PL Buyer: Infrastructure-Store Design
Through a special arrangement, what follows is a summary
of part of a current article from Private Label Buyer, presented here
Supermarket remodeling can start at $50,000 and climb to $500,000 per location
depending how much work is done. The upside — sales in a remodeled store can
increase as much as 40 percent over the course of several years, claims Christopher
Studach, director of design for King Retail Solutions, a retail design company.
"Most stores see a seven to 10 percent increase in sales within a year
when they do an upgrade," he said.
A remodel can be also sharply lower operating costs thanks to installation
of more efficient lighting, heating and cooling equipment, he notes.
To make sure any remodeling investment is spent wisely, retailers should consider
creating a logical plan for overall store layout and then sweat the remodeling
small stuff such as where to put private label products, what types of lights
to use to make them look enticing for passing shoppers and even what kind of
shelf tags will best grab shoppers’ attention without making the shelves look
Laying out a store consists of not only knowing what color schemes or what
type of décor to use, but also how to place products on the shelves.
Better lighting alone can help a store increase its sales by a few percentage
points, according to Ken Stevens, vice president, information technology, for
Once the store layout and lighting choices are made, stores can start thinking
on a more macro level — where should private label products be located to
One way to attract consumer attention is by using a color shelf strip that
matches the color of the product’s packaging to help draw attention to the
product, said Mr. Studach. By using the strips, retailers can be assured they’re
following the design of planograms. Another bonus to using image strips is
the fact that when an item is out of stock it can quickly be reordered and
restocked in the right place every time.
Private label retailers should also look at promoting more cross-merchandising
in the store, said Dan Phillips, project manager and designer for Phillips
Enterprises, a marketing firm. "Giving consumers the chance to test your
products helps them make up their mind."
Using advanced technology is also helpful in laying out a store diagram and
providing a schematic of where items should go to help retailers.
Undergoing a remodel can be well worth the investment to keep customers excited
about shopping the store. Simple changes such as lighting can help retailers
accomplish two things: save on energy costs and properly highlight their private
"The very process of remodeling generates enough excitement to spark
sales," said Mr. Studach.
Discussion Questions: What core advice would you give to a retailer or store exploring a remodel? What remodel investments typically deliver the most/least ROI?