The retail environment is evolving into one characterized by compact, efficient spaces rather than the large stores designed to facilitate one-stop shopping that has dominated during the past couple of decades. In fact, store sizes are the smallest they've been in nearly two decades, and while online shopping has reshaped buying habits, customers still spend nearly 85% more money in physical stores than they do online, according to Imagine Group LLC.

The design and merchandising services firm created several guidelines to help retailers boost in-store traffic beyond the major strategies that include optimal location, broad product variety and effective pricing strategies. Retailers should employ a nuanced approach given the evolving nature of brick-and-mortar retail, according to the report. The key is to view the space through the customers' eyes and with their shopping journey in mind.

For retail spaces of all sizes, it's important to consider traffic patterns, ensuring a smooth flow and an engaging customer experience, said the firm. Smaller spaces in particular require strategic planning to maximize efficiency and create a welcoming atmosphere.