Retailing is all about making the product available for the consumer. The consumers are of distinct behaviour patterns. While one type of consumer is satisfied with the products available around their proximity areas, there are few others who do not mind labouring to get the product from any kind of distances.
Consumers also do not want to step out of their comfort zone to reach for a product. With these extreme kinds of behaviour patterns, Retail industry has reached its significant heights in the market. Retail has a very important significance with respect to its place, price, product and promotion.
Price and Products are very important to every customer. But when the product has proper promotion then the market is automatically generated. The products can be made available at all places. So the four Ps, Place, Price, Product and Promotion are very important for every retail organization.
Benefits of Space Planning:
Adequate space planning techniques enable the retailer to have end-to-end control of merchandise. This display will attract more customers, minimizes stock outs and operating costs, enables inventory productivity, and increases the financial performance and ultimately more profits for the retail outlet. Retailers can drive top line sales, and achieve good overall returns on their invested amount of capital.
The traditional space planning process is altered meeting with the localized needs of customers. Retailers should move away from developing prototype store layouts, as no two stores look alike. They should maintain store specific plans by gaining more knowledge about their stores.
Effective planning of the retail space and managing it in a right way is the key factor in the lifecycle of merchandise planning and execution. More retailers are adopting the fact that space management is an integral part of any retail business.
The important aspects to consider before selecting Retail Place:
- Is the area or location well populated?
- Understanding the advantages and disadvantages of the location
- Factors to be considered
- Understanding traditional and modern issues of store location
Retail place plays an ideal role in the success of the retail unit. Along with this there is also importance of good merchandise, better customer experience, and effective sales promotion which are very essential. Location or place of the retail outlet decides the smooth functioning of the unit. If not the profitability of the organization will face adverse effects. The employees working for the retail outlet will have to be paid heavily if the retail destinations are not properly located.