Base Merchandise Location and Space on Profits

By Steve Di Orio
Posted in Store Design
On March 14, 2012

It’s best to allocate more space to an item that generates more profit dollars. That makes sense, but you may now be asking: How much space?

 

The ratio is based on a per store average. So, if the average amount of space allocated to a product in your store is 4 feet, then anything over 4 feet sells more.

 

Also remember, however, that these items should be neatly displayed so that it attracts attention and creates sales. In other words, placing a bunch of merchandise in the middle of an aisle with a sign atop the stack does not constitute a neat display. Just as placing a bunch of high-profit items on store shelving in a high traffic area, but with no semblance of order, is not doing your merchandise justice.

 

Thus, floor displays should have ample space around them with good symmetry, and shelving should be neat.

 

Another mistake to avoid is not rotating items often enough, which not only can make your store feel stagnant it can also make it seem empty. So, rotating merchandise every two to three weeks is good practice for keeping it new and fresh, since statistically customers will visit your store on average 20 times per year.

 

Again the high profit items should always be given the larger space and more important locations, but always remember that neatness, creativity and a little freshening means that you care about your store, the merchandise you sell and your customers.

Steve Di Orio

Steve Di Orio

Steven DiOrio has been with Handy Store Fixtures for over 11 years. After becoming the Marketing Manager in 2006, very recently he was named Director of Marketing. Currently, Steven is pursuing his MBA from Montclair State University with a specialization in Digital Marketing. When not at work, he loves to travel, play golf, exercise, and talk all things search engine marketing.