PRINCIPLES OF STORES
BY – CHANDNI BHATT (283009)
ARBAAZ KHAN (283019)
INDRANEIL MUKERJEE (283035)
HARITHA SINGH (283054)
STORES LAYOUT AND PRINCIPLES OF STORES
INTRODUCTION- STORES LAYOUT AND DESIGN
It means the design of a store's interior to encourage people to enter the store
and expose them to the maximum variety of merchandise within the space
available. For example, some stores have the fresh fruit and vegetable display at
the entrance because it is colorful and will attract people in while other stores
have fresh foods and other frequently bought items which are located inside the
store so people will be exposed to all the other displays when locating them.
Store layout needs to guide the customer silently about where he/she wants
to go and for exposing him/her to the entire store offering. (The store itself it’s
the most meaningful communication between the retailer and the customer)
The stores activity has characteristics of non value added activity. It is
essential to have a better look at the design of the stores layout and facilities.
Better managed stores are laid out in better style. There is no unique approach or
design for a store. Stores come in all sizes, shapes and configurations depending
on the need and circumstances.
There is no uniquely ideal manner to design all stores. In view of objectives,
the correct proportion depends on the situation and on the experience and
knowledge of the designer. It has to be kept in mind that the stores layout is not
like any other office layout. Office layout can be changed on and often but
changing the stores layout is costly matter. So proper thinking is required before
CHARACTERISTICS OF STORES LAYOUT
Location of stores difficult to change – The location of stores once taken
cannot be easily changed. The reason being it is costly to change the
storage location at a latter stage. Therefore, it should be decided and
planned so as to ensure maximum efficiency.
Optimal location of stores – The optimal location of stores minimizes the
total transportation, handling and other costs related to stores operation
and at the same time provides the needed protection for stores items. The
models of facilities planning can be applied to determine the optimal
location of storage in large size organizations.
Stores location dependent on several factors – Location of stores depends
upon various factors such as the nature and value of items to be stored and
the frequency with which the items are received and issued to the different
departments. Other important factors to be considered are the number
and location of end users, variety and volume of goods to be handled,
location of central receiving station and accessibility to rail or road links.
Futuristic outlook – The location and building up of stores should be done
with a futuristic outlook. The provision for the new departments and the
increase in the volume to be stored, should be kept in mind.
Stores located close to point of use – In general, the stores are located to
the point of use. Raw materials stores are usually located near the first
operation. In process stores are located near to subsequent operation, and
finished goods stores are located near the shipping area. The tools and
supplies stores are located centrally to the personnel and equipment
LAYOUT AND DESIGN OF STORES
The efficient layout and design of stores is very important from the point of view
of its working, which is linked to the overall functioning of the plant. A good
layout must be as follows –
To achieve minimum waste of space and flexibility of arrangement.
Supplying right material to production as and when required.
Ensure easy movements of the material handling equipments.
Minimize the material handling requirements.
Minimize the material deterioration and pilferage.
SUITABILITY OF STORES LAYOUT
While planning the layout and design of the stores, following factors should
be considered –
The space for receipt and inspection should be provided adjacent to the
Use of third dimension must be made effectively. Different storage facilities
should be situated in clearly defined lanes, so that items are quickly stored
Main lanes should be 1.5 to 3 meters wide depending on the type of
material and amount of traffic involved.
Clear markings should be made at storage space to facilitate location and
The fast moving items should be stored near the dispensing window, the
slow moving should be away from the window.
FEATURES OF STORES 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
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
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.
Make It Easy To Find Goods
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.
CONSIDERATIONS FOR STORES LAYOUT
Considerations need to be taken to ensure effective and proper layout and
design of stores. The considerations are as follows -
High margin items should be placed in high traffic areas.
High demand items should be placed in low traffic areas.
Complementary items should be placed near each other.
Seasonal needs should be considered.
Items needing frequent restocking should be placed near storerooms or
Larger departments should be placed in lower traffic areas.
Shopping behavior and operational considerations should be recognized.
TYPES OF STORES LAYOUT
A well-planned retail store layout allows a retailer to maximize the sales for each
square foot of the allocated selling space within the store.
Store layouts generally show the size and location of each department, any
permanent structures, fixture locations and customer traffic patterns.
Each floor plan and store layout will depend on the type of products sold, the
building location and how much the business can afford to put into the overall
Below are a few basic store layouts –
Straight Floor Plan
Straight Floor Plan
The straight floor plan is an excellent store layout for any type of retail store. It
makes use of the walls and fixtures to create small spaces within the retail store.
The straight floor plan is one of the most economical store designs.
Diagonal Floor Plan
Diagonal Floor Plan
The diagonal floor plan is a good store layout for self-service types of retail stores.
It offers excellent visibility for cashiers and customers. The diagonal floor plan
invites movement and traffic flow to the retail store.
Angular Floor Plan
Angular Floor Plan
Angular floor plan is best used for high-end specialty stores. The curves and
angles of fixtures and walls makes for a more expensive store design. However,
the soft angles create better traffic flow throughout the retail store.
Geometric Floor Plan
Geometric Floor Plan
The geometric floor plan is a suitable store design for clothing and apparel shops.
It uses racks and fixtures to create an interesting and out-of-the-ordinary type of
store design without a high cost.
Mixed Floor Plan
The mixed floor plan incorporates the straight, diagonal and angular floor plans to
create the most functional store design. The layout moves traffic towards the
walls and back of the store.
PRINCIPLES OF STORES
The principles of stores include the functions, factors, organization,
characteristics, methods and procedures of stores.
Receive the material – Receiving and accounting of raw materials, bought
out parts, spares, tools, equipment and other items. Counting for proper
quantity as per the documents.
Store the material – Provide the right and adequate storage and preserve
the material properly. Ensure the materials do not suffer from damage,
pilferage or deterioration.
Remove the material when required – Facilitating easy location and
Deliver the material to right place – Fulfilling the demand of consumer
departments by proper issue of items on the receipt of authorized purchase
Keep the records perfectly in discipline – To maintain proper records and
update receipt and issue of materials.
FACTORS FOR STORES DESIGN
The type of material to be stored – The type of material will be
deciding factor for the method and equipment for storing and
handling the material to and from storage.
The variety of material stored – If the variety of material stored is
small, then it may be possible to use simpler and denser methods
and storage. As the variety of parts increases, it is necessary to
provide appropriate storage to each variety.
The speed at which the material has to move – Speed of movement
of a part reflects whether the part is fast or slow moving. It would be
improper to choose the same methods for storing fast and slow
The location of suppliers – The location of the supplier will affect a
number of factors. A supplier that is close to the plant may make
frequent deliveries while a more distant supplier would send
material in larger, infrequent loads.
The location of customers – The location and geographical dispersion
of customers play an important role in stores design. Distance from
the customer influences the manner of material storage and
CHARACTERISTICS OF STORES
Maintain good housekeeping – Keeping the stores clean and in good
order so that the handling, preservation, stocking, receipt and issue
can be done satisfactorily.
Keep proper control – Keeping a vigil on the discrepancies, abnormal
consumptions, accumulation of stocks, pilferation, theft etc.
Exercising controls measures.
Manage the people in perfect discipline – The people working have
to be in perfect discipline. The procedures have to be followed as
per the written policies.
Avoid keeping surplus material – Minimization of scrap, surplus, and
obsolescence through proper inventory control and effective
disposal of surplus and obsolete items.
Verification of stocks at regular interval – Verifying the bin card
balances with the physical quantities in the bins and initiating the
purchasing cycle at appropriate time so as to avoid the out of stock
STORES METHODS AND PROCEDURES
Identification method - Identification method is an essential method
as it facilitates easy job. The description of item is lengthy and
without perfect identification, stores system cannot be operated on
mechanical or electronic computing devices.
Receiving method – This method starts with the placement of
purchase order of items by the purchase department. A copy is sent
to stores. This copy gives an idea of the time when and what
quantity is coming. This helps to plan the receipt, unloading,
unpacking. When the delivery is received, the receiving section
unpacks the materials. Weighbridges, measuring devices are used
for this purpose.
Storage method – There are 3 types of storage methods, that is,
physical, open stores and closed stores. The physical method is
important for easy location, proper identification and speedy issue
to the consuming department. The responsibility of the open stores
method is to deliver the material to production areas and to devise
storage arrangements with the department. In case of closed stores
method, all materials are stored in a closed area. Only stores
personnel are allowed to enter the area.
Issuing method – Issue are of 2 types: issuing to production
departments and issuing to outside parties for processing.
Production programs regulate the control of issues. That makes the
list for each material quantity to be issued. Stores personnel are not
authorized to issue beyond the work order quantity.
The stores layout is an important and essential factor which needs to be
taken into account in warehousing and management. It is important to
have a better look at the design of the stores layout and facilities. It should
not be located at a remote place as is done in a number of factories. Better
managed stores are laid out in better style. We can eliminate or reduce
stores but not at the cost of stoppage of production.
There is no uniquely ideal manner to design all stores. A thing has to
be kept in mind that the stores layout is not like any other office layout.
Office layout can be changed but changing stores layout is expensive. One
cannot do it often. So proper thinking has to be done well before taking