for huge investment in construction and construction
materials and (3) It requires a professional display staff to make full use of the
arcade concept of window settings.

3. Mannequins
Mannequins in simpler words also called as dummies play an important
role in visual merchandising.
The artificial dolls used by the retailers to display their merchandise (can be
anything) are called as mannequins. The mannequins help the customers to
know about the latest trend the store offers without sometimes even bothering
the sales representative. It is the attractive mannequin which pulls the customer
into the store.
Mannequins are used to highlight the unique collections of the store.
Mannequins display the latest trends in fashion and influence the customers to
buy the particular merchandise. Mannequins attract the customers into the store
and thus increase the revenue and profit.
4.Sign Board:
Effective use of signs identifies the nature of the business, build a
corporate identity, communicates an image, ties the company to its
advertising through the use of a logo, and attracts to the store. The most
common signage is in plastic based materials despite the relatively high
cost. Companies find that effective signs have individual letters that are
coated in tough plastics and illuminated from within by neon tubes. This
type of sign has advantages because it uses 15 to 20 percent less energy
than other lighted signs and has an extremely long life. Stores desiring a
very contemporary look may use exposed tubes; small strip shopping
centers may use hand crafted wooden signs to maintain a low profile.
Backlight signs offer a slightly more expensive possibility. Instead of the
light splashing out of the front of the letter, it washes the wall with a
silhouette. Mall tenants may be limited in the type and size of their sign
management rules. Signs from materials such as wood or metal that have
direct lighting can be used to create different images from luxury to
country. However, plastic technology today allows the creation of nearby
and look.
5.Windows:

The main purpose of windows is to attract attention and create an image

to potential customers standing outside. Humor, theatrical flair, color, motion, or
sound playing outside the windows work well to increase the effectiveness of the
display. One of the biggest advantages of display windows is the ability to
dramatically affect the exterior of the store. Most of the exterior requires major
renovations to change. A retailer can take advantage of its window space to
reflect changes in the store’s offerings on a seasonal or monthly basis. The
window displays project the image of the store. While one story may be trying to
say “Quality” in its windows by showing specific brands or fashions, other stores
may use window displays to project a low price or value image. Regardless of
whether it is a children’s store, a sporting goods store, or a home furnishings
store, the window display is often one of the first efforts to communicate with
customers and invite them. Window design is a function of the physical design
of the store, and not something specifically requested by the retail manager or
merchandising designer. The open back, as opposed to the closed back, is a
window through which the interior of the store itself becomes the display case

2.Store Interior Design:

A retailer’s store layout isn’t the only thing that informs the shopper of the kind of
experience he or she is about to have. In fact, everything about the store helps add
to the environment of the shopping experience.

The options for interior store design are as limitless as the imagination of the
designer. There can be neon signs or natural wood, industrial looking ceilings or LED
lighting.

Some retailers go out of their way to provide that experiential moment, and it’s not
always directly related to shopping. Some interesting elements to add to the
shopping experience might include the mall in Dubai that features a 2.6 million gallon
fish tank at its center. That might seem odd, but it’s already caught on. The Great
Lakes Crossing Mall in Auburn Hills, Michigan, also features an aquarium as part of
the mall shopping experience. As malls start to fall out of favor, we’ll likely see more
retailers pushing for interesting solutions that use empty mall space and attract
shoppers

Flooring
The flooring in a store makes a statement in the shopping experience. Is there
carpet? Tile? Wood? A carpeted store is usually quiet, allowing for the shopper to
have a quiet, serene experience with the merchandise. Tile, cement or wood will be
a little louder. Tile allows a retailer to bring in brand colors and demarcate different areas of
a store. Perhaps the tile changes when the shopper moves from department to department.
A toy store might have pink and blue tile in an area where baby toys are sold, and then the
boy’s department becomes a bright red and blue as you move from soft plush to Tonka
trucks.

Retailers are taking a sophisticated “return investment” approach to flooring

decisions. Firms are willing to pay higher-up-front installation costs for more
expensive materials if they see a return in greater durability and reduced
maintenance expenses. Flooring choices are important because the coverings
can be used to separate departments, muffle noise in high — traffic areas, and
strengthen the store image. The range of choices for floor coverings is endless:
Carpeting, wood, terrazzo, quarry tile, and vinyl composition all have
applications in different settings.

Lighting

Warm light, cool light, natural light, fluorescent light…there’s so many kinds of light
and so many fixtures to choose from! That said, types of lighting in a retail store can
be broken down into four general categories:

 General/ambient lighting
 Task lighting
 Accent lighting
 Decorative lighting

Your general/ambient lighting is the main source of light in your store. If you walk into
Wal-mart, you’re going to have fluorescent lighting. It’s nothing special and, in fact,
the message retailers are sending to their customers is exactly that: this is a basic,
value-based shopping experience. Grocery stores and big box retailers also use
fluorescent light. It’s an inexpensive and efficient way to light a large space.
Warm, incandescent light sends customers the message that they’re going to have a
more intimate, special shopping experience. You’ll often see apparel stores using
incandescent light because incandescent light shows colors a little more “true” and
the shoppers themselves won’t look pale and bluish when they’re trying on clothes. A
clothing retailer wants his shoppers to like how they look in his clothing, and
sometimes even if the main shopping area is lit in fluorescent bulbs the fitting areas
will be lit with incandescent.

Walls and Ceiling Colors

Colors influence shoppers’ emotions and they can be carefully chosen to influence
the shopping experience. Colors also take on certain meanings in different cultures,
and, depending on your shopping demographic, the retailer is wise to choose his
colors carefully. Indeed, the colors the retailer chooses for her store aren’t as
important as how her target market will react to them. Younger people respond
better to bold colors, and older people like muted tones.

What kind of messages can a retailer be sending in color choice?

 Blues are calming. If the product is agitating, painting the walls blue can help
keep an atmosphere of calm.
 Greens convey freshness and peace. Health stores, grocery stores offering
fresh produce, often use greens. Florist shops also can benefit from shades of
green in their retail area.
 White can be agitating for shoppers, but it can also convey a sense of
cleanliness. Some clothing stores do well with white walls, especially if they are
higher end and have fewer products on display. Apple uses white and grays
very well in their stores to enhance their brand message.
 Pink is an energetic color, and purple is a creative color. Often, these colors
are associated with romance and used in shops targeting women.
 Reds can make shoppers anxious because it’s a very powerful color, but
oranges tone those feelings down a bit. In fact, orange stimulates appetite, so
food stores do well with that color.
 Yellow is a happy color and is often found as the primary color in children’s
stores

Fixtures

Wall Fixtures: To make store‘s wall merchandisable, wall usually covered with
a skin that is fitted with vertical columns of notches similar to those on a
gondola, into which a variety of hardware can be inserted. Can be merchandised
much higher than floor fixtures
A major consideration in developing an appropriate store design involves the
use of fixtures. They are used to display merchandise, to help sell it, to guard it,
and to provide a storage space for it. They should be attractive and focus
customer’s attention and interest on the merchandise

.  Straight Rack – long pipe suspended with supports to the floor or attached to
a wall

 Gondola – large base with a vertical spine or wall fitted with sockets or
notches into which a variety of shelves, peg hooks, bins, baskets and other
hardware can be inserted.

 Four-way Fixture – two crossbars that sit perpendicular to each other on a

pedestal

 Round Rack – round fixture that sits on pedestal Other common fixtures:
tables, large bins, flat-based decks

Displays
Display an important role in a retail store. An attractive and informative
display can help sell gods. Poorly designed displays can ruin the store’s
atmosphere and center an uncomfortable setting. Since displays often
take up premium space with in the store, they carry a heavy burden of
productivity in terms of creating sales. There are several principals of
rules of displays that help ensure their effectiveness :

Colour
The psychological effect of color continues to be important to retailers.
Color is also important in ware house type stores because of the vast
open area of the interior. Bold colors are frequently used to highlight
merchandise sections or departments and to reduce attention to what is
typically an open—girder ceiling. Clearly, intelligent use of color is
important in store design. Since people are drawn to warm colors, yellow
and red can help draw customers into the store through the entrance.
Cool colors such as blues and greens tend to calm people and are useful
in areas where customers need time to deliberate over the purchase
decision.

Lighting
Proper lighting is one of the most important considerations in retail
design. At one point in time the function of lighting was to provide
customers with a means of finding their way through the store. Today,
lighting has become a display medium. It is an integral part of the store’s
interior and exterior design. Lighting should match the mood retailer is
attempting to create with the rest of the store decor and should
complement, rather than detract from, the merchandise.

Shelving
The material used for shelving as well as its design must be compatible
with the merchandising strategy and the over all image desired. Stainless
steel shelving creates an entirely different effect than the painted wood
cubes in the Country Seat or the typical metal shaving seen in a general
merchandise store, Glass shelving, framed in the woods, creates an
element of elegance difficult to achieve otherwise. General shelving
considerations and merchandise display are discussed in the next
selection.