General overview of a Department store

A department store is a retail establishment offering a wide range of consumer goods in different
areas of the store, each area ("department") specializing in a product category. Departmental stores
are large scale retail stores selling under one roof under a single control. They deal in a variety of
goods. They are divided into different departments, each selling a particular merchandise.
Departmental stores are of French origin. Departmental stores came into existence in 19th century. In
modern major cities, the department store made a dramatic appearance in the middle of the 19th
century, and permanently reshaped shopping habits, and the definition of service and luxury. Similar
developments were under way in each of London (with Whiteleys), in Paris (Le Bon Marché) and in
New York (Stewart's).

Today, departments often include the following: clothing, furniture, home appliances, toys,
cosmetics, housewares, gardening, toiletries, sporting goods, do it yourself, paint, and hardware.
Additionally, other lines of products such Interior of Le Bon Marché in Paris as food, books, jewelry,
electronics, stationery, photographic equipment, baby products, and products for pets are sometimes
included. Customers generally check out near the front of the store in discount department stores,
while higher-end traditional department stores include sales counters within each department. Some
stores are one of many within a larger retail chain, while others are independent retailers. In the
1970s, they came under heavy pressure from discounters, and have come under even heavier pressure
from e-commerce sites since 2010.

In the United States, department stores are categorized into the following types: Mainline department
store or simply, the traditional department store, offering mid- to high-end goods, most or at least
some of the time at the full retail price. Examples are Macy's, Types Sokos department store building
in Multimäki, Kuopio, Finland Bloomingdale’s, J.C. Penney and Belk. Junior department store, a
term used principally in the second part of the 20th century for a smaller version of a mainline
department store. These were usually either independent stores, or chains that specialized in
cosmetics and wearing apparel and accessories, with few home goods such as Boston Store and
Harris & Frank Discount department store, a large discount store selling apparel and home
furnishings at a discount, either selling overstock from mainline department stores, or merchandise
especially made for the discount department store market. Examples are Nordstrom Rack, Saks Off
5th, Marshalls, Ross Dress for Less, and Kohl's. Some sources may refer to the following types of
stores as department stores, even they are not generally considered as such: Hypermarkets (discount
superstores with full grocery offerings, such as Target, Walmart and Carrefour) Variety stores, also
known in the U.S. as five and dimes

Conceptual Definition of Departmental Stores

A departmental store is type of retail institution which handles a variety of merchandise under one
roof, with the merchandise grouped into well-defined departments which are centrally controlled, and
which caters primarily to women shoppers.— Clark and Clark

A departmental store is a collection of shops under one roof and ownership, each shop or department
specializing in selling a special range of goods.— G.B. Giles

A retailing institution that deals in many lines of merchandise including women’s wear and house
furnishing, each line being separated or departmentalized from the other.— Killough

From the above definition, we can understand that a departmental store is a retail shop handling
several classes of goods, each class being separated from other in management, accounting and
location.

History of Departmental Stores

The origins of the department store are disputed. Some sources consider the origins to be dry goods
stores in general, a type of store that has roots in many countries. As these dry-goods stores became
larger and more complex and more aspirational, the inspiration was especially the department stores
of Paris, such as The Bon Marché opened in 1852, Printemps (1865) and the Samaritaine (1869).
However BBC Harding, Howell & Co., a contender for the title of first department store in the world
contends that the first department store was Harding, Howell & Co.’s Grand Fashionable Magazine at
89 Pall Mall in St James's, London. Origins in England, 1700s. One of the first department stores may
have been Bennett's in Derby, first established as an ironmonger (hardware shop) in 1734. It still
stands to this day, trading in the same building. However, the first reliably dated department store to
be established, was Harding, Howell & Co., which opened in 1796 on Pall Mall, London. An
observer writing in Ackermann's Repository, a British … periodical on contemporary taste and
fashion, described the enterprise in 1809 as follows: The house is one hundred and fifty feet in length
from front to back, and of proportionate width. It is fitted up with great taste, and is divided by glazed
partitions into four departments, for the various branches of the extensive business, which is there
carried on. Immediately at the entrance is the first department, which is exclusively appropriated to
the sale of furs and fans. The second contains articles of haberdashery of every description, silks,
muslins, lace, gloves, &etc. In the third shop, on the right, you meet with a rich assortment of jewelry,
ornamental articles in ormolu, French clocks, &etc.; and on the left, with all the different kinds of
perfumery necessary for the toilette. The fourth is set apart for millinery and dresses; so that there is
no article of female attire or decoration, but what may be here procured in the first style of elegance
and fashion. This concern has been conducted for the last twelve years by the present proprietors who
have spared neither trouble nor expense to ensure the establishment of a superiority over every other
in Europe, and to render it perfectly unique in its kind. This venture is described as having all of the
basic characteristics of the department store; it was a public retail establishment offering a wide range
of consumer goods in different departments. This pioneering shop was closed down in 1820 when the
business partnership was dissolved. All the major British cities had flourishing department stores by
the mid-or late nineteenth century. Increasingly, women became the main customers. Kendals
(formerly Kendal Milne & Faulkner) in Manchester lays claim to being one of the first department
stores and is still known to many of its customers as Kendal's, despite its 2005 name change to House
of Fraser. The Manchester institution dates back to 1836 but had been trading as Watts Bazaar since
1796. At its zenith the store had buildings on both sides of Deansgate linked by a subterranean
passage “Kendals Arcade” and an art nouveau tiled food hall. The store was especially known for its
emphasis on quality and style over low prices giving it the nickname “the Harrods of the North”,
although this was due in part to Harrods acquiring the store in 1919.Harrods of London can be traced
back to 1834, though the current store was built between 1894 and 1905. Liberty & Co. gained
popularity in the 1870s for selling Oriental goods. Origins in Parisian magasins de nouveautés … The
Paris department stores have roots in the magasin de nouveautés, or novelty store; the first, the Tapis
Rouge, was created in 1784. They flourished in the early 19th century. Balzac described their
functioning in his novel César Birotteau. In the 1840s, with the arrival of the railroads in Paris and the
increased number of shoppers they brought, they grew in size, and began to have large plate glass
display windows, fixed prices Au Bon Marché and price tags, and advertising in newspapers. A
novelty shop called Au Bon Marché had been founded in Paris in 1838 to sell items like lace, ribbons,
sheets, mattresses, buttons, and umbrellas. It grew from 300 m2 (3,200 sq ft) and 12 employees in
1838 to 50,000 m2 (540,000 sq ft) and 1,788 employees in 1879. Boucicaut was famous for his
marketing innovations; a reading room for husbands while their wives shopped; extensive newspaper
advertising; entertainment for children; and six million catalogs sent out to customers. By 1880 half
the employees were women; unmarried women employees lived in dormitories on the upper floors.
[17] Au Bon Marché soon had half a dozen or more competitors including Printemps, founded in
1865; La Samaritaine (1869), Bazaar de Hotel de Ville (BHV); and Galeries Lafayette (1895).
Characteristics of Departmental Stores

A departmental organization has the following features.

1. A departmental store is a large retailing unit.

2. A department store deals in a wide merchandise line. All goods are available under one roof.

3. It is divided into various departments, each dealing in a special range of goods.

4. A department store is centrally located.

5. The store is a horizontally integrated institution.

6. All the departments have centralized control on advertising, sales promotion, accounting, credit,
employment, etc.

Advantages of Departmental Stores

Departmental stores offer the following advantages.

1. Economies of large scale buying

Departmental stores buy directly from manufacturers. They are given special concessions on account
of their bulk purchase. They avoid expenses incurred on middlemen. So, prices charged by
departmental stores are comparatively lower.

2. Convenience in shopping

Departmental stores are large scale retail stores that deal in a wide variety of shopping and specialty
goods. All sorts of goods from pin to plane are available under one roof. So, without moving from
shop to shop, customers can buy their requirements in one place. Thus, their time and efforts are
saved.

3. Customer services

Departmental stores offer many services and facilities to customers. Customers get quality goods at
cheaper rates. Departmental stores have made shopping a pleasant experience. Expert supervision of
various departments, adoption of a liberal credit, free delivery service, recreational facilities,
courteous treatment etc., are some important services that customers can enjoy while shopping at
departmental stores.
4. Lower operation cost

Departmental stores are large in size. For each important class of merchandise, there is a separate
department. Each department works under a manager. He is responsible for the success of his
department. In addition to these, there are a large number of accountants and cashiers. The overall
expenses spent may appear high.

But when they are divided among a large number of sections, the cost of operation is cheaper.
Moreover, advertisement expenses are incurred for the departmental store as a whole. So, it can be
entrusted to an outside agency specializing in advertising.

5. Efficiency in operations

Departmental stores employ trained salesmen, who are taught to regard that, “the customer is always
right“. Departmental stores offer a superb ambiance for customers — waiting lounge, reading room,
restaurant, information bureau, channel music, etc.

6. Convenient location

The success of a departmental store depends upon its location. The availability of space, the area and
community to be served and ability to attract customers are the important factors. Since every
departmental store is located in a convenient location, customers look forward to shopping there.

Disadvantages of Departmental Stores

Departmental stores are not free from defects. There are certain specific limitations that hinder their
progress.

1. High operational costs

Departmental stores are located at important localities. They are modern, decorated and equipped
with latest facilities.

They are large, necessitating, numerous supervisors and huge investments. They also employ
professionals such as window decorators, copywriters, etc. Salary paid to these personnel burdens the
departmental store with high overhead costs. Ultimately, the operating costs are high.

2. High cost of capital

Departmental stores require huge capital for their establishment. Spacious building in a convenient
location is also essential for its success. So, an enormous amount of fixed capital is sunk in the form
of its premises. Apart from loan from banks, funds may have to be mobilized from private sources.
Cost of capital derived from such sources is comparatively high. Often departmental stores go in for
rental buildings, where rent is exorbitantly high.

3. Absence of personal touch

A departmental store is a large organization. Employment of a large number of persons is inevitable.

In order to economize the cost of operations, salary paid to employees may be poor. Then the low
paid employees lack motivation, and their attitude to customers may be lukewarm. Most of the
employees in department stores quit their jobs in search of better opportunities. This results in high
employee turnover. So, maintaining personal contact with customer is difficult.

4. Risk factors

Departmental stores suffer loss due to risks. Departmental stores are characterized by a wide
assortment of merchandise. They buy in bulk. They keep a large stock of goods to cater to the needs
of customers. This may lead to dead stock where capital is locked up. Moreover, the prices of fashion
goods fluctuate. There may be pilferage and mishandling of goods by employees.

5. Too much of specialization

Goods in the departmental stores are divided into different classes. Each class of merchandise is dealt
in by a separate department. Departmental stores are specifically important in the sale of women’s
apparel, accessories and home furnishing. In fact, they are primarily a women’s store. Sometimes,
men’s department is physically separated from a women’s section, with a separate entrance. So, too
much departmentalizing leads to over-specialization.

6. Accessibility

Departmental stores are located in busy areas. Crowded roads, lack of parking space and being far
away from residential areas make departmental stores inaccessible to people if they want to finish off
shopping quickly. When goods are needed at once, nearby retail shops are preferred.

Despite the above factors, departmental stores are becoming more popular. They are huge modern,
decorated and offer better services. Departmental stores have eventually turned into self-service
counters. Consumer’s loyalty and trusted brands make these departmental stores popular.
Design consideration of departmental store

there are four main groups to be analyzed:

 the external variables,

 the General Interior Variables,
 the Layout and design Variables,
 the Point-of-purchase, and the decorations

The External considerations

 Exterior signs
The exploration of exterior signs is the initial part of the whole process of the design strategy for
retail attractiveness. Despite of urban visual pollution, most of the retailers largely explore those signs
to maximize the advertisement potential to dispute the public reaction (Nasar & Hong, 1999). The
retailer’s designers implement several forms of design in signage ranging from different colors, font
sizes, lighting effects, and the most important the strategic location: crowded public areas and routes
with intense vehicle traffic. Food retailers are the main explorers of exterior signage techniques and
their arousal consequences promoted by their brand logo among consumers (Kent, 2003).

 Entrances
The exterior design relies on oriented commercial design allied with customer attractiveness; hence,
the entrance plays an important role as an architectural element. According to the entrance design
proposal, retailers stimulates the customer entry willingness and select the targeted customer for the
store environment (Roozen, 2019).

 Exterior display windows

Likewise, the entrances, the exterior windows are responsible for the first impressions on potential
consumers (Roozen, 2019). Therefore, the emotional effects caused by the exterior display are
important elements to be investigated and designed due to the product exposition. The windows
design, dimensions and positions enhance the existent relation between product exhibition and
customers’ attention (Lamberton & Diehl, 2013). 8

 Height, Size of the building

The buildings dedicated for retail activity, in general terms, are not necessarily properties from the
retailers. It is important to illustrate the relationship between landlords and tenants to examine these
two variables. The categorization among retailers is significant to understand the control of building
dimensions. Large retailers, for example, food retailers, supermarkets and large franchises obtain
more control over these two variables owning to the financial robustness and design standard
requirements of the brand and franchise for tenancy.

Therefore, the building dimensions, especially for new constructions are designed according to the
retailer’s standards. However, in most of the cases, especially street commerce, these variables are
rarely altered owning to the construction restrictions, elevated costs of legal modifications and
landlord agreement (Roozen, 2019).

 Color of building
According to Baker (1994), color tonalities offers an emotional influence over customers in which
might cause a psychological impact, positive or negative, in the store evaluation. Colors are selected
according to the brand’s view and marketing strategy. The color of the façade is connected to the
project communication of the brand, for instance, the company’s logo where instigates the customer
to identify the company with the building. The color choice is a significant variable for the external
design and highly correlated to the customer’s opinion of the store environment.

 Surrounding stores
The retail environment must be examined through a broader perspective not only the internal or
external features. The context in which the store is located has a considerable influence on the
commercial, marketing, and design strategies. The neighborhood context has a positive influence over
the retail environment, from street commerce until shopping centers, commercial agglomerations
promote positive externalities (Teller & Reutterer, 2008).

The concept of “coopetition” between retailers generates a win-win relation once enhance the general
quality of the architectural design owing to the competition from other sellers and indorses the
preferred consumers allied with the income (Teller & Reutterer, 2008).

 Lawns and gardens

The landscape design is part of the design approaches adopted by retailers to enhance the shop
experience. The investment in “green areas” stimulates the pleasantness of customers, the emotional
variable largely explored mainly shopping centers for the increase of expenditure time, inside the
commercial zone. The gardens and lawns are also designed for the environmental issues being
incorporated in the public access level, but also as rooftop in the form to collaborate with temperature
control and natural cooling (Yudelson, 2010). 9
 Address and location
The location is vital for the functioning and survival of a retail store. The accessibility for the retail
store and its surroundings must provide the most comfort for the end-user, therefore, the location has
significant importance for retailers site location choice (Li & Liu, 2012). From the urban insertion
viewpoint, retailers trace the characteristics of the target the region, hence, the most satisfactory
design for the location, aiming to fulfill a commercial gap in the area or to establish a milestone
commercial environment

 Architectural style
The architectural style, by the visibility of the variable, is one of the most impacting variables from
the consumers and retailers the association between marketing strategies, company values, and
consumer intentions (Baker, 1994). In general terms, the commercial architectural style diverges
according to the industry operated by the retailers. For instance, Health & beauty, food, fashion,
entertainment, department stores, home & DIY, adopts external architectural styles divergent,
however following similar organizational structure (Stanton, 2018).

 Surrounding area
The comprehension of the surroundings, from a retail and urban perspective, is crucial for the
competition among retailers and the wellbeing of local inhabitants (Li & Liu, 2012).The shopping
experience is accountable for considerable changes in the local context, through the development of
better urban interaction areas: parks, squares, new accessibility routes and the cultural enrichment
across the flux of different population background (Teller & Reutterer, 2008).

 Parking availability and Congestion and traffic

Customers are highly influenced by the environmental conditions and the surrounding area conditions
are also elements of customer evaluation for shopping (Li & Liu, 2012). The parking availability and
traffic situations are variables, partially controlled by architects and retail designers. However,
accessibility conditions must be designed in favorable conditions for all types of transportation. The
access will affect customers emotions positively contributing to shopping experience (Teller &
Reutterer, 2008).

 Exterior Wall
The external communication is vital for the retails project communication, the exterior walls are
considered as the concrete link between the customer and brand. The surface is commercially
oriented to contribute to the identification sense and to improve sales (Kyle B. Murray, 2013). 10
The General Interior

 Flooring and carpeting

The quality, the colors, the stamps of carpets and flooring influence customer opinion about product
quality (Baker, J.1994). Flooring and carpet design and quality are Interior variables relate to the
merchandise store level quality. These variables are important for customers ‘orientation inside the
interior ambiance defining the different usages and proposals of the store (Yu, 2015)

 Colours
The commercial potential of colors is a variable commercially implemented on the external
environment as a brand symbol, but also influence in the interior design concept. Colors are
commercially explored by retail designers owing to the range of emotions stimulated by the variable.
The consumer’s attention is influenced by the shade of colors, for instance, cool and darker colors are
applied in areas (Spence, 2014).

 Lighting
The lighting design, similarly, to colors, is a strategically visual variable largely financially invested
by retailers in the outdoor and indoor environment (Spence, 2014).The exterior lighting design
implementation is related to the brand image and the signage; however, the aim of the interior
ambiance has a broader function in terms of design function.

The interior illumination is designed to orient the interior flux movement and, simultaneously, to
highlight products. For instance, customer’s time expenditure is higher in brighter displays in
comparison with lower enlightened. Moreover, lightning designs affect customer’s perceptions
through the influence of the emotional state, to achieve pro-consumption behavior inside the store
atmosphere (Spence, 2014).

 Music
The flooring, the colors, and the lighting are visual aspects largely invested by retailers in contrast
with sensorial variables. However, music and its effects over the environment transformed it into one
of the most studied variables from retail research (Garaus, 2019). According to (Spence, 2014), the
sensorial shopping experience also affects the customers perceptions and promotes positive emotions.

Despite of the visual characteristic of the architectural concepts, the Music could be translated as
design variable once directly affects the performance and the usage of the store environment. The
background music, including the style and volume level is designed to be played according to the
ambiance. The commercial strategy ranges from Calm and relax music styles to promote, in general,
promotes positivity, hence, guiding client to consume more. Besides the music style, is responsible to
track customers age group according to the musical style (Yildirim, 2015). 11

 Scents
The sensorial experience is an “old” variable extensively applied by retailers in the most organic
form. It is important to stress the origin of retail activity was based on street commerce where
merchants use different forms of advertising, including the olfactory experience. According to
(Schifferstein, 2002), the odorant effects have the same influence impact as other variables for
customers’ spatial assessment, for instance, signage or display products. For instance, food retailers
widely explore the odorant effects as a natural form of product marketing owning to the association
between customers’ emotional memories and the store or product (Schifferstein, 2002).

 Width of aisles
The width is also an element of customer emotions once an overcrowded space infers a low-quality
ambiance and consequently a store assessment (Baker, 2002). The architectural atmospheric variables
in the design are linked to the functionality and for the best store’s layout performance. The aisles are
spaces dedicated to people passage and designed to connect different ambiances.

However, in retail design aisles are not the only concept as a connector in between spaces but as
important displays areas for the retail activity. Thus, the width of the aisles must attend shoppers, in
terms of dimensions, to promote an adequate flux without obstruction (Yu, 2015). 12

 Paint and wallpaper

These two tangibles variables are pertinent for the store interior communication. The interior layout
offers, similarly, to flooring and carpeting, a stronger visual communication. The paints and the
wallpapers often contain the brand / product information and support customer orientation (Yu,
2015).

 Ceiling composition
The ceiling composition is a variable particularly limited in terms of literature. In most cases is linked
to other variables for instance: building height, temperature, lighting, and acoustic ambiance. The
ceiling composition in retail design has a similar proposition from other architectural ambiances and
usages. The technical approach is the main core of the ceiling composition supporting the network
distribution, heating and cooling systems embedded or exposed for the interior environment.
(Leydecker, 2013).

 Temperature
The ambient environment is a controlled variable and designed according to the retail proposal and
customers’ comfort. The retail interior operates different sensorial aspects for the shopping
experience including the ambient temperature. The customers’ comfort is one the main goal for
retailers to increase the spatial attractiveness correlating with sensorial memories (Moller, 2013). The
sensorial experience through temperature is linked to the commercialized product. For instance,
clothing retailers’ adequate temperatures for customers comfort in fitting rooms or reduce the
temperature in shoe stores owning the odor promoted by shoeing (Moller, 2013).

 Cleanliness
The set of these variables in the retail environment and the quality are associated with customers’
perceptions (Moller, 2013). The organization, the lightning, the colors, the products displays, and
service quality are variables highlighted by retail designers and architects. For instance, customers
attribute the cleaning conditions as a significance variable for the restaurant evaluation and quality of
the offered product and service (Moller, 2013). 13

 Merchandise
The merchandise based on large product advertisement is one of the old marketing strategies from
retailers since brick and mortar until shopping centers. In retail design, the visual impact is the base
for merchandise. The interior design proposal is based on the visual aspects from the product
displays, price tags and multiple windows displays (Grewal, 2017).

 Placement & Grouping of merchandise

The merchandise, as cited in the general interior design group, is relevant for customer attraction and
reflected in the design strategies for the retail store concept. On the same reasoning, the placement
and grouping of merchandise are based on the customers’ interests and products association (Isti,
2010).

The internal layout and product distribution are influenced by consumers ‘choices’ behavior and
product type. The retailers explore the shopping experience through the creation of a chain of
interdependence among several products, hence, increasing the time expenditure and consequently,
increasing the sales performance (Isti, 2010).

 Workstation placement
The workstation placement is growing demand, mainly for retailers that offer customized service for
customers. The constraints are associated with the equipment’s accommodation, from the furniture,
the electronic devices and the adequate space for the employees and customers. The layout must be
organized to not interfere in the consumer flux (Huffman, 1997).

 Placement of equipment & cash registers

From the retail literature review, it is possible to trace the influence of grocery stores as cutting-edge
environments in retail activity. The evolution of the contemporary retail layout is based on the
grocery and food retailer’s evolution (Stanton, 2018). The placement of cash registers is important to
understand the current layout concept applied in the retail environment. The allocation of cash
registers and other equipment, next to the exits of the store environment, is a result of a new
organization system called self-service, developed in 1916, in a small grocery called Piggy Wiggly,
Memphis (Freeman, 1992). The new cash registers positioning supported by the new layout permitted
the creation of oriented customer flow. 14

 Waiting areas & Waiting rooms

According to (Garaus, 2019), the experience in waiting areas and rooms are a considerable part of the
set of the environmental assessment by customer’s perceptions. The goal of these spaces is oriented to
offer a distraction for the customers and occasionally product advertisement, for instance in bank
agencies (Evanschitzky, 2015). The design of the waiting areas consists of the use of some mentioned
variables such as the music soundtrack and the extensive use of electronic devices, but not an
elaborated strategy in terms of architectural design.

 Department locations
The store distributions on the floor plans of department stores are organized according to the
association of the brand, the quality of the commercialized products and customers ‘flux. (Ikeler,
2016).

 Traffic flow & Waiting queues

The layout and design variables are favorably related to the consumer’s flow and store organization.
The traffic flow is linked to the store layout, particularly promoted by the concept as “walk the
stores”, where customers circulate with no obstruction for shopping (Stanton, J. 2018).The customers
flow is directly associated with the reduction waiting for queues, principally at the cashier registers or
entrances/exits, the crowding promoted by queues affects customers’ perceptions and about store
quality (Roozen, 2019).

 Racks and cases

The racks and cases similarly as product display or exterior where the dimensions and the visibility
are essential for the merchandise. In addition, according to (Moye, 2002), the racks and cases
attention deviates from the customers’ preferences or purchase orientation.

 Furniture
The furniture, as other variables interior design variables with high visibility inside the shopping
ambiance is highly associated with the quality and affects customers’ perceptions (Murray, 2013).The
choice of the furniture characteristics: style, colors, dimensions, and materials are elements that
influence the entry willingness and select social-economic customers market segment. (Yildirim,
2015).

The Point-of-purchase and decoration variables

 Point-of-purchase displays
The Point-of-purchase displays or nominated as POP are products displays strategically allocated in
areas with elevated traffic flow entrances or cashiers owing to the variable has influence on the
environment and customer’s attention (Sigurdsson, 2010).

 Wall decorations
In the interior design and architectural layout for retail environment the walls are not designed to
divide ambiances. Longer and larger walls are designed for shelving thus the decoration is oriented
for product displays (Murray, 2013).

 Pictures & Artwork

These two variables influence, and usage application are similar in retail environment. The use of
images or colorful paintings are a designed as a support strategy for other variables like windows
display and traffic flow (Kernsom, 2010).

 Product displays
The variable has similarity with POP to stimulate the production consumption. The Product display
affect the consumption stimulus, even for products with controlled sales, for instance, cigarettes
(Burton, 2012).

 Teletext
The variable is not causally linked to the retail environment functioning as data for customers capture.
The system works and loyalty programs, card, or mailing (Murray, 2013).
For these specific variables: Signs and cards, Degrees and certificates, Usage instructions and Price
displays, it was not found relevant literature for analysis.

The Layout and design Variables

 Space design and allocation

The retail environment organization is designed for two main goals, the visual impact and sales
performance. The product allocation must be aligned with the design proposal and oriented according
to the internal customers’ flux. Therefore, the shelves are crucial for the internal layout once the size
and their position are highly associated with the sales performance of the displayed product (Yujie,
2016).

Functional layout

It is well known that furnishing arrangement also greatly influences people behaviour when shopping.
It is important that the store layout contributes to a positive shopping atmosphere, inviting customers
to prolong their stay in the supermarket and encouraging a certain number of unplanned purchases,
the so called ‘instinct purchases’. The longer a customer is in a store, the more likely she is to buy —
therefore, the goal is to keep her shopping longer. Escalator placement (arrangement of the down and
up escalators), arrangement of fixtures and even the placement of departments affect the store's
traffic.

For example, some food retailers put necessities such as eggs and milk in the back of the store so the
customer has to navigate through other merchandise to get to them. Department stores also use this
strategy, putting the kids department on the top floor so that parents have to walk through other
sections — thus increasing the likelihood that they will purchase more.

The layout can organize product categories together so that customers find different items they are
looking for in one location. Equally as important is the layout's ability to keep complementary
products or similar brands in proximity so that a customer will be more inclined to buy products
connected to the one they are shopping for. Grouping together designers that cater to a similar
customer, or merchandising winter hats, gloves and scarves in the same area, is a way to bring
additional cross-category or cross-brand sales.

A lot of time, effort and manpower goes into offering the key features of a good store layout.
Retailers use layout to influence customers' behavior by designing the store's flow, merchandise
placement and ambiance. Layouts also help retailers understand how much revenue per square foot
they are making; using this information, they can properly assess the strengths and weaknesses in
their merchandising mix.
The interior retail store layout has two important components:

 Store Design: The use of strategic floor plans and space management, including furniture,
Displays, fixtures, lighting, and signage. We’ll further discuss a variety of popular retail floor plans.
 Customer Flow: This is the pattern of behavior and way that a customer navigates through a
store. Understanding customer flow and the common patterns that emerge when customers interact
with merchandise based on the store layout is critical to retail management strategy.
Physical retailers are able to track this using analytic software and data from in-store video and with
the signal from smartphones. For example, solution providers like Retail Next provide shopper
analytic software for retailers to understand flow and optimize the customer experience based on in-
store video recordings. The technology also exists to track the digital customer flow and online
shopping behavior. Using “cookies” and other software, online retailers can track customer behavior,
including how customers interact with their website.

Personnel positions in a departmental store

In each of these departments, depending on the size of the store and the sales volume it does each
week, the following personnel positions are provided:

 Department Manager (usually 1)

 Assistant Department Manager (usually 1)

 Product Buyer/Order-er (1 or more depending on the size of the department)

 Stock clerks (anywhere from 3-10 or more per department)

The Front End mostly consists of cashiers and baggers in addition to the department manager and
assistant manager.

Then on a more store-wide level, there would be support positions such as:

 HR (usually 1) – Responsible for payroll support, hiring, firing, disciplinary matters

Receiving (the person responsible for receiving the delivery trucks and sending the products to the
departments to be stocked) – this could be 1 person or multiple depending on the size of the store.
 IT – Larger, more complicated stores would have an IT person responsible for price accuracy
for the printed price shelf tags, maintaining the computers, point of sale software the cash
registers use, and any electronic scales that weigh and print prices

 Custodians – departmental Stores should have employees who just clean, sweep, mop up spills,
and empty trash cans. Floor shinning/polish shoul be done as necessary.