In modern retail, shelf space optimization plays a key role in increasing sales, managing inventory and improving the shopping experience. Proper shelf placement helps not only to increase store profits, but also to reduce costs associated with logistics and warehousing.
Formation of Product Blocks
The first step in optimizing shelf space is the correct formation of product blocks. This allows you to create a convenient navigation for customers and increase the convenience of product selection. Blocks can be formed according to different criteria:
- By product types/properties. For example, in the beer category you can select imported and local brands, and within these blocks you can sort products by type of packaging (glass bottles, aluminum cans, kegs).
- By brand/supplier. In the tea department, you can group products by manufacturer, placing all varieties of tea of the same brand in one place. This strengthens the perception of the brand and contributes to the growth of the average receipt due to the purchase of additional goods.
Limitations in the formation of blocks may be related to commercial agreements with suppliers, so it is important to take into account all aspects.
Principles of Effective Layout of Goods
Once the product blocks are defined, it is necessary to properly place them on the shelves. The main principles of effective layout are:
- Eye level – goods located at eye level receive the most attention from customers.
- Grouping by functionality – products with similar characteristics should be placed side by side to facilitate selection.
- Price segment – within a category, products can be arranged from premium to budget, allowing shoppers to easily compare options.
- The principle of the “buyer’s journey” – the most popular goods should be located at key points along the route, which encourages additional purchases.
- Visual markers – the use of signage, color accents and special highlights helps shoppers find the right products faster.
Analyzing the Effectiveness of Layout
Shelf space optimization is impossible without data analysis. It is important to regularly monitor the dynamics of sales before and after changes in layout. The main indicators that should be taken into account are:
- Share of sales and profit compared to the share of shelf space.
- Inventory turnover rate.
- Number of units sold.
- Seasonal fluctuations in demand.
Category managers and merchandisers should work closely together to evaluate results and make changes to the layout based on real data. Analyze the effectiveness of the layout every time the assortment changes.
Benefits of Shelf Space Optimization
Properly organized shelf space in a store brings many benefits:
- Increased sales. Goods located in the right areas sell faster.
- Reduced stock levels. Optimal layout helps to better manage inventory by minimizing illiquid goods.
- Increased customer satisfaction. Convenient and logical layouts make the shopping process more pleasant and faster.
- Efficient use of retail space. Even small stores can accommodate more assortment without feeling cluttered.
Modern Shelf Space Management Technologies
To maximize efficiency, retailers use specialized shelf space management systems such as PlanoHero. This software solution helps to:
- Place only in-demand product categories.
- Optimize shelf space allocation.
- Regulate relationships with suppliers.
- Reduce inventory and transportation costs.
- Increase profitability of the assortment.
Automated shelf space management systems allow you to make faster decisions, increase store profitability and optimize merchandising processes.
Shelf space optimization is not a one-time action, but an ongoing process that involves analysis, planning and adjusting layout strategies. By using the right merchandise grouping techniques, positioning products based on customer behavior and applying advanced analytical tools, stores can significantly improve their performance and remain competitive.
By investing in effective shelf management, retailers not only increase sales, but also create a better experience for their customers, which is key to long-term success in the marketplace.
