Shelf Management

Shelf Management

1. With in-store tactics the retailer attempts to extract more surplus from consumers once they are in the store.

2. retailers (and manufacturers) can boost sales by better managing existing shelf-space through store-level shelf management, what is sometimes referred to a micro-merchandising

3. A typical large supermarket carries more than 45,000 different items or stocking keeping units (sku’s) on an everyday basis.

4. Manufacturers want to maximize the sales and profits of their products, and as such always want more and better space to be allocated to their brands. Retailers want to maximize category sales and profits, regardless of brand identity; they must allocate a fixed amount of shelf space in the best possible way.

5. Only 1/3 purchases are pre-planned

   • Dagnoli 1987

6. Difficult to price compare

7. Moving toothbrushes to eye level increased sales of toothbrushes by 8% and resulted in no change in toothpaste sales (see Table 2). The profit picture was even more encouraging because toothbrushes sell at twice the gross margin of toothpaste. Overall category (brush and paste) profits increased by 6% @ < .05)

8. Retailers and manufactures believe that brand location has an important impact on sales. Eye-level often is seen as the best location. However, when pressed to be more specific about what is meant by eye-level, we found that experts were referring to any one of several shelves above the knees but below 6 112 feet. Manufactures also profess preferences for particular positions along the horizontal plane. Some believe the middle is the focal position, but others prefer the edges in order to be first or last in the planogram.

9. Vertical & Horizontal Placement

   • A central location is most desirable, on average an elevation of 5 l-53 inches off the floor (see the bottom half of Figure 3). This matches well with ergonomic research on the natural resting position of the eye. The standard rule is that the preferred viewing angle lies 15 degrees below the horizontal (Eastman Kodak Co. 1983). The average eye height for U.S. females is 59” and U.S. males 64”. If we assume that shoppers stand about four feet away Journal of Retailing Vol. 70, No. 4 1994 Eifec :t Figure 4. Refrigerated Juice: Position Effect from the shelves, this would imply average resting positions of 49” and 55”

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