{"id":2210,"date":"2018-03-28T16:12:27","date_gmt":"2018-03-28T16:12:27","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/?post_type=chapter&#038;p=2210"},"modified":"2024-04-25T03:05:49","modified_gmt":"2024-04-25T03:05:49","slug":"store-design-and-impact-on-sales","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/chapter\/store-design-and-impact-on-sales\/","title":{"raw":"Design and Sales","rendered":"Design and Sales"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Objectives<\/h3>\r\n<ul>\r\n \t<li>Use an example of store design that would likely impact sales<\/li>\r\n<\/ul>\r\n<\/div>\r\n<h2>IKEA: A Case Study in Leveraging Store Layout to Impact Sales<\/h2>\r\nWe mentioned in the last section that the forced path layout is not the most logical or pleasant shopping experience for the customer, who more often likes to wander around at his leisure, looking at the things he wants to see, when he wants to see them. Imagine, for instance, if your grocery store was set up in a forced path layout. You\u2019d have to go through the baby food section even if you didn\u2019t have kids. You\u2019d go past alcohol even if you weren\u2019t a drinker, and through the junk food section even if you were on a diet. No one wants to waste their time on a forced path layout, right?\r\n\r\nIKEA begs to differ. In fact, IKEA breaks all the rules, and yet they win in the end.\r\n\r\n<img class=\"alignright wp-image-5232\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2986\/2018\/03\/12231034\/ikea-1376853_1920-1024x770.jpg\" alt=\"An IKEA store front\" width=\"350\" height=\"263\" \/>We learned that customers like to shop on the same floor they entered the store on. Not at IKEA. Almost always, a shopper enters the store and is shepherded right up an escalator to the second floor, like in the diagram above.\r\n\r\nWe learned that customers also like to start out going to the right. Not at IKEA. Left is okay at IKEA. Clockwise is also very okay at IKEA. In the diagram above, people head to their left and start their way around the display showrooms. And, before you question it .\u00a0.\u00a0. you almost never see people going in the opposite direction of the suggested path. That\u2019s not okay at IKEA.\r\n\r\nFinally, we learned that people like wide aisles, which IKEA features in their paths .\u00a0.\u00a0. but not in their room displays. And yet, in an IKEA display, people will gather three and four deep to marvel at how the Swedish can live so economically in such a small amount of space.\r\n\r\nIKEA breaks all the rules, and yet it provides a shopping experience beyond all others. Shoppers clamor for it. So why does this forced path floor plan work for them?\r\n\r\nAlan Penn, director of the Virtual Reality Centre for the Built Environment, claims, \u201cIKEA\u2019s store layout is a psychological weapon used to confuse and disorientate (sic) shoppers into spending more.\u201d\r\n<div class=\"textbox key-takeaways\">\r\n<h3>Learn More<\/h3>\r\nYou can watch Alan Penn's full lecture here:\r\n\r\nhttps:\/\/youtu.be\/NkePRXxH9D4\r\n\r\nYou can <a href=\"https:\/\/course-building.s3-us-west-2.amazonaws.com\/Retail+Managment\/Transcripts\/WhoEnjoysShoppingInIkea_transcript.txt\" target=\"_blank\" rel=\"noopener\">view the transcript for \"Who enjoys shopping in IKEA? (18 Jan 2011)\" here (opens in new window)<\/a>.\r\n\r\n<\/div>\r\nAt first blush, you may not think such a thing is even possible, but it\u2019s absolutely true. Think about the simplest form of that: You find something you like as you\u2019re wandering through the maze of rooms, and you\u2019re afraid to put it down for fear you may not find it again. You carry it around with you, and then finally buy it, because you still have it with you when you reach the checkout area.\r\n\r\nThis also holds true for the flat-packed furniture the customer will pick up later in the warehouse. As they roam the IKEA offerings in the showroom, they can\u2019t pick up the item right where they see it. They have to grab a slip of paper and write down the location of that item in the warehouse, which is the second part of the IKEA experience. Which table does the customer want? Well, maybe this one, maybe that. He writes them both down, and then finds they\u2019re so inexpensive when he gets to the warehouse that he buys both. At this point, he\u2019s seen how adaptable the piece is. It was shown to him being used in four different rooms.\r\n\r\nThe \u201cpeople following each other\u201d in the forced flow format allows for every area of the store to be shopped\u2014every part of the store experiences uniform foot traffic. As we well know, merchandise not seen is merchandise not bought. Almost nothing is unseen at an IKEA.\r\n\r\nFinally, to get to the part of the warehouse where you buy the flat-packed furniture, you have to go through a \u201cmarketplace\u201d of deeply discounted items, everyday items like napkin holders and light bulbs, casserole dishes and martini glasses. The price is a compelling enough reason to add them to your basket, but again, the forced flow is making a play: shoppers grab them because they don\u2019t want to buck the flow of foot traffic, they don\u2019t want to have to go back and find it.\r\n\r\nIKEA\u2019s unconventional choice of layout impacts their sales very positively, so much so that they have over 250 stores in 26 countries, and their profits are in the billions.\r\n<div class=\"textbox tryit\">\r\n<h3>Practice Questions<\/h3>\r\nhttps:\/\/assess.lumenlearning.com\/practice\/8a8a43b5-1c39-4985-af7f-f45e4b108791\r\n<\/div>","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Objectives<\/h3>\n<ul>\n<li>Use an example of store design that would likely impact sales<\/li>\n<\/ul>\n<\/div>\n<h2>IKEA: A Case Study in Leveraging Store Layout to Impact Sales<\/h2>\n<p>We mentioned in the last section that the forced path layout is not the most logical or pleasant shopping experience for the customer, who more often likes to wander around at his leisure, looking at the things he wants to see, when he wants to see them. Imagine, for instance, if your grocery store was set up in a forced path layout. You\u2019d have to go through the baby food section even if you didn\u2019t have kids. You\u2019d go past alcohol even if you weren\u2019t a drinker, and through the junk food section even if you were on a diet. No one wants to waste their time on a forced path layout, right?<\/p>\n<p>IKEA begs to differ. In fact, IKEA breaks all the rules, and yet they win in the end.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-5232\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2986\/2018\/03\/12231034\/ikea-1376853_1920-1024x770.jpg\" alt=\"An IKEA store front\" width=\"350\" height=\"263\" \/>We learned that customers like to shop on the same floor they entered the store on. Not at IKEA. Almost always, a shopper enters the store and is shepherded right up an escalator to the second floor, like in the diagram above.<\/p>\n<p>We learned that customers also like to start out going to the right. Not at IKEA. Left is okay at IKEA. Clockwise is also very okay at IKEA. In the diagram above, people head to their left and start their way around the display showrooms. And, before you question it .\u00a0.\u00a0. you almost never see people going in the opposite direction of the suggested path. That\u2019s not okay at IKEA.<\/p>\n<p>Finally, we learned that people like wide aisles, which IKEA features in their paths .\u00a0.\u00a0. but not in their room displays. And yet, in an IKEA display, people will gather three and four deep to marvel at how the Swedish can live so economically in such a small amount of space.<\/p>\n<p>IKEA breaks all the rules, and yet it provides a shopping experience beyond all others. Shoppers clamor for it. So why does this forced path floor plan work for them?<\/p>\n<p>Alan Penn, director of the Virtual Reality Centre for the Built Environment, claims, \u201cIKEA\u2019s store layout is a psychological weapon used to confuse and disorientate (sic) shoppers into spending more.\u201d<\/p>\n<div class=\"textbox key-takeaways\">\n<h3>Learn More<\/h3>\n<p>You can watch Alan Penn&#8217;s full lecture here:<\/p>\n<p><iframe loading=\"lazy\" id=\"oembed-1\" title=\"Who enjoys shopping in IKEA? (18 Jan 2011)\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/NkePRXxH9D4?feature=oembed&#38;rel=0\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p>You can <a href=\"https:\/\/course-building.s3-us-west-2.amazonaws.com\/Retail+Managment\/Transcripts\/WhoEnjoysShoppingInIkea_transcript.txt\" target=\"_blank\" rel=\"noopener\">view the transcript for &#8220;Who enjoys shopping in IKEA? (18 Jan 2011)&#8221; here (opens in new window)<\/a>.<\/p>\n<\/div>\n<p>At first blush, you may not think such a thing is even possible, but it\u2019s absolutely true. Think about the simplest form of that: You find something you like as you\u2019re wandering through the maze of rooms, and you\u2019re afraid to put it down for fear you may not find it again. You carry it around with you, and then finally buy it, because you still have it with you when you reach the checkout area.<\/p>\n<p>This also holds true for the flat-packed furniture the customer will pick up later in the warehouse. As they roam the IKEA offerings in the showroom, they can\u2019t pick up the item right where they see it. They have to grab a slip of paper and write down the location of that item in the warehouse, which is the second part of the IKEA experience. Which table does the customer want? Well, maybe this one, maybe that. He writes them both down, and then finds they\u2019re so inexpensive when he gets to the warehouse that he buys both. At this point, he\u2019s seen how adaptable the piece is. It was shown to him being used in four different rooms.<\/p>\n<p>The \u201cpeople following each other\u201d in the forced flow format allows for every area of the store to be shopped\u2014every part of the store experiences uniform foot traffic. As we well know, merchandise not seen is merchandise not bought. Almost nothing is unseen at an IKEA.<\/p>\n<p>Finally, to get to the part of the warehouse where you buy the flat-packed furniture, you have to go through a \u201cmarketplace\u201d of deeply discounted items, everyday items like napkin holders and light bulbs, casserole dishes and martini glasses. The price is a compelling enough reason to add them to your basket, but again, the forced flow is making a play: shoppers grab them because they don\u2019t want to buck the flow of foot traffic, they don\u2019t want to have to go back and find it.<\/p>\n<p>IKEA\u2019s unconventional choice of layout impacts their sales very positively, so much so that they have over 250 stores in 26 countries, and their profits are in the billions.<\/p>\n<div class=\"textbox tryit\">\n<h3>Practice Questions<\/h3>\n<p>\t<iframe id=\"assessment_practice_8a8a43b5-1c39-4985-af7f-f45e4b108791\" class=\"resizable\" src=\"https:\/\/assess.lumenlearning.com\/practice\/8a8a43b5-1c39-4985-af7f-f45e4b108791?iframe_resize_id=assessment_practice_id_8a8a43b5-1c39-4985-af7f-f45e4b108791\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:300px;\"><br \/>\n\t<\/iframe>\n<\/div>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-2210\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Design and Sales. <strong>Authored by<\/strong>: Freedom Learning Group. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>IKEA Building Warehouse. <strong>Authored by<\/strong>: mastrminda. <strong>Provided by<\/strong>: Pixabay. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/pixabay.com\/photos\/ikea-building-warehouse-furniture-1376853\/\">https:\/\/pixabay.com\/photos\/ikea-building-warehouse-furniture-1376853\/<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/about\/cc0\">CC0: No Rights Reserved<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">All rights reserved content<\/div><ul class=\"citation-list\"><li>Who enjoys shopping in IKEA? (18 Jan 2011). <strong>Authored by<\/strong>: UCL Lunch Hour Lectures. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/youtu.be\/NkePRXxH9D4\">https:\/\/youtu.be\/NkePRXxH9D4<\/a>. <strong>License<\/strong>: <em>All Rights Reserved<\/em>. <strong>License Terms<\/strong>: Standard YouTube License<\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":62559,"menu_order":4,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Design and Sales\",\"author\":\"Freedom Learning Group\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"copyrighted_video\",\"description\":\"Who enjoys shopping in IKEA? (18 Jan 2011)\",\"author\":\"UCL Lunch Hour Lectures\",\"organization\":\"\",\"url\":\"https:\/\/youtu.be\/NkePRXxH9D4\",\"project\":\"\",\"license\":\"arr\",\"license_terms\":\"Standard YouTube License\"},{\"type\":\"cc\",\"description\":\"IKEA Building Warehouse\",\"author\":\"mastrminda\",\"organization\":\"Pixabay\",\"url\":\"https:\/\/pixabay.com\/photos\/ikea-building-warehouse-furniture-1376853\/\",\"project\":\"\",\"license\":\"cc0\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"1386b8ef-c0ac-4ae3-a0e5-a980e371ff20, 90d19ef4-d0f4-48ae-9515-2aef8d2b217b","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-2210","chapter","type-chapter","status-publish","hentry"],"part":2203,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/pressbooks\/v2\/chapters\/2210","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/wp\/v2\/users\/62559"}],"version-history":[{"count":18,"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/pressbooks\/v2\/chapters\/2210\/revisions"}],"predecessor-version":[{"id":6518,"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/pressbooks\/v2\/chapters\/2210\/revisions\/6518"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/pressbooks\/v2\/parts\/2203"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/pressbooks\/v2\/chapters\/2210\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/wp\/v2\/media?parent=2210"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/pressbooks\/v2\/chapter-type?post=2210"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/wp\/v2\/contributor?post=2210"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/wp\/v2\/license?post=2210"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}