Semester Thesis Project
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The document outlines a comprehensive study on smart retail design in India, examining existing models, customer behavior, and layout design through experiments and interviews. It highlights key findings on the effective arrangement of merchandise categories to enhance shopping experiences and maximize store communication. Recommendations for future work include developing solutions for space constraints faced by smaller retailers and further validating the study's findings.
Semester Thesis Project
- 1. Exploring design avenues for smart retail space in India Project Guide: Prof. Pradeep Yammiyavar Semester Thesis Project|Department of Design Arushi Singh | Mdes |134205006
- 2. Project Proposal Study of existing models Background Research Research + Data Collection Study on Layout, Management & Traffic, Interviews, Contextual Inquiry, Study Customer Behavior in Indian Context Conduct Experiments to understand factors affecting retail design layout Data Analysis , Creation Of Heuristics, Ideation APRIL MARCH FEBRUARY JANUARY Timeline
- 3. Aim Objectives To study and analyze shopping w.r.t. parameters like space, vision, movement in a retail environment. To decipher the relationship between the various parameters. To maximize in store communication for ultimate shopping experience. To develop solutions to cater to the growing customer base.
- 4. Understanding Need SPACE MERCHANDISE FOOTFALL
- 5. Methodology Understanding the Retail Environment & its challenges Grouping Problems and Issues Attempt to design a layout solution Simulate walkthroughs using 3D software Testing and User feedback Literature Study, Ethnography, Documentation, Experience Learning
- 6. Big Bazaar: A Study •Grid display •Easy Movement •Attractive Family of Fixtures Footfall: 1000(normal days) 5000(on occasions) Display: Crocodile bins Peg hooks Bins Special zonal Displays Layout Third Floor(Not to Scale)
- 7. Crocodile Bins Peg Hooks Bins Shopping Guides Special ambiance and displays in specific zones
- 8. Vishal Mega Mart: A Study •Decent Quality in Cheap Price •Extensive use of Bins •Very less moving space Footfall: 700 to1000(normal days) 5000 and above (occasions) Displays: Bins(big, small, ramp)(height: 3ft) Gondola Racks(height: 8ft) Layout Ground Floor(not to scale) Ramp bins Gondola Display large bins
- 9. HUB Mall: A Study Layout First Floor mart(not to scale) •Maximum products in small area •Limited stock •Smaller aisles Footfall: 300(normal days) 1000(on occasions) Display: Gondola displays (wall display, height: 7ft Central display, height: 5ft) Peg Hooks
- 10. Observation Line of Sight Systems of Display Flow Management Personal Space Ambient Environment
- 11. Experiment: Aim: To understand the parameters influencing the designing of store layouts by store managers Task: Store Managers and Visual Merchandisers were asked to layout a given set of merchandise categories in a fixed area for Guwahati City. Fixed Parameters: Area shape and size, Merchandise Broad Category, Store Entry/Exit Variable Parameters : Merchandise line up within categories, cash counters
- 12. Set up Food Home Fashion Vegetables and fruits Furnishing Women's wear casual Chocolates and candies Luggage formal Beverages Home fashion party Staples & Pluses Utensils night wear/ inner wear Frozen food Personal care packaged food(FMCG food) Home care Men's Wear casual Crockery formal Gadgets party Electronics night wear/ inner wear Toys and games Fashion Accessories watches Stationery belts Plastics sunglasses Beauty Kids wear Set up for the experiment comprised : •set of Merchandise line up. Under the Broad Categories of FOOD, HOME and FASHION(they were color coded yellow, blue and pink respectively), 4 cash counters •Area Board with given Entry and Exit Merchandise
- 13. Experiment Sample 1: Mukesh Sharma, General Manager, HUB Mall Floor Area: 8281 sq. ft. Broader Merchandise categories: FOOD, HOME, FASHION
- 14. Free Flow & Grid Layout Experiment Result 1
- 15. STATEMENT/ACTION INFERENCE Beauty, Party wear, gadgets placed near entrance The front facing zones are aesthetically appealing and attractive Singular Entry/Exit is preferable Single Entry/Exit gives better safety and less manpower for handling Women’s wear is kept near the entrance Women form a large number of customer base Kids wear is near women’s wear Mother’s usually shop for children Electronics and luggage/travel are near to men’s wear Men prefer browsing through gadgets and other bulky items Wanted to keep toys and games near to kids wear but space didn’t permit All products targeted at a particular customer are clubbed together Cafeteria is facing outside Gives a better view of high street. Customer can chill can shop all together. Casual wear is placed so that it blocks the trial room Trial room is always hidden in a corner or elsewhere from general view Trial room is near to innerwear and night wear section People don’t like to carry innerwear and night wear and walk to trial room A separate area is defined for trolley movement Customer’s wouldn’t wish to carry bulky trollies inside the complete store. In fact, in the apparel section only shopping bags are used if necessary Home fashion and furnishing is close to women's section Women shop for these merchandise End caps are used for promotions End caps are eye catching as they are close to where the customer takes a turn thus making it imperative to glance at it. If a product is not available at the warehouse and a regular customer is asking for it, it is brought from the market immediately For smaller stores, flying customers are lesser than the regular ones, it is thus imperative that the customer retentively is maintained
- 16. STATEMENT/ACTION INFERENCE Our focus is not primarily toward VM, yet we do keep it in our priority The Indian Consumer is yet to understand Visual Merchandising A lot of customer come and try and purchase the merchandise online E-Commerce poses a severe threat to the retail industry A lot of merchandise currently in the market arrives in North East late. Regional limitations in providing the customer the best experience There are major labour issues in the region because of which the supply chain is often disrupted Regional limitations in providing the customer the best experience We know our clientele personally It is important to give a personal touch to maintain customer loyalty and retentively. We choose the product line keeping the customer in mind The Customer’s taste and needs will determine the merchandise in the store We keep maximum products on the shelves so that the store communication is maximum Larger merchandise on display has a positive effect on the customer buying behavior We often get complaints that a particular flavor of jam or pickle is missing Indians are very particular about the merchandise they wish to buy As we interact with our customers on a regular basis we get a fair idea of the current buying trends It is important to be aware of the latest products and be at the same frequency as your customer New product launched are often given end cap regions as they attract maximum attention New products need to be highlighted The products with larger packages and bigger labels(like cornflakes) are kept on higher shelves so that they are visible Product packaging influences the planogram.
- 17. Experiment Sample 2: Shyam Kumar Singh Store Manager, Big Bazaar Floor Area: 8281 sq. ft. Broader Merchandise categories: FOOD, HOME, FASHION
- 18. Experiment Result 2 Grid Layout
- 19. STATEMENT/ACTION INFERENCE First higher margin products were laid out To make a profitable business in a small place a tradeoff is needed in terms f rate of sales and profit margins on a product Woman’s apparel is kept near entrance Women form a large number of customer base Consumer Service Desk(CSD) is kept near the entrance Gives better access Chocolates and candies are nearer to the entrance in high visibility Low cost impulse goods are placed near the check out counters Gadgets are kept near entrance Customer enjoy glancing through gadgets in display Beauty /accessories placed near entrance These have attractive displays and are often impulse buys Cash counters are away from the entrance This reduces accumulation of crowd near the entrance. Home fashion/ Furnishing is given a priority over other home category merchandise These products have larger margins Kids wear is near women’s wear Mother’s usually shop for children Chocolates and Beverages are kept near the entrance Often customers enter the store and feel like eating
- 20. Experiment Sample 3: Priyamboda Konwar Visual Merchandiser , Sohum Shoppe Floor Area: 8281 sq ft Broader Merchandise categories: FOOD, HOME, FASHION
- 21. Grid Layout Experiment Result 3
- 22. STATEMENT/ACTION INFERENCE Focal Point is made near the entrance The customer is attracted to enter the store and check out merchandise The customer will move in CW direction inside the store The circulation is considered CW in the Indian Scenario. Men’s wear is kept before women’s Men usually don’t look around so it is advisable to make their goods easily accessible Kids wear is near women’s wear Mother’s usually shop for children Crockery, gadgets placed near entrance The front facing zones are aesthetically appealing and attractive Stationery & Toys are clubbed together They are usually shopped for children by their parents Women’s wear is close to crockery and utensils Women are the primary customers of both merchandise Home furnishing is preferred over fashion In this context, It gives better margins High priced garments are in focused display They are usually more attractive and make good profits if sold Sohum has shop in shop designs Shop layouts and planograms depends on the brand policies The brands are swapped to prime locations if sales are falling Location in layout majorly affects sales
- 23. Inferences: Parameters influencing store layouts Store shape and area Profit Margins of product Product Footprint Footfall Rate of sales of products Business model Warehouse and storage Circulation Area Offers and Promotions Packaging Impulse Purchase Aesthetic Appeal of merchandise display Product Bulkiness Pilferage & Leakage Cross merchandising Target Customer Seasonal Merchandise Accessability of products Checkout and payment zone Fixtures Irremovable facilities Customer Behaviour Regional Influences Trolley Movability Market Trend Circulation Direction Store Security Customer Comfort Ambient illumination Ambient sound Ambient smell Signages and Store Communication Category of Merchandise
- 24. Affinity Diagram: Footfall Warehouse and storage Circulation Area Space Design Store shape and area Product Footprint Product Bulkiness Pilferage & Leakage ambient illumination ambient sound ambient smell Accessibility of products Checkout and payment zone Fixtures Irremovable facilities Trolley Movability Circulation Direction Store Security Customer Comfort Category of Merchandise Profit Margins of product Rate of sales of products Business model Offers and Promotions Marketing Packaging Cross merchandising Target Customer Seasonal Merchandise Market Trend Category of Merchandise Psycological Behaviour Offers and Promotions Packaging Impulse Purchase Aesthetic Appeal of merchandise display Target Customer Seasonal Merchandise ambient illumination ambient sound ambient smell Customer Behaviour Regional Influences Market Trend Signage's and Store Communication
- 25. Dependency Matrix 33x33 KEY (scale of 0 to 9) Strong Dependency (>6 to <=9) Medium Dependency (>3 to<=6) Low Dependency (>0 to <=3)
- 26. Factors influencing store layouts(Macro level) Mapping dependency of X on Y Factors wrt customer , store managers Store shape and area Profit Margins of product Product Footprint Footfall Rate of sales of products Business model Warehouse and storage Circulation Area Store shape and area 1,8 NA Purchase appropriate property Shelf space for each product is determined by store area How close the the storage surplus can be replenished easily Profit Margins of product 3,7 Determine a profit making B-plan by choosing appropriate merchandise. Profit per unit area NA Eg. Vishal’s profit margins are low they make bulk profits Expensive and exclusive pruducts will not be in the warehouse Product Footprint 4,5 Determines volume of product line Product Footprint decreases as Profit Margins increases NA Footfall 4,8 Determines the crowd handling capacity Improve footfall to increase sales As footfall increases more product needs to be stocked on the shelves. NA Rate of sales of products 2,7 Volume of products on display and in the warehouse Increase rate of sales for merchandise NA Business model 1,4 Business strategy & merchandise line up Manupulate business model to gain max profit NA Warehouse and storage 0,7 Display area & surplus handling capacity Low profit low sales products may not be stocked NA Circulation Area 6,5 NA Circulation may be manupulated to increase impulse purchases NA
- 27. Customer's Perspective Profit Margins of product Strong dependency medium dependency weak dependency Product Footprint Footfall Rate of sales of products Business model Warehouse and storage Circulation Area Offers and Promotions Packaging Impulse Purchase Aesthetic Appeal of merchandise display Product Bulkiness Pilferage & Leakage Cross merchandising Product Bulkiness Seasonal Merchandise Trolley Movability Customer Behaviour Accessability of products Fixtures Irremovable facilities Checkout and payment zone Irremovable facilities Regional Influences Category of Merchandise Market Trend Circulation Direction Product Bulkiness Store Security Customer Comfort ambient illumination ambient sound ambient smell Store shape and area ER Diagram: Customer’s perspective
- 28. Store Manager's perspective Strong dependency medium dependency weak dependency Product Footprint Packaging Profit Margins of product Warehouse and storage Rate of sales of products Business model Pilferage & Leakage Offers and Promotions Circulation Area Footfall Impulse Purchase Aesthetic Appeal of merchandise display Product Bulkiness Cross merchandising Target Customer Seasonal Merchandise Accessability of products - Checkout and payment zone Fixtures Irremovable facilities Customer Behaviour Regional Influences Trolley Movability ;;; Category of Merchandise Market Trend Circulation Direction Store Security Customer Comfort ambient illumination ambient sound ambient smell Store shape and area ER Diagram: Store Manager’s Perspective
- 29. Profit Margin(increasing) Rate of sales(decreasing) purchased in week/month/year Home fashion Candies and chocolates Furnishing Beverages Electronics veggies & fruits Gadgets processed food Luggage & Travel frozen food Beauty staples & pluses Fashion accessories Personal Care Crockery Stationery Utensils Home Care Toys & Games Plastics Women's apparel Utensils Men's apparel Crockery Kid's apparel Toys & Games stationery Women's apparel Plastics Fashion Accessories Home Care gadgets Personal Care Kid's apparel Candies and chocolates home fashion Beverages furnishing veggies & fruits Men's apparel processed food beauty frozen food luggage Approximate Rating of Merchandise Value in terms of sales Environment Dependency matrix
- 30. Area : 2000 sq.ft. High Street All-in-All Store Target Customer: Women USP: A one stop shop for women Layout: Mix of grid and free flow layout Merchandise Line up Food: Cafeteria Processed /Beverages/Staples/(only some time of the month) Home: Home Fashion Fashion: Women’s Apparel Sample Layout Entry/Exit Trial Rooms Women’s apparel Transit Displays Home Fashion Cafeteria self rendered image
- 31. Accessories Plan
- 32. Fashion Zone self rendered image
- 33. Choice of merchandise Reason Home Fashion Has good margins. Can be displayed all across the store Women’s Apparel Always in demand, women are great shoppers, cafeteria and home fashion would also do good sales Cafeteria(Permanent) It will be a one stop for a gang of girls to come and chill Processed Food On transit wall can be replenished as per need Area Distribution: Food 10% Fashion 50% Home 40%
- 34. Aarti goes to the superstore for her weekly shopping. She loves burbon biscuits, but she doesn’t find it in the store, so next time she goes to another store for shopping Two shoppers are moving in the opposite direction they get stuck at a narrow passage. Other people coming from behind also become a part of this jam. Scenarios: Scope of solution 1. 2.
- 35. 35 Tania only uses silky shampoo of brand X, she is unable to find it in the front row of the displayed merchandise so she digs deeper in the shelf to find exactly what she needs. But in the process she drop a lot of other merchandise A store employee is refilling the shelf with biscuits. A customer walks past and want to see the products on the shelf. But she cannot as there is no space to move and chooses to walk away without purchasing . 3. 4.
- 36. Solution Scope SMART SPACES EFFICIENT SHELVING TECHNOLOGICAL INTERVENTION
- 37. Ideation Morphing Store Seasons Time of the day Shop in shops Offers Sensory Appeal Aroma zones Lifestyle zones Customer Comfort EFFICIENT SHELVING Decrease product footprint Space saving shelves Shopping inventory Virtual Stores Smart shelves SMART SPACES Fixed/ transforming Zones TECHNOLOGICAL INTERVENTION
- 38. = #1 Creating Artificial Volume : mirrored shelves or real life posters
- 39. The basic idea is to reduce the amount of space a product consumes on a shelf, thus reducing its footprint. Thus we need to create an artificial volume of the product to make more sales. Customers wouldn't find it appealing if only few merchandise is displayed The stock that is sold everyday can be stocked on the shelf while the surplus can be in the warehouse. Advantages: Less shelf space consumed. Disadvantages: If rate of sales are high it will need replenishing frequently. self rendered image “Jo dikhta hai wo bikta hai”
- 40. #2 Reducing Storage Space Combining the warehouse in display stock self rendered image
- 41. Advantages: •No space consumed by store employees for refilling •Simple mechanism low on maintenance •At a time a small amount of product is always visible to the customer •Fresh stock is loaded at the rear and new old stock is consumed from the front Disadvantages: •Small section of store space is wasted. •Difficult to use for bulky products Similar mechanism for circular bottle prone to breakage
- 42. Conclusion A heuristic was developed to understand the interdependency of various parameters influencing retail design. The influence of parameters was studied varying them. Designers can follow these heuristics to satisfy the needs and requirements of store managers and users alike. The relationship between consumer behavior and economics was drawn. The derived heuristics were checked by attempting a sample design layout.
- 43. Future Scope of Work The is a vast scope of taking the findings of the report further. •A model can be developed by taking a larger sample and by further authenticating and validating the findings. •Some concrete ideas can be generated to solve the space crunch being faced by the smaller retailers.
- 44. References Books: Barry Berman,Joel R. Evans, Mini Mathur.Retail Management.Pearson Publication Paco Underhill.Why We Buy.Simon & Schuster Publication Martin Lindstorm.Buy-ology.Business Books Rama Bijapurkar.We are like that only. Penguin Books A J Lamba.The Art of Retailing.Tata McGraw Hill Tony Morgan.Visual Merchandising.Laurence King Publishing Viklma Barr, Katherine Field.Stores: Retail Display and Design.PBC International Inc. Swati Bhalla, Anuraag S.Visual Merchandising, Tata McGraw Hill Education Ernst & Peter Neufert, Architect’s Data, Blackwell Science Lynne Mesher.Retail Design, AVA Publishing Luis C.Mejia, Mark Jeppi, Effect of merchandise space allocation on retail sales in enclosed shopping centers
- 45. Journal Papers: IBM/NRF Store of the future survey,2003 Indian Retail: Time to change lanes, KPMG 2009 Norm Borin, Paul W. Farris , James R. Freeland, 1994, A Model for Determining Retail Product Category Assortment and Shelf Space Allocation Debasidh Mukherjee, Hemant Kalbag, 2011, The case for Compact hypermarkets in India Karla Martin, Ash Notaney, Johan Sauer, Marcelo TauThe New Scarcity of Retail Space How “Smart Allocation” Is Changing the Landscape. Masao Ohta, and Yoshiyuki Higuchi,Study on the Design of Supermarket Store Layouts: The Principle of “Sales Magnet”, World Academy of Science, Engineering and Technology Vol:7 2013-01-26 Zac Anesbury , John Dawes , Rachel Kennedy ,Magda Nenycz-Thiel , Supermarket Shelving: A Conceptual Paper on the Value of Shelf Position PEDRO M. REYES, GREGORY V. FRAZIER, Initial Shelf Space Considerations at New Grocery Stores: An Allocation Problem with Product Switching and Substitution References
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