N4 Entrepreneurship & Business Management 4.2 Layout
The layout of your business is only really important for the retail type of business. Retail shops plan the position of their merchandise (products) very carefully. Products are placed at various places in the shop for very specific reasons. They don’t want you to forget anything and even better, they want to tempt you to buy a few things you do not really want. For this reason, fresh produce such as meat and dairy products are normally right at the back. The reason is that most customers will need them and therefore need to walk right to the back and pass all the other shelves. This will almost certainly remind them of something that is not on their shopping list but that they need. Think of all the products that are displayed next to the cashier. You are almost forced to look at them while you wait to pay. Resisting the temptation is very difficult.
PAUSE FOR THOUGHT
More considerations • distance from your customers • accessibility for deliveries accessibility by rail
Positioning of products in your shop Merchandise
Reason for buying Necessities Impulse goods
You need them everyday e.g. milk, bread, meat and vegetables
Items that look nice to eat (chocolates) or beautiful to put in your house – you don’t need them
Convenience goods Are low priced items that you buy frequently e.g. bath and soap, car wash, etc?
Speciality products and luxury items
Activity 12
Products special to your shop for which customers are prepared to travel
Placement in the shop
Right at the back of the shop (corners)
Next to the cashier or on the main isle
Different places all over the shop
Centre aisle of the shop
Visit the nearest retail shop in your area. Use this basic layout and note where the different products are placed. Can you come up with reasons why they are placed on a specific shelf? Complete the floor layout for your own business.
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