Page 167 - DMGT552_VISUAL_MERCHANDISING

Visual Merchandising

Notes
Figure 8.3: Exampl of a Planogram

The allocation of space to products within a retail outlet links the designed selling environment
to the financial productivity of the retail space. Space management has to consider the long-term
objectives concerning market positioning and customer loyalty, alongside short-term objectives
concerning stockturn, sales and profits. A retail outlet that looks beautifully spacious will not
stay that way if there are not enough products selling to sustain the business, yet if the store is
full to bursting with merchandise some customers may choose not to enter the foray. Retail
space is costly and increasingly scarce and so whatever the visual merchandising strategy is, an
adequate return must be made.
The usual method for measuring retail performance is according to the amount of sales
(or profits) generated by a given amount of space.

Did u know? Sales per square metre are a commonly used method of assessing the value of
retail space, but linear and cubic measures can also be appropriate.

Space planning needs to take account of not only the amount of space allocated, but also the
quality of space.

Example: The space nearest the front of the store and the till areas are usually the most
productive.

Certain practicalities also have to be taken into consideration, such as the size and weight of the
merchandise.
Space-allocation decisions usually need to be made at various levels of merchandise classification.

Example: At departmental level, product category level and SKU (Stock Keeping Unit)
level.

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