Nexgen Marketing posted on March 25, 2021

As changes in consumer landscape continue to shape the retail industry, its primary goal remains the same-deliver value in the supply chain and create unique customer experiences. One way to achieve this is to design a retail environment that captures the attention of customers. To design an innovative retail environment, a brand often relies on store layout and floor planning. Layout is an important strategy for retail success. Retailers use layout to influence customers' behavior by designing the store's flow, merchandise placement and ambiance. Layouts are also helpful in estimating revenue per square foot as well as assessing the strengths and weakness of a firm’s merchandising mix.

Benefits of store layout:

1. Determine and influence consumer’s shopping pattern

It is a proven fact that how a store is designed has a huge impact on customer’s shopping behavior. The longer a customer spends time in a store, the more they are likely to purchase. Hence retailers utilize every opportunity available to increase purchase time. For example, most retailers position necessities such as milk, bread, and eggs towards the back of the store in an attempt to force customers to navigate through other merchandise to get them. No just that the placement of elevators, arrangement of fixtures and even the placement of departments can affect a store's traffic.

Additionally, the right layout can create a logical flow of products for customers. Not focusing on store layout can result in products and aisles being messy and unorganized- causing customers to switch to other alternatives. Therefore, retailers aim to create a store layout that allows customers to see all the products and keeps them at a pace that allows them to browse products that they might want to buy.

2. Optimize available retail space

Considering the limited amount of space available to a retail store, optimizing every inch of it is beyond critical for the success of any brick-and-mortar store. With the right store design and floor layout retailers can be assured that optimum space is allocated to each brand based on its selling potential and customer demand. So, if a specific area is lacking in sales, the retailer can re-arrange merchandise to meet sales goals. For example, a high price mobile phone will be merchandised alongside low-priced accessories. Here, the high-priced items will be allotted more space while low priced items will be stacked on a fixture next to these to increase the sale of both items.

3.Create a positive store atmosphere

Every retailer wants customers to feel comfortable and at ease while shopping so that they reflect the same sentiments to the items they intend to buy. A store layout can directly impact the emotions invoked in a shopping experience. Even a store with great interiors can ruin shopping experience of customers if they do not focus on the right layout.

For example, too tall or too low shelves can make a customer’s shopping experience extremely unpleasant. Similarly, too crowded, or narrow aisles can make people claustrophobic while too wide aisles can leave them uninspired and bored. On the other hand, a well-balanced layout where merchandise is clearly visible can eliminate shopper confusion making them want to stay longer.

Role of planograms in designing the right layout

For retailers who wish to make optimal use of their resources, retail space planning plays a vital role. Retailers worldwide believe that planograms are the ideal tools for getting an idea of how a store can be designed and how products will be merchandised throughout the space. Planogram is a visual merchandising tool used by retailers to plan, develop, and implement a store’s merchandising strategy. It provides diagrammatic representation of the store layout, assisting retailers in appropriate product placement for increased visibility and sales.

Planograms help retailers in optimizing space and maximizing sales. Optimized planograms in terms of layout will enhance the shopper’s experience when browsing a category. For any business that deal with people, product and spaces, planograms are essential. Additionally, planograms help create consistency between store locations, improve visual appeal, and offer product pairing suggestions. Irrespective of the size of a store, retail shelf space is limited and as such planograms are ideal in planning out and maximizing space.

Overview of Nexgen POG

Nexgen POG is a robust cloud-based visual merchandising tool designed for quick and easy planogramming. Planograms can be designed by easily dragging and dropping the products. It is also equipped with vast array of features including customizable templates, multi-device compatibility, easy compliance, manual and automated modes among many others-thus making Nexgen POG a preferred choice among brands worldwide.

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