Store Layout and Retail Operations
What this domain tests
This domain covers how selling space is planned and how a store is run day to day: layout types, fixtures, planograms, opening and closing routines, and the KPIs used to judge performance.
Layout types
- Grid: parallel aisles, standard for grocery and pharmacy; efficient, easy to navigate, but monotonous.
- Free-flow: fixtures placed freely, suits apparel and accessories; encourages browsing but can confuse and wastes space.
- Racetrack / loop: a defined aisle loops customers past all departments, used in department stores and large formats.
- Herringbone and spine: variations used in smaller spaces.
Fixtures and space rules
Gondola (double-sided aisle fixture), four-way and round racks for apparel, wall units, end caps. The planogram is the diagram fixing where each SKU sits, how many facings it gets and at what height. Hot zones: the decompression zone just inside the entrance (keep it uncluttered), the power aisle, eye-level shelving for high-margin items, and the checkout queue for impulse purchases.
Operations and KPIs
Opening routine: shutter, lights, cash float, housekeeping, stock top-up, POS check. Closing: cash tally, day-close report, returns to floor, security check. KPIs: footfall, conversion rate, average transaction value (ATV), units per transaction (UPT), sales per sq ft, shrinkage.
Worked example
Footfall 600, bills 180, sales ₹90,000, units sold 270. Conversion = 180 ÷ 600 = 30%. ATV = 90,000 ÷ 180 = ₹500. UPT = 270 ÷ 180 = 1.5. Reasoning: each KPI has its own denominator - footfall for conversion, bills for ATV and UPT - so mixing denominators gives wrong answers.
Traps that cost marks
Swapping ATV (value per bill) with UPT (units per bill); recommending a free-flow layout for a grocery store; forgetting that the decompression zone should stay clear.