Are you using your store space wisely?

Tips for achieving optimized macro space optimization

Retail is a continuously evolving, competitive industry driven by consumer demand. To succeed, it’s critical to allocate the correct amount of space to products to be profitable and provide a satisfying shopping experience. In many store formats, the reallocation of space at the department, category or sub-category level can be both time consuming and expensive. Therefore, it’s vital to make sure to allocate space right in the first place. If you don’t, you run the risk of losing substantial business to competitors.

Macro space optimization is the practice of ensuring category and departmental space is allocated appropriately in store to enable retailers to achieve maximum profit. Today, many retailers are using computer-aided design (CAD) systems or manual spreadsheets to attempt macro space optimization. These methods only provide a top-down view of the store, which enables a retailer to allocate space, but does not take consumer demand in account. Also, these methods cannot advise the optimal amount of space or product mix that will provide the most profit. This leads a retailer to overlook profitable opportunities.

To use all store space wisely, it’s important to factor in space recommendations for categories and departments. This can be done by taking your current CAD system to the next level by incorporating automated technology that incorporates a science-based approach. Combining science with art will ensure stores are profitable and aesthetically pleasing. Below are top tips to begin the journey to efficient macro space optimization:

Say goodbye to spreadsheets.

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