Essquire Department Store Case Study

900 Words 4 Pages
Esquire Department Store was established in 1996 by Arthur Babbit, Sr. After nearly twenty years of business the store has recently began to experience a decline in sales. Management has noticed that over time the movement of customers between departments has also decreased, suggesting that the current facility layout may be the cause. The present layout was designed with the concept of locating related departments close to each other accessible from one main aisle through the center of the store. While this proved successful in the past, the service environment has changed and Esquire needs to adapt to the changes. By implementing a facility design that features the racetrack (loop) layout, Esquire Department Store will be able to maximize …show more content…
This type of structure is often perceived as being very busy and it limits visibility of certain departments. Another disadvantage associated with this layout is the risk of theft due to the lack of visibility. In order to drive customers around the store, Esquire should use the racetrack/loop layout. This layout features a major pathway that loops around the entire store and has access to each department in an effort to lead customers through the various departments. This allows customers to see different angles of the store which enables them to see all of the assorted merchandise available. This new facility layout will allow Esquire to increase customer time spent in the store by up to seventy percent. This design also provides the opportunity to maximize wall space. Eye-catching displays should be arranged around the store near point-of-sale areas where a lot of traffic walks by in an attempt to capture the customers’ attention. The placement and size of the aisles and walkways are intended to direct the flow of customer traffic within the store. Maintaing a sufficient amount of space between …show more content…
When entering a store the customer depends on spacial cues to help them identify where they are, where they should go, and what they should do next. Without this, customers are often left with the feeling of confusion and anxiety. Implementing way finding techniques throughout the store will help facilitate customer orientation. A well thought out layout will promote an approach behavior for the customer resulting in repeat visits, exploration, and spending money. The appropriate layout will enhance the customers perception of the service while communicating order and efficiency. This will contribute to a positive shopping experience and generate higher customer satisfaction and encourage social interaction among customers and employees. The convenience of the customer should also be kept in mind when designing the layout of the service delivery system. A store with an entry way free of clutter is perceived as open and inviting to customers. An important behavior of customers to keep in mind is their need for personal space. The facility should be designed so that all customers feel comfortable and are not over crowded or bumping into one another. Studies on consumer behavior have shown that customers naturally tend to proceed to the right when entering a store. To increase product exposure, checkouts and registers

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