design:retail - May 2019 - TR3

Space Management Considerations
ONCE CUSTOMERS ENTER the domain of brick-and-mortar stores,
it's crucial for retailers to captivate their customers-especially in
the digital age of online shopping in which consumers can easily
purchase and ship an item they see in-store from their mobile devices.
Even so, in-store shopping accounts for an estimated $2.5 trillion or
87% market share compared to online shopping's 13%, according to
Matthew Wood, president of Off the Wall Co., a store design and décor,
and fixture and display manufacturer. As such, retail spaces need to be
stimulating and attention-grabbing. However, a major challenge for
retailers in this effort is the fact that stores are getting smaller, and the
number of outlets is shrinking even as retail value sales are growing.
Consumers are cutting back on the number of trips and doing more
big-box, one-stop shopping trips or shopping online, according to the
Industry Size & Composition study.
As a result, retailers and brands are asking how they can shrink
footprints within brick and mortar establishments and still focus on a
targeted product mix for the consumer. "Ensuring that our footprint
is smaller and specific to customer needs establishes brand and retail
loyalty," says Cheryl Lesniak at Frank Mayer and Associates. "This also
makes it easier to shift focus from trying to sell customers on an item
they already know that they want, to upselling them on upgrades and
add-ons."
The implications for retailers and merchandisers planning the physical
store environment include: a reduced amount of floor space for
displays; more effective displays that do more with less; fixtures that
maximize space utilization; and a greater number of portable, movable,
and/or adjustable fixtures (see graphic below).

SHRINKING RETAIL
FOOTPRINTS

SHOPPER MARKETING
* Less room for displays
* Displays that are included
need to be even more
effective, do more with less.

STORE FIXTURES/VISUAL
MERCHANDISING
* Fixtures needs to maximize
space utilization and do more
with less
* Portable, moveable and/or
adjustable fixtures are
increasingly important.

Valuable floor space in stores means that displays must adapt to the
needs of retailers and possess a smaller footprint as well. Additionally,
the process of refreshing, remodeling, and redesigning of stores is
happening faster than ever before-and successful retailers are
the ones who have the ability to change rapidly. According to the
Industry Size & Composition study, the effects of this trend on shopper
marketing and fixtures is significant and includes:
* Increased demand for turnkey solutions (manufacturer that can offer
design, engineering, manufacturing, shipping/logistics, and setup.)
* Potential for more/less display adoption depending on retailer
choices.
* Higher demand for fast, turnkey solutions
* Increased pressure to anticipate trends

With the pressure to remain agile and fresh with merchandising, it's
important that organization of the floor and clarity of visual displays
isn't sacrificed for novelty. If the process of finding a product becomes
difficult, customers will be turned off and may not return.
For example, Eric Chiang, co-founder of Perfect Fit Meals, explains
that his brand's food products are best displayed using vertical
fixtures with horizontal push racks that the company sources from
fixture manufacturer, Trion Industries Inc., which offer a streamlined
appearance, efficient use of space, and ease of restocking. The
verticality of the rack provides shoppability, browsing, and tight product
spacing, while the horizontal tray provides auto feed, forwarding and
facing to support sales. Additionally, the trays lift out to rearrange or
restock in a matter of seconds.
Without them, Chiang says the product may end up looking like the
bargain catch-all DVD bins in big box retail stores, or piles of clothes
scattered throughout shelves and racks during Black Friday that have
little to no organizational value. "People don't want to shop through
that [mess], unless you happen to be a particular type of person that
likes to deal hunt, essentially," Chiang observes. "Most people want to
see a particular product displayed neatly and clearly, and have access
to that product quickly. In grocery stores, especially, space management
is going to be crucial; you want customers to find what they need and
to find it quickly," he adds.
With that in mind, a thoughtful store layout using proper space
management techniques can have a tremendous impact, even in
smaller retail spaces. According to Wood, customers tend to move
counterclockwise through a store, "which means any display just to
the right of the door is premium space. Shoppers will pay attention
to displays located here, so make sure the displays are stocked with
high-profit items." Additionally, Wood says another effective tactic is to
place staple items as far away from the front door as possible. "Make
customers travel throughout the space to find basic items-milk and
eggs if it's a food store, or paper and printer ink if it's an office store.
This way shoppers will see many other items to buy before they spot
what they came in to purchase."

2017 Shop!
Standards:Solutions
Store Redesign
2018 ROI
Merchandising
: Space Management & Fixture Considerations to Maximize ROI

3



design:retail - May 2019

Table of Contents for the Digital Edition of design:retail - May 2019

design:retail - May 2019
Contents
From the Editor
Industry Insider
Happenings
Design Detail: The House of Rohl
Design Innovation: Jins Eyewear
How’d They Do That?
Brand Immersion: Pewter Store
Perspectives: Swipe Right
Hands On: Ted’s World of Imaging
Clicks & Mortar: Tamara Mellon
Perspectives: Empowering Retailers
Perspectives: Empowering Retailers
40 Under 40
2019 Markopoulos Award Winner
Sneak Peek of Globalshop @ Retailx
Moment
design:retail - May 2019 - Intro
design:retail - May 2019 - CT1
design:retail - May 2019 - CT2
design:retail - May 2019 - design:retail - May 2019
design:retail - May 2019 - Cover2
design:retail - May 2019 - 1
design:retail - May 2019 - Contents
design:retail - May 2019 - 3
design:retail - May 2019 - 4
design:retail - May 2019 - 5
design:retail - May 2019 - From the Editor
design:retail - May 2019 - 7
design:retail - May 2019 - Industry Insider
design:retail - May 2019 - 9
design:retail - May 2019 - Happenings
design:retail - May 2019 - 11
design:retail - May 2019 - Design Detail: The House of Rohl
design:retail - May 2019 - 13
design:retail - May 2019 - Design Innovation: Jins Eyewear
design:retail - May 2019 - How’d They Do That?
design:retail - May 2019 - Brand Immersion: Pewter Store
design:retail - May 2019 - RXCover1
design:retail - May 2019 - RX2
design:retail - May 2019 - RX3
design:retail - May 2019 - RX4
design:retail - May 2019 - RX5
design:retail - May 2019 - RX6
design:retail - May 2019 - RX7
design:retail - May 2019 - RXCover4
design:retail - May 2019 - Perspectives: Swipe Right
design:retail - May 2019 - Hands On: Ted’s World of Imaging
design:retail - May 2019 - 19
design:retail - May 2019 - Perspectives: Empowering Retailers
design:retail - May 2019 - 21
design:retail - May 2019 - Perspectives: Empowering Retailers
design:retail - May 2019 - 23
design:retail - May 2019 - 24
design:retail - May 2019 - 25
design:retail - May 2019 - 40 Under 40
design:retail - May 2019 - 27
design:retail - May 2019 - 28
design:retail - May 2019 - 29
design:retail - May 2019 - 30
design:retail - May 2019 - 31
design:retail - May 2019 - 32
design:retail - May 2019 - TRCover1
design:retail - May 2019 - TR2
design:retail - May 2019 - TR3
design:retail - May 2019 - TR4
design:retail - May 2019 - TR5
design:retail - May 2019 - TR6
design:retail - May 2019 - TR7
design:retail - May 2019 - TR8
design:retail - May 2019 - 33
design:retail - May 2019 - 34
design:retail - May 2019 - 35
design:retail - May 2019 - 2019 Markopoulos Award Winner
design:retail - May 2019 - 37
design:retail - May 2019 - 38
design:retail - May 2019 - 39
design:retail - May 2019 - 40
design:retail - May 2019 - 41
design:retail - May 2019 - 42
design:retail - May 2019 - 43
design:retail - May 2019 - Sneak Peek of Globalshop @ Retailx
design:retail - May 2019 - 45
design:retail - May 2019 - 46
design:retail - May 2019 - 47
design:retail - May 2019 - 48
design:retail - May 2019 - OPCover1
design:retail - May 2019 - OP2
design:retail - May 2019 - OP3
design:retail - May 2019 - OP4
design:retail - May 2019 - OP5
design:retail - May 2019 - OP6
design:retail - May 2019 - OP7
design:retail - May 2019 - OP8
design:retail - May 2019 - OP9
design:retail - May 2019 - OP10
design:retail - May 2019 - OP11
design:retail - May 2019 - OP12
design:retail - May 2019 - OP13
design:retail - May 2019 - OP14
design:retail - May 2019 - OP15
design:retail - May 2019 - OP16
design:retail - May 2019 - OP17
design:retail - May 2019 - OP18
design:retail - May 2019 - OP19
design:retail - May 2019 - OPCover4
design:retail - May 2019 - 49
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design:retail - May 2019 - 51
design:retail - May 2019 - 52
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design:retail - May 2019 - 55
design:retail - May 2019 - Moment
design:retail - May 2019 - Cover3
design:retail - May 2019 - Cover4
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