Chapter-8Chapter-8

ATMOSPHERICS AND RETAIL SPACE MANAGEMENT

AtmosphericsAtmospherics

• Atmospherics: a store's physical characteristics

that are used to develop a retail unit image and

draw customers

• Describes the physical elements in a store's design

that appeals to consumers and encourages them to

buy

• Classified in terms of exterior and interior

atmospherics

Atmospherics planningAtmospherics planning

• Increasingly gaining relevance for all kinds of retail setups

• Especially true for planned shopping centers and life style stores

• Plays an important role in: - creating brand positioning for the outlet

- attracting new customers - facilitating the better organization of the store and

its merchandise - enriching the shopping experience

Role in retail strategyRole in retail strategy1.  Enhances the image of the retail outlet2. Attracts new customers3. Creates a definite USP4. Generates excitement5. Facilitates easy movement inside the store6. Facilitates access to merchandise inside the store7. Ensures optimum utilization of retail space8. Ensures effective and desired presentation of

merchandise9. Reduces product search time for the customer 10. Reinforces the marketing communication of the

outlet11. Influences the service quality experience

Impact of physical environmental Impact of physical environmental factors on shopping behaviourfactors on shopping behaviour

Physical environment 

Store layout & design 

Merchandise display 

Music 

Aroma

Emotions

Customer Senses

Customer Senses

Key components of retail Key components of retail atmospherics atmospherics

• Four key components of atmospherics: 1. exterior atmospherics

   2. interior atmospherics

      3. store layout

      4. visual merchandising

External atmosphericsExternal atmospherics• All aspects of the physical environment found outside

the store are external atmoshperics• Significantly affects store traffic and sales • Generated by all aspects of the store exterior • Store exterior includes store entrances, main board,

marquee, windows and lighting

Elements of exterior atmospherics

Storefront

Visibility

Marquee

Uniqueness

Entrances

Surrounding Stores

Interior atmosphericsInterior atmospherics

• Interior atmospherics: refers to all aspects of physical

environment found inside the store

• Key ingredients: flooring, music, interior store design,

and level of cleanliness

• Affects sales, time spent in the store, and

approach/avoidance behavior of the target segment

• Point-of-purchase interaction and retail unit

decoration influences the customer and sales of the

retail unit

Interior atmosphericsInterior atmospherics contdcontd

• Store’s physical environment influences shopping behavior by mediating emotional states

• The retail unit environment presents various stimuli that are perceived by the customer's senses

• Each stimulus offers many options with regard to shopping behaviour (store music varies by volume, tempo, pitch and texture, and by the specific songs played)

Elements of retail atmosphericsElements of retail atmospherics

             

Exterior AtmosphericsStorefrontMarqueeEntrancesDisplay windowsSize of buildingVisibilityAdjoining StoresParkingAccessibility

Store LayoutFloor space allocation for selling, merchandise display,and customerTraffic FlowDepartment locationSpace/merchandise categorySignage

Interior AtmosphericsFlooring WallDead area Trial roomLighting AislesPersonnelOdour TemperatureCleanliness Fixtures

Visual Merchandising

Assortment Theme Ensemble Racks and shelves Payment Counters

Elements of retail store atmospherics

Dimensions of interior and exterior atmosphericsDimensions of interior and exterior atmospherics

Dimension of atmospherics

Exterior atmospherics Interior atmospherics

• parking lot

• adequate parking

• visibility in parking

lot

• building appearance

• aesthetics

• layout

• display

• personnel

Store layoutStore layout

• Store layout: the interior retail store arrangement of departments or groupings of merchandise

• Store arrangement:- pays adequate attention to the expected movement

of the customers visiting the store

- space allotted to customers to shop

- adequate facilities for merchandise display • Customer friendly store layouts motivate shoppers

to move around the store and shop more than what they had planned

Store layoutStore layout contdcontd

• Organized retail firms on the other hand, ensure sufficient space within the store for customers and create a layout to facilitate a specific pattern of traffic movement

• Most independent retailers prefer racks and shelves placed along the walls

• Logical sequencing and category adjacency is essential in planning store layout

• Store layout planning involves decisions about allocation of floor space, product groupings, and nature of traffic flow

Grid layoutGrid layout

Free form layoutFree form layout

Boutique layoutBoutique layout

Race track layoutRace track layout

Entry I

Entry 2

Visual merchandisingVisual merchandising

• Visual merchandising or display is the presentation of products in order to sell them

• Key aspects: store floor plan, store windows, signs, merchandise display, space design, fixtures and hardware

• More sophisticated and encompassing and goes beyond merely arranging merchandise for easy access to customers.

• Process set in motion with designing the floor plan of the store, placing of mannequins, etc,.

Wall displaysWall displays

• Slatwall is a popular wall system used to display merchandise and maximize the total use of wall areas

• Slatwall panels and accessories allow complete versatility to display merchandise on the panel

• Give a clean and streamlined appearance• Slotted wall standards are effective for displaying

heavier merchandise and allowing the display of more merchandise on wall areas

• Hardware accessories such as shelving brackets, hangrail brackets, and face-outs provide organized and effective merchandise presentation

Floor fixturesFloor fixtures

• Gridwall panels and accessories : - a versatile fixture to utilize both wall-mounted applications and

freestanding floor displays - durable, medium weight system in a variety of panel sizes, which

accept various display accessories for hanging, shelving, and merchandising products

• Garment racks and displayers: garment racks and displayers are beneficial to show and sell items using floor displays

• Display cases and counters: display cases and counters feature sturdy construction and durable low-pressure laminated finishes in solid colors and wood grain styles

• Metal shelving gondolas: metal shelving gondolas display a number of products easily with total merchandising flexibility 

Product display fixturesProduct display fixtures

• Mannequins and body forms- essential for enhancing merchandise - make it easier for customers to visualize how clothing

will look on the wearer- traditional life size mannequins offer a flattering look to

clothing - most effective way to sell merchandise

• Clear acrylic displays - offer many innovative fixtures- give a clean look with the greatest eye appeal for products - help the retailer sell more merchandise - display items on slatwall, gridwall, and countertop use - useful for displaying accessory items

Promotional itemsPromotional items• Window signs and banners

- traffic-stoppers and create an opportunity to get a shopper’s attention

- many retailers underestimate the powerful pull of an effective window sign

- a retail store sell merchandise to shoppers by attracting then with effective signs, banners, and promotional displays

- a well thought out and effectively signed promotional interior can be a call to action for shoppers - using promotional signs and sign holders, and colourful

sales tags as a visual hook can attract customer response and help increase sales

Lighting fixturesLighting fixtures

• Track lighting enhances colour and vivid colour sell merchandise

• Used for perimeter lighting and illuminating wall displays

• Used as accent lighting for highlighting specific merchandise adding excitement and drawing attention to merchandise

Store Store sspace managementpace management

• Retail space allocation decisions are conceived and implemented at department level, category level, and the SKU level for big departmental super market stores

• Space allocation: process of distributing the right amount of space to the right merchandise at the right time according to a detailed analysis of customer demand

• Retailers normally depend on historical data or on their experience for allocating space (common with retailers using unorganized formats)

• Sales and profitability are bases for space allocation

Walls as retail selling toolsWalls as retail selling tools

• Walls are the largest selling fixture in the retailer’s overall selling strategy

• Meet several visual-merchandising objectives -captures shopper attention as they enter the retail space -wall displays draw shoppers into the store and exposing

them to more merchandise-communicates fashion information -encourages multiple purchases-act as a way-finding tool and guides shoppers to

products-forms the retail background, supports store image by

the strategic use of a variety of interesting wall surfaces, paints, colours, and wallpapers

-these reinforce the retailer’s atmospheric intent

Colour planningColour planning

• Color Schemes

- complementary schemes

- split-complementary schemes

- double-complementary schemes

- triadic schemes

- analogous schemes (or color families)

- monochromatic schemes 

Physical materials in store Physical materials in store designingdesigning

Materials used in retail store designing

Type of material for flooring- carpet (designer, one-colour, multi-colour)

- wood work (polished/unpolished)

- tiles (terra-cotta, marble, mosaic, sun mica )

- rubber/ plastic

Type of material for walls- plaster (painted, raw paint effect)-- glass (opaque, tainted, coloured)

- panelling (wood, steel, dark,

light, illuminated)

 - ceramic tiles