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Abstract
The purpose of this study was to research retail layout of a local supermarket. The five concepts of retail layout were used to determine if the supermarket was achieving an effective layout. To accomplish this study, we applied previous studies, conducted interviews, and made use of the store for our own research. After discovering that the local supermarket needed some improvements, recommendations were made to improve the supermarket from the customers' point of view. The other objective of our study was to determine if the supermarket utilised floor space to maximise profitability per square foot. Our findings helped to verify whether the supermarket implemented an appropriate layout.
Keywords: Layout, retail, outlet, Operations, High-draw, and Items,
Introduction
For an effective retail layout, it is important for a store to offer a variety of products in a positive manner. The main objective of retail layout is to maximise profitability per square foot of floor space.
The purpose of our study was to determine if a local retail outlet utilised the floor space appropriately. We also analysed how well the store emphasised the retail layout rules of thumb. These guidelines are:
1. Locate the high-draw items around the periphery of the store.
2. Use prominent locations for high-impulse and high-margin items.
3. Distribute what is known in the trade as "power items" to both sides of an aisle and disperse them to increase the viewing of other items.
4. Use end-aisle locations for high exposure rate.
5. Convey the mission of the store by careful selection in the positioning of the lead-off department.
We researched by reviewing other studies and interviewing the store manager to assist in our own findings. Based on these findings, conclusions were made and recommendations on how the store can improve placement of departments to add convenience for the customers were prepared.
Functions of Layout
Functions of layout are as follows:
1. Offer appropriate space for display and examination. The layout must be used to place each department in the location best suited to the sales needs of the individual department. An effective arrangement places merchandise in locations where it receives more or less automatic display, provides adequate space for examination, and locates service equipment as to aid in controlling the flow...