How Store Layout Can Increase or Decrease Your Profitability 

When we’re shopping as consumers, we often forget how much thought has gone into the design and layout of a store we visit, and as business owners, we often think of store layout as a one-time task. Sure, we’ll update it once a year or so, but is that enough, or too much?

What many people forget is a store layout can make or break it’s profitability. A good store layout keeps customers engaged and purchasing. Good visual merchandising can result in increased customers and sales, as well as making the most out of your space, and your harder-selling products without having to reduce their price.

However, a layout that hides products or has visually overwhelming displays will make sales far less likely. So, how can you choose a store layout that will increase your sales, and how often should you do so?

How Often Should I Update My Store Layout and Category Allocation?

How often you choose to update your store’s layout will depend some on your industry, but generally, you should think about changing up the allocation of your displays and category allocation on a seasonal basis. For your store layout, once a year is usually a good rule of thumb.

There’s a big difference here between thinking about category allocation and actually moving things around – sometimes, it’s going to be perfectly adequate to consider the allocation and only change things on a very small scale. It’s important that you always analyse what’s working and what’s not.

Test and Analyse What’s Working

If you can, survey your customers to find out if an area of your store that doesn’t seem to shift stock is because your customers never go back there or because they have no need for those products. You can also test this by moving these products to a more easily accessed area of the store.

You need your layout to stay fresh enough that customers are intrigued to come back regularly to see what’s new, but not so regularly that they feel unsure about where things are. Some customers embrace change happily, while others find it overwhelming, so be prepared to have staff help or use signage on occasions where you seriously move around the store.

How Do I Know When a Store Layout is Working?

A store layout works when it pulls traffic throughout the store and allows customers to at least see all the different departments or categories you have. You need to spread your bestselling categories out in a way that ensures there aren’t large areas of congestion.

You also need to ensure your displays are actually doing that – displaying your products. If your shelving is old and outdated and shadows most of your products or makes the space feel small and cramped, you’re going to turn off customers. If you have the budget, replace old units when possible to best display your stock and show your customers that you’re a store that strives to better itself. You can find out more about our shelving units, which can be fully customized for your store, here.

What Should I Consider Before Adjusting My Store Layout?

• Do you sell “trending” products? Use your sales data to influence the way you reshuffle your store layout. For example, if current events dictate that a certain product (such as bottled water, soap, hand sanitiser) will sell well, it may be worth giving those products a little more space for the next few months. Put similar products close by.
• What’s your budget? If you have a big budget, it’s worth thinking about big changes like replacing and moving display units, but if you don’t have the budget to make major changes, keep things small – you can still make effective changes.
• How big is your store? Updating the entire layout of your store will be a lot easier if you’re working with a smaller space, but if you’re working with a large space, it might be worth simply reworking a category or department now.
• Does your new floor plan need to discourage shoplifting? If you’ve dealt with shoplifting, a refresh of your layout is the perfect way to deter shoplifters. Not only will they have to reassess their routes, but you can place the checkout or security near the exit and strategically place high-ticket items.

Of course, it’s not just the layout of a shop that determines its success. Other factors like space between aisles, merchandise arrangements, shelf and fixture colors can affect whether a customer is likely to return to your store. If you’re thinking of updating any of your display or shelving units, don’t hesitate to reach out to us with your needs. We’ll help you get the units you need or help you make a custom unit to fit your space.
Contact us today here.