Grocery Store Design Principles

Introduction

• The lecture discusses the design principles of grocery stores, focusing on efficiency and profitability.
• Emphasis on how store layouts influence shopping behavior and profits.

Entrance and Shopping Path

• Americans' Shopping Path: Prefer counter-clockwise movement.
  • Store Layout: Entrance typically on the right, checkout on the left.
  • UK Difference: Opposite layout due to driving tendencies.
• Study Findings:
  • Americans bypass barriers to maintain counter-clockwise path.
  • Stores with right entrances earn higher profits.
  • Counter-clockwise path increases spending by $2 per trip.
• Impact on Profits:
  • Average American shops 1.5 times per week.
  • Small spending increases accumulate to significant profit differences.

Periphery and Product Placement

• Peripheral Layout:
  • Essential items (milk, meat, eggs) placed around the perimeter.
  • Shoppers exposed to more merchandise.
• Center Aisles: Best-selling items placed centrally to increase exposure.

Shelf Placement and Impulse Buying

• Eye Level as Buy Level:
  • Profitable cereals at eye level.
  • Sugary cereals at children’s eye level.
  • Generic and bulk cereals on bottom shelves.
• Top Shelves:
  • Healthy and small-brand cereals placed here.
  • Buyers of these have clear intent, profits lower.

Endcaps and Special Displays

• Endcap Strategy:
  • Prime location for items retailers want to promote.
  • Shoppers naturally pass endcaps due to store layout.

Case Study: Sweden's Liquor Monopoly

• Reverse Strategy:
  • No endcap displays to discourage impulse purchases.
  • Aimed at promoting moderation in alcohol consumption.

Conclusion

• The lecture outlines how grocery stores are designed to guide customers through a profitable journey.
• Encourages observation of these principles in local grocery stores.