Optimizing Selling Space for a New Store
Optimizing selling space deployment is especially critical in new stores to get them off to a good start, but it’s more difficult because you don't have prior sales history to start with. So how do you proceed?
It helps a lot if Marketing have previously defined 6 to 8 customer segments and Merchandise Planners have clustered stores appropriately. In these cases, you can use the sales history for a store or stores with similar customer segment shares for the new store. If you don't have customer data at this level, you can use the average store data for the anticipated cluster the new store will fit into. Otherwise pick the nearest expected like for like store.
You may need to make manual adjustments for new departments or extended assortments being included and similar factors. If the new site is too big, you may need to make provision for leased departments or concessions.
When planning, you will probably deliberately overstock a new store initially, to give it a flying start. However, the fixture space will most likely be what you anticipate for trading levels after the store settles down. Hence you need your space planning methods to reflect this.
If opening new stores or re-locating existing stores is a key part of your growth strategy, upskilling and re-skilling the various job roles involved in planning and managing all this will be key. Martec's recently released Selling Space Management training modules can help you address this.
Contact us to learn how we can help. Or learn more about our space management offer.
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Posted by Brian Hume
12th July 2024
