Retailers roll their diceto gain market spotlight for their merchandise. A well planned and managedspace in a retail store is the touchstone for a retailers success in business.

Apparel retailing is a matureand extremely competitive arena which has to deal with demanding, diverse andwell-informed consumers. The changing retail landscape is now adding morepressure on the retailers to retain their slice of the pie in the global, aswell as the domestic market. Apparel retailers require a proper understandingof the consumers psychology, and play their cards right. Attracting shoppersand converting potential clientele into long term and loyal customers dependsupon how the retailer is able to portray his merchandise, and the quality ofhis customer service. Therefore, it is more important for a retailer to makeoptimum utilization of the space available in his store so as to create anappealing in store arrangement.


Space planning had been in theretail structure since the time of inception of the retail business, but itsapplications, benefits, and dimensions keep evolving, reaching new heights withthe passage of time. A well arranged store display attracts the shoppers,making them to check out the apparel merchandise, and influencing them to buythe clothing. Using the available space in a right manner will enable theretailer to accentuate his merchandise and arrange them in an optimum position.


Space allocation tools:


Space allocation tools areavailable that enables retailers to determine the optimum space for fixtures,and merchandise based on the analysis of product placement, usage andperformance. Space allotment is done hierarchically with both top and bottomviews of performance. A detailed planning for space allocation can be donethrough any of the following ways:

  • Exact floor plans can be obtained through CAD drawing with precise measurements.
  • Appropriate square footage can be assigned for each merchandise category.
  • Detailed planograms can be prepared striking a happy balance of available space, and merchandise.
  • A detailed plan can be prepared, considering detailed fixture, and component dimensions.

Benefits of Space Planning:

Adequate space planning techniques enable the retailer to have end-to-end control of merchandise. This display will attract more customers, minimizes stockouts and operating costs, enables inventory productivity, and increases the financial performance and ultimately more profits for the retail outlet. Retailers can drive top line sales, and achieve good overall returns on their invested amount of capital.


The traditional space planningprocess is altered meeting with the localized needs of customers. Retailersshould move away from developing prototype store layouts, as no two stores lookalike. They should maintain store specific plans by gaining more knowledge abouttheir stores.


Effective planning of the retail spaceand managing it in a right way is the key factor in the lifecycle ofmerchandise planning and execution. More retailers are adopting the fact that spacemanagement is an integral part of any retail business.


References:

  1. "Lifecycle Space Planning", White Paper of Oracle Retail, Images Business of Fashion, Vol: XI, No: 8, August 2010.
  2. http://retail.about.com/
  3. http://www.smallbusinessnotes.com