Simply irresistible - effective retail store layout; includes sources for more information

Nation's Business, Jan, 1995 by Janet L. Willen

The layout at McKay's Bakery in Abilene, Texas, emphasizes visibility. "You see everything three times," says co-owner Dianne Green, "when you come in, while sitting, and when you leave. Dessert items are tempting customers all the time."

By making customers walk past expensive pies and decorated cakes to get to inexpensive muffins and day-old bread, Green is following the principles of good store layout.

According to Barton A. Weitz, director of the Center for Retailing Education and Research at the University of Florida in Gainesville, a store layout should do these three things:

Stimulate Impulse Purchases

One way retailers use layouts to entice customers to buy more than they intended is to draw them through the store so they'll see as many of the products as possible.

"You want to move people through the store," says Stephen F. Hill, owner of the Hill Design Group, the Roswell, Ga., firm that designed McKay's Bakery.

Jewelry stores put their better products toward the back of the store to pull people in, he says, and supermarkets tend to put popular departments--produce, meat, bakery, deli--along the perimeter.

At Gatto's Cycle Shop, in Tarentum, Pa., customers at the store's '50s-style diner are tempted by more than burgers and sodas. To enter or leave the restaurant, patrons must pass motorcycles, bicycles, JetSkis, clothing, and accessories, says the owner, George Gatto.

Successful retailers also stimulate customers to spend by placing small items near the cash register. A hardware store might use such a location to display batteries; a clothing store might similarly display pins, belts, or scarves.

Make It Easy To Find Goods

"You can tell if there's a problem if people aren't seeing the product they want," Gatto says. "Concentrate on how they like to mosey around and shop."

Gatto's Cycle Shop is divided into separate showrooms by product categories, such as kids' bicycles or Harley-Davidsons. But displays also highlight products from other areas.

Retailers often have to make a trade-off, Weitz says. For example, it's more convenient for supermarket customers if a deli is at the front of the store, he says, but some markets place it in the rear to stimulate sales. The ideal, according to Weitz, is "try to stimulate multiple-item sales without making it difficult."

Create An Image Or A Feeling

"From the front door, you want to say what kind of store it is, what the product is, and what the price is," says Mark Bradin, of the Walker Group/CNI, a New York retail-design consulting firm.

Image was in Gil Klein's mind in the '70s when he designed Gil Klein TV & Appliance, in Fairview Heights, Ill. Klein put the service department in a prominent location to the left of the entrance "to put the customers at ease," he says.

McKay's Bakery uses light fixtures from the '20s, wood floors, and pink walls to create a warm feeling, says Green, the co-owner. Vents carry the smell of fresh-baked goods from the kitchen.

Green implemented the layout in October 1993 and credits it with the store's doubled sales rate in 1994.

Design fees range roughly from $4.50 to $6.50 per square foot, depending on the scope of work and detail, says Steven Hill, Green's designer. Calculations may also be based on a percentage of the construction cost (typically 7 to 12 percent).

Another approach is the flat fee, says Robert Ceretti, president of the Institute of Store Planners, in Tarrytown, N.Y., and of R. Ceretti Associates of New York. Owners of small start-up stores may pay more for more on-site supervision than experienced retailers want.

But not everyone needs an expert. "By simple trial and error," Bradin says, "retailers can arrive at a good plan."

For More Information

For more on store layouts, consult:

* Institute of Store Planners, 25 N. Broadway, Tarrytown, N.Y. 10591; (914) 332-1806. It publishes a free directory that describes its 80 member firms.

* Visual Merchandising and Store Design. This monthly magazine costs $39 per year. Order from S.T. Publications, Inc., 407 Gilbert Ave., Cincinnati, Ohio 45202; (513) 421-2050.

* Store Planning/Design: History, Theory, Process, by Lawrence J. Israel, chairman emeritus of the Walker Group/CNI. This book on the history, theory, and practice of retail store design focuses on large stores, but much is applicable to small retailers. Cost: $39.95. Order from John Wiley & Sons, 1-800-CALL WILEY, or 1-800-225-5945.