@akbarkhan Sir your post is indeed thought-provoking. Below are few points which come to my mind in this regard and also some pictures, links etc to support the same.
A good retail store layout starts on paper, which should consider aspects like building specs, customer traffic flow, product placement, and more, before even installing a single display. A keen thought should be given to this aspect whenever someone goes in for a retail business (be it an individual store keeper or a company going for forward integration with its own retail outlets). This planning helps you create a store layout that encourages customers to browse and buy and also create a perception of the proposition that you are offering to customers (like: Luxury/High-end products, Good products at best/lowest possible price).
Let me use some examples to explain my point lucidly:
If you notice Super Market Stores like Big Bazar, Spencer, Walmart etc, the layout they have gives you a sense of a market place which offers you huge variety and at a lower price. To convey this message to its customers, these stores are designed to have steel/plastic shelf, visible AC vents (instead of having a false ceiling) and very modestly styled interiors.
Another good example is the factory outlets that we often come across while shopping in city markets (not high-end Malls). Again, if you notice the interiors of such a store is very raw in nature. They don’t have fancy displays, usually stack products (clothes, shoes, belts etc) in bundles, visible AC vents etc.
To summarize, I will say that the way Redtape has stacked its shelves with shoe boxes instead of elegantly presenting their variety of SKUs could be a conscious call to convey the offering they have for customers i.e. good merchandise at very attractive price (factory price).
Store designing is an important part of building your brand in the minds of the customers and professional/experts use a variety of ways to engage a customer and build an image about the brand.
Also, if we deliberately think about our last shopping experience we would come up with several instances of where we had walked into a store and the ambiance of it conveyed us the type of brand it is.
In my experience, I remember walking into a store which had huge wooden shelves, leather sofas and a very limited but elegantly presented products and with no surprise it was a luxury brand store with price points which I would say reflected class. On the other hand, there was a store which had all its products bundled together and it looked like very less thought was given towards designing the store and again without any surprise the prices at which the products were offered, I can say was cheap.
So, it all depends on the customer base that you are targeting and the perception that you want to build in the market about the brand or its products.
However, all said and done, as an investor we should be vigilant of the execution and should evaluate it from every possible aspect but, within the rules of the game that it is into.
Below are some images of factory outlet stores of brands like Puma, Skechers & Nike. It looks similar to the layout we have for few of the Redtape stores.
Below are the links to few articles that have explained about store design and layout styles.
- How To Create Retail Store Interiors That Get People To Purchase Your Products- Click here.
- Retail Floor Plans 101- Click here.