Ever walked into a retail space and felt inexplicably drawn to a certain display, or perhaps overwhelmed and eager to leave?
The layout and design of a store are far from accidental. In fact, they are powerful tools that tap into the psychology of the customer, subtly influencing their perceptions, emotions, and ultimately, their interactions with the products/services on offer.
For businesses, figuring out this connection (how the design affects our minds and how we shop) is super important. You want to create a retail space that not only shows off your products but also makes the customer feel good and want to stick around.

The First Impression
A retail space’s immediate entrance is the most important part of your retail space – this is called the ”decompression zone”, it’s the area where the customers transition from the outside world and into your store. One naturally slows down at this point, as they are no longer in transit.
To prevent overwhelming customers in this particular area, avoid cluttering it with excessive signs or products. Instead, focus on creating an inviting atmosphere. Position your top-selling items immediately after this initial zone, as customers are still orienting themselves upon entering your retail space and are less likely to make purchases right at the storefront.

Retail Space Layout
Think of your store’s layout as a helpful, silent salesperson. A good one will effortlessly guide your customers, making it easy for them to find what they’re looking for and really show off your products.
Place new arrivals, bestsellers, and promotional items in high-traffic areas like the entrance (just beyond the decompression zone), along main aisles, and at the checkout.
Want to boost sales? Eye-level is buy-level:
The easier it is for a customer to see your product, the more likely it is for them to purchase it.

Types of layout for your retail space:
- Grid Layout (Supermarkets, Pharmacies): This retail space is great for showing off a lot of products in the aisles. However, it can sometimes feel a bit uninspiring. That’s why it’s important to thoughtfully place end caps and other promotional displays to grab shoppers’ attention.
- Loop/Racetrack Layout (Department Stores): Steers customers along a predetermined route, guaranteeing exposure to a broad selection of goods.
- Free-Flow Layout (Boutiques): Offers more flexibility and can create interesting product groupings, but may require more effort from customers to navigate and see everything.

Sensory Stimulation
Customers are more likely to engage with your products if they find the retail space more stimulating to their senses.
- Lighting: Effective store lighting is crucial for both functionality and brand identity. Well-lit retail spaces feel inviting and highlight products, encouraging exploration. More importantly, signature lighting styles transform a store’s atmosphere and reinforce its brand, creating a memorable and immersive customer experience.
- Music: Don’t take something as small as music lightly when setting up a retail space. Music can subtly influence a customer’s mood, shopping pace, dwell time, and spending. When congruent with the brand and target audience, the right music can get a lot done – for example, classical music at a wine shop can influence customers to purchase something.
- Scents: Think this isn’t true? Consider your first impression when walking into a car dealership or a beauty salon. It’s often the distinct aroma of new cars or salon products that immediately registers, proving just how impactful smell can be.

The Gruen Effect
Named after architect Victor Gruen, this phenomenon refers to the moment the customer enters an intentionally confusing retail space; if the customer enters with a specific purchase in mind, this distraction makes them forget their original purpose and more susceptible to impulse purchases.
It’s all about transferring the shopper’s mindset from a focused mission to a more open and receptive state.

How can Avenue 77 help you set up a retail space?
We can provide guidance through every stage, giving you tailored solutions and the retail space itself.
With Avenue 77, you gain a partner dedicated to transforming your retail space into a thriving and customer-friendly environment. Save time and increase efficiency with our professional team’s help.
Learn more about our retail spaces here
Or get in touch via email:
amanda.balzan@avenue77.com.mt