Costco Presentation Audit
3. PRESENTATION AUDIT: Store Layout and Design
Store: Costco Wholesale Location: 9010 Michigan Rd. Indianapolis, IN
Date: 10/24/2016 Time: 2:00PM
Layout Type: Boutique:_____ Racetrack __x___ Grid_____ Other (describe) ___________________
CHARACTERISTIC | RATING |
Visual Communications |
|
Exterior signage (store name and logo) reflects retailer’s merchandising mission. | 10 |
Directional, departmental and category signage is clear and helpful to navigating store. | 8 |
Point-of-Sale signage is clear and professional rendered (not torn or handwritten). | 10 |
Attractive "Lifestyle Graphics" used to enhance brand image. | 6 |
Store Planning |
|
Layout is appropriate for store type. | 10 |
Departments are situated in most appropriate locations. | 5 |
Store layout effectively draws people through store with maximum exposure to merchandise. | 10 |
Effective and creative use of wall space. | 7 |
Store Design |
|
Storefront design (signage and architecture) is up to date and reflects desired store image. | 10 |
Interior store design (architecture and finishes) is up to date and reflects desire store image. | 7 |
Effective use of “Decompression Zone” to help customer acclimate to store environment | 8 |
Lighting design effectively structures space and creates ambience consistent with store image. | 8 |
Effective use of sensory marketing (sound and smells) to communicate brand image. | 6 |
Visual Merchandising |
|
Displays feature a theme with a single dominant, color, design, collection or idea. | 8 |
Feature areas are backed up with sufficient merchandise. | 10 |
Fixtures consistent with merchandise and overall ambiance of store. | 10 |
Fixtures are easy to shop. | 8 |
Merchandise adjacencies are logical and encourage add-on purchases. | 5 |
Lighting effectively highlights merchandise. | 10 |
OVERALL AVERAGE RATING OF STORE LAYOUT AND DESIGN | 7.7 /10 |
Instructions:
- WHAT? Visit your retailer to collect the following information. Describe each element of presentation strategy.
- SO WHAT? Evaluate your experience. Are the presentation elements you observed effective at in building and/or sustaining the retailer’s desired brand image? Why or why not?
- NOW WHAT? What are the strategic implications of your findings? How could/should “Presentation” be enhanced to improve the customer experience and brand loyalty?
John Perdikaris
Professor King
MK 473
26 October 2016
Costco Presentation Audit
Costco locations are huge, averaging around 145,000 square feet. Compare that to the average Wal-Mart which is around 40,000 square feet. It is almost impossible to miss a Costco while driving, this location was a noteworthy distance off the road but was still very hard to overlook, due to the massive signage at the entrance. With that being said, Costco carries less options of the same product. The result is a huge warehouse-feel that are lined with Chep and PECO brand shipping pallets on which the product arrived. As you walk in there into the 9010 Michigan Road location there is an indoor-outdoor overhang that is heated to acclimate customers from the outside elements. The floors are cement and yet even with the heavy foot traffic they appear clean and polished. Large signs can be seen from almost anywhere in the store with familiar Costco-red background and large white letters that are used to point out broad categories of products such as, “Optical, Fresh Produce, Dairy, etc.” The vast amount of space is used wisely, the warehouse-store does not feel too cluttered but it does not feel empty either. The merchandise is well lit but also well maintained. With much of the product stacked on pallets, it could be easy for lazy customers to make a mess of the displays, but they seem to be kept in check. I was especially impressed with the clothing and apparel section. Using large table the clothes were all organized neatly, even though it did not feel like there was an employee keeping an eye on every article like it does at some clothing retailers. The overall atmosphere of the store is a little cold which could be due to the warehouse style, as a Costco lover it is not something that turns me away from shopping.