3

Setting Up a New Store

Site Selection
Establishing and Managing Inventory
Pricing Your Products for Retail
ParkerStore Signage
Building Exteriors and Entranceways
9 Store Interiors
Lighting
Color and Material Standards
Fixture Terminology
Store Layout and Design
Sample Floor Layout and Design

2 Setting Up a New ParkerStore

Operational Considerations

Setting Up a New Store

Establishing a new ParkerStore includes considering many factors that may vary
depending on your location. This section is designed to provide you with guidance
based on the experience of hundreds of ParkerStores.

Site Selection
Selecting the best possible location for your
ParkerStore is critical to your success. In addition to
evaluating population statistics, which are generally
good indicators of business opportunity, you should
review business density and easy access for any
prospective location. There are several relevant
factors to consider:

Related retail or industrial outlets

Building size(s) available
Neighboring businesses
Competitive businesses
Growth potential
Visibility to customers and suppliers
Road access and traffic conditions
Parking
Access to services
Local regulations

GLOBAL MARKETING AND OPERATIONS MANUAL: Setting Up a New ParkerStore

RedZone Market Area Analysis

Parker has developed a site evaluation approach
known as the RedZone, which is based on the typical
customers of a successful ParkerStore. The aim of
a RedZone study is to position a ParkerStore in
a geographic area that represents the highest
opportunity for success, relative to a ParkerStores
traditional customer base.
The following list broadly captures the customer
categories that have been identified as strong
prospects for the products and services offered
by ParkerStores:

Airport ground service suppliers

Boat builders and repair shops
Boiler shops
Construction
Conveyor equipment users

Farming and agriculture

Forestry/sawmills/paper mills
Furnaces/steel mills
General industrial machinery users
Industrial truck and tractor owners

Mining, oil and gas services

Automotive manufacturing
Railroads/line-haul operators
Refrigeration and heating service
Scrap and waste management concerns
Sheet metal fabricators

Prior to site selection, a Red Zone analysis or similar

survey should be conducted to quantify the market
potential of any sites under consideration.

GLOBAL MARKETING AND OPERATIONS MANUAL: Setting Up a New ParkerStore

Other Considerations
When evaluating a store site, its proximity to an
adjacent customer base is important to consider.
Some other access-related factors that are easily
overlooked include:
Access to Roadways
Amount of traffic at peak/non-peak business times
A sites location relative to traffic flow, i.e. will
customers be able to enter and exit your parking lot
easily and safely
Proximity to complementary businesses currently

serving your prospective customers
Accessibility to public services
Governmental regulations and restrictions
Building Size
Experience demonstrates that the total floor area for
successful ParkerStore operations range from 1,000 to
3,000 square feet (300 to 900 square meters). This is
a guideline only and is not the sole indicator of a stores
potential for success or failure. Many successful
ParkerStores around the world operate from
much larger or far smaller spaces. Consult your
Retail Specialist for guidelines specific to your area.

Local Regulations
Regulations affecting businesses vary greatly from
country to country and from one municipality to
another. Thoroughly research all regulations
that are likely to affect your business and seek
legal counsel if necessary.

Rules concerning exterior appearance

Regulations that may restrict signage
Zoning rules/designations for business
Permitting
Tax considerations
Laws restricting the handling of waste materials
Regulations concerning other environmental
factors, e.g. noise, energy use, water use,
sewage treatment, fire safety

Hidden Costs
Aside from geographic location and physical size,
other factors can have a dramatic impact on a
locations viability. Dont forget to consider these
hidden costs:
System upgrades: e.g. electrical, climate
control, plumbing
Cosmetic renovation requirements: e.g. interior
and exterior appearance enhancements
Utility costs: electricity, gas, water, sewer, etc.
Ongoing maintenance services: waste removal,
cleaning service, snow removal landscaping, etc.
Potential (or lack of) for future expansion.

GLOBAL MARKETING AND OPERATIONS MANUAL: Setting Up a New ParkerStore

Site Selection Checklists

Use these convenient checklists to help you
evaluate prospective building site options.

GLOBAL MARKETING AND OPERATIONS MANUAL: Setting Up a New ParkerStore

Anticipated Cost Summary

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Initial Start-up Cost
Ongoing Cost/
Monthly
Renovations/upgrades to the building or facility

Site Conditions
YES/NO Description

Maintenance fees
YES

NO

Lease or mortgage costs, including initial fees

Adequate floor space

Water

Adequate parking

Sewage

Potential for future expansion

Telecommunications

Adequate customer base

Electricity

Potential for expanding customer base

Fire protection services

Adequate road access

Security protection services

Potential for sustained or improved road access

Waste management and/or disposal

Nearby non-competitive businesses serving your target market

Parking

Access to all necessary services

Building permits

Will zoning or other regulations unduly limit current or future use?

Will your ParkerStore be the only store of its kind in the area?
The greater the number of YES answers,
the better the sites potential.

Property taxes
Cleaning services
Other initial building-related costs,
e.g. new construction
Other monthly building-related costs,
e.g. landscaping services
Inventory
Other
Other
Total Start-up Cost (Sum of Column A)
Ongoing Monthly Costs (sum of Column B)
Total Area (sq. ft./sq. meters)
Cost per sq. ft./sq. meters (Cost/Area)

GLOBAL MARKETING AND OPERATIONS MANUAL: Setting Up a New ParkerStore

GLOBAL MARKETING AND OPERATIONS MANUAL: Setting Up a New ParkerStore

Store Interiors
Establishing and Managing Inventory

Your store environment sets the stage for your

interaction with your customers. If your store is
easy to navigate, well stocked and creates a positive
environment, the expectation will be that your
service will be of an equally high level.

ParkerStore Signage
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Offering a wide selection of high-quality Parker products

to serve a diverse market base is a vital component of
the ParkerStore philosophy. While its nearly impossible
to say with precision what the right volume and mix is
for every market, in general, your inventory should be:

Large enough to support your customer base

Diverse enough to support a variety of businesses
and industries in your marketing area
Representative of all Parker Hannifin products
available to your retail operation

Careful inventory management and regular adjustments

based on usage and sales will ensure a higher number
of turns for your store.
Your Retail Specialist will be instrumental in helping
you determine the right mix of products for your
store, based on your location and the markets you
serve. Please consult with your representative for
recommendations as you prepare your initial
store inventory.

Pricing Your Products for Retail

Your ParkerStore is a need-based business. Customers
are typically willing to pay more for the convenience
and service your store provides. This gives you wide
latitude to price your products and services based on
their exclusivity and uniqueness, the availability of
competitive alternatives and your ability to deliver
them at the time of your customers need.

ParkerStores are expected to have appropriate

exterior signs that properly use the ParkerStore logo
and that identify your status as an independent owner
and operator. Your ParkerStore should display at
least one of the following exterior sign types, as local
building codes permit, but may include more than
one as appropriate.

Pole-Mounted Sign: Single or double

poles, double faced, illuminated

Building-Mounted Sign: Single

and illuminated

Monument: Double or single faced

and illuminated

Window Appliqu: Applicable in

cases where building or zoning
rules will not permit building-or
pole-mounted signs.

When contracting the development of directional

signs, it is your responsibility to ensure that your
supplier refers to the ParkerStore Branding Standards
(www.parkerid.com/parkerstore) and adheres
to the specified colors, materials, type faces and
identity elements as shown.

Taiwan

Preferred sign vendors have been established in

many regions around the world. Your Retail Specialist
representative can provide details for the program
in your area.

To ensure that the physical experience with the store

matches the high-quality service you will provide, pay
special attention to:

Lighting

Building Exteriors and Entranceways

Combining natural and artificial lighting to create a

well-lit atmosphere makes customers feel welcome
while successfully showcasing your products.

Your stores exterior will give your customers their first

impression of your ParkerStore. Pay special attention to
your customers experience between the parking area
and the door to your store.

General Lighting provides overall illumination for your

store. Depending on circumstances, this can be a
combination of natural and artificial light, including
overhead fluorescents.

Check to ensure that this high-traffic area

remains free of obstacles or hazards
Always provide adequate exterior illumination.
Clearly post your hours of operation on the
entry door
Consider positioning a floor mat near the
entryway and/or a bin where customers can
drop off their hose assemblies
Install a chime or signal to alert you of
customer arrivals

Task Lighting places a light source in an area where

work needs to be done. Its goal is to illuminate detail
and reduce fatigue and eyestrain. Your workshop area
may have several task lighting sources to ensure proper
illumination of work areas.
Accent Lighting is lighting that emphasizes an area
or an object in a room. In a store environment, this
might take the form of spotlights or floodlights directed
at products showcased on your wall.

GLOBAL MARKETING AND OPERATIONS MANUAL: Setting Up a New ParkerStore

GLOBAL MARKETING AND OPERATIONS MANUAL: Setting Up a New ParkerStore

Color and Material Standards

Fixture Terminology

Store Layout and Design

Color: Think of your stores floors, walls and ceilings

as backdrops for showcasing product. Generally
speaking, it is encouraged to keep the general
environment neutral in tone, using whites, off whites,
grays and blacks.

Gondola: The primary component for

segmenting your store into aisles and
product displays. These modular units
use pegboards or slatwall units to
accommodate shelves, bins or panels
for displaying products.

Consider your customers when designing each of the

specific ares in your ParkerStore:

Surfaces: From a practical standpoint, its important

to choose surfaces and materials that are resistant
to staining and are easily cleaned. Below are some
suggestions for surfaces that have shown to be
particularly effective in ParkerStores:
Counter tops: Plastic laminate, solid-surface
materials, or stainless steel. Avoid glass, granite or
other materials that might chip or shatter.
Floors: Vinyl composition tile (VCT), industrial grade
ceramic and porcelain tile. Avoid carpet and rugs,
with the exception of rented floor runners that can
be cleaned on a regular basis.
Walls: Slatwall or pegboard with a high-quality gloss
or semi-gloss paint that can be scrubbed.
Fixtures: Should be modular, of a high quality and
a light or neutral gray color.

Endcap: At the ends of each aisle,

these fixtures provide ideal areas to
feature products.
Wall Unit: Similar to a gondola in shape,
wall units typically are taller and, as
the name suggests, placed against
a wall.
Point of Purchase Display: Special
feature area designed to draw attention
to a product at or near the point of
checkout. Typically positioned in
proximity to the trade counter.
Slatwall: Retail fixture type that allows,
through specialty hardware, a wide
variety of shelving, hooks or other
display mechanisms to be utilized to
highlight products
Pegboard: Similar to slatwall, a retail
fixture type that utilizes specialty
hardware to display merchandise via
a uniform series of holes punched
in the substrate.

10

Hospitality Area: For waiting customers, this area

offers refreshments that a customer can enjoy while
waiting. It should be kept clean and replenished at
all times.

Retail Space: This area should encourage

customers to shop and should be well
Assembly Area/Shop: Typically behind the trade
merchandised and stocked.
counter, this area should make good use of efficient
Trade Counter: This is where the most customer
workflow and should also have easy access to your
interaction, and the actual transaction, will take place.
warehouse area.
Its important that it is highly visible, free of clutter
Warehouse: Used for material and bulk storage,
and easily accessible.
the warehouse is not typically seen or trafficked
Digital Display: Displaying video in a store
by customers.
environment is a growing practice among
ParkerStores. Use digital displays, computer
Sample Floor Layout and Design
monitors and televisions to encourage customers to
ask questions about our products and services.
The following illustration suggests a store layout
Technical Information Center: Provides access
that has proven effective in terms of merchandising,
to Parker catalogs, brochures, bulletins and other
customer service and traffic flow.
product information. Typically located in proximity
to the hospitality area.

Loading/Freight
Entrance

Meeting
Room

Warehouse

Technical
Information Area

Assembly
Area/Shop
Trade
Counter

Digital Display

Office

Store
Entrance
Product
Display/
Retail Space

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GLOBAL MARKETING AND OPERATIONS MANUAL: Setting Up a New ParkerStore

Operational Considerations
The recommended position for a trade counter is
opposite the entrance to the retail space but visible
from it. This allows the customer to interact with the
store environment (shop) before engaging the counter
personnel. Consider the following factors:

By the Numbers:

70%: Percent of your floor space

that must be dedicated to Parker
products

30%: Percent of space that may

be dedicated to non-Parker
complementary products

0%: Percent of products that you

should display or sell that is in
direct competition with your stores
core Parker product line(s).

75%: Percent of interior floor

space that should be dedicated
to customer areas.

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Visibility and Security: A person working the trade

counter should be able to see all customers in the store.
This not only lends a feeling of security, but it also
allows a counter manager to recognize when
customers might have questions while shopping.
Access to Inventory: The trade counter should
be adjacent to the area dedicated to non-retail
(warehoused) inventory.
Assembly/Production: The trade counter should be
within easy access to your production facility so that
you can efficiently crimp hoses or bend tubes for you
customer with a minimum of steps. Setting up your
shop to match your work flow, from inventory
selection to cutting to crimping to the sales
counter, can greatly reduce fatigue over time.

GLOBAL MARKETING AND OPERATIONS MANUAL: Setting Up a New ParkerStore

Merchandising: Smart merchandising will attract the

customer to product and literature displays without
creating obstacles to finding help at your sales counter.
Remember, most ParkerStore customers come to your
store with a specific purchase in mind. Your job is to
make it easy for customers to find what they are looking
for, while attracting them to various promotional
displays along the way.
Product Categories: It is always a good idea to create
an orderly floor plan that groups like products together,
for customer convenience. Most successful stores find it
advantageous to assign sections of their stores based on
product categories, for example, hydraulics, pneumatics,
seals, instrumentation, filtration or valves. To create
more targeted promotions, use your endcaps, wall
displays and point of purchase displays to create special
product groupings that highlight a particular product or
application on a routine basis.

The Importance
of the Trade Counter
The most important area of your store
is the place where the opportunity for
customer interaction is the greatest.
The trade counter is the literal and
figurative nerve center of your retail
operation. It is the location that your
customers gravitate toward when
they need advice and, not coincidentally,
the location where your counter
manager spends the majority of his or
her time. It is also the transactional hub
of the store, where your customers pay
for the goods and services they buy and
the gateway to the stores fabrication
and warehousing areas.
Pay close attention to the appearance
and functionality of your trade counter.
It should remain:
Highly visible
Approachable, accessible and inviting
A location to showcase information
Uncluttered and well maintained
A place for point of purchase displays

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GLOBAL MARKETING AND OPERATIONS MANUAL: Setting Up a New ParkerStore

Notes:

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