Your location is 10 meters wide (opening into the mall) and 15 meters deep. (Plus there is approximately 30 square meters of storage at the back of the store.) You must decide the space allocations for your five major product lines: Low-priced clubs, cheap cardigans, bags and brellas, used balls & cheap tees, no-frills footwear. Use the following information to calculate the estimated space needs and then design a layout for the new store.

a- ‘Low-Priced Clubs’ is the major product line. The average industry sales for golf clubs is $5500 per year per square meter. The franchise estimates that your sales should be similar to last year’s sales in the Red Deer franchise which were $297,000.

b- The other four franchisees have used 4% of their space for used balls and cheap tees.

c- “Under Par” stocks 4 cardigan styles in 5 fashionable colors. They like to display two cardigans in each of the following sizes: Men’s S, M, L, XL, XXL and Women’s P, S, M, L, XL. The company provides shelving units which attach to the wall. Each unit can display 40 sweaters and takes up 1 square meter of selling space.

d- Footwear usually takes up 12% of the store floor space.

e- ‘Bags and Brellas’ have been given 10% of the floor space in the other franchises.

f- Plus 9 square meters are needed for the checkout counter. (3 x 3 meters).

Sacrifices may have to be made if you are short of space. Assume that you need to include pathways through the store taking up about 50 square meters of your store space depending on your design. Use a dashed line to show major pathways through the areas of your store.
 

B) Complete the chart below. 5 marks Calculate the Gross Margins per square meter. Annual Sales Cost of goods Gross Margin Square sold Meters Low-Priced Clubs $297,000 Bags & Brellas $80,000 Used Balls & Cheap Tees $48,000 $160,000 $40,000 $16,000 Cheap Cardigans $190,000 $50,000 No-Frills Footwear $60,000 $30,000 Gross Margin / square M