Retail Space Planning is Integral to Your Store’s Success!

Retail Space Planning is an ambiguous description of several facets of retail operation. By one definition the term, this type of planning refers to product placement or departmental adjacencies. Another definition describes retail space planning as the study of the distribution of space allotted to particular categories in relationship to their productivity and their inventory balances. Still another definition characterizes the term more literally and refers instead to store fixture layouts.

You must consider each facet of retail space planning in depth. The locations of product placement, for example, must not only efficiently utilize store space, but must also make sense to shoppers. The plot thickens here, however, because when we say “shoppers” we imply a collective mentality. No such collective mentality exists, of course, so a location that makes sense to one shopper does not necessarily make sense to the next or to the most. This very thought process is the rationale for cross merchandising. Cross merchandising is a retail space planning term that refers to placing the same product in more than one location of your store, and perhaps each location that might make sense to shoppers. This technique, of course, must be balanced with the restrictions of limited store space.

In addition, you must make your plans as regards the sales and inventory productivity of individual departments. Many managers are unaware of the equations that can help guide them through the process of which departments to expand and which ones to contract. And even after those determinations are made, then a more difficult question presents itself. How much do we grow or shrink the department for maximum productivity? This is store management in its most refined form, however and the process can help produce successful operations from marginal ones.

And finally you must address retail space planning as regards fixture layout. Interior store design should escape the ordinary and be a point of distinction for your store. This is integral to your store’s success because not only does it become your store’s shopping environment, it will also be its distinctive signature and therefore, part of your store brand.

Post time: 09-02-2017