Space Management Overview Exceeding customer expectations through merchandising

Space Management Overview Exceeding customer expectations through merchandising excellence

Training Objectives At the end of this session you should be able to: • Understand why Space Management is important • Identify the key responsibilities of Space Management • Describe the primary tools used by Space Management • Explain the goals of Space Management

So, exactly what “Space” are we talking about?

Space is the medium that we use to: • Display and promote our products Racks and Shelves Gondolas and Endcaps

Space is the medium that we use to: • Communicate the Best Buy brand Interactive Displays Creative Signage

The Best Buy Experience

A multitude of inputs Many departments have input on how the store should look & shop Store Strategic Marketing • Brand management Buying • Buys product Inventory • Manages inventory stock levels Visual Merchandising • Develops fixtures, graphics, interactives Planning • Implementation of prototype standards Retail Operation • Efficient processes and programs for the company Space Planning • Space allocation and evaluation Communication • Internal communication, public and community relations

So, who develops and communicates the merchandise plan for this valuable space?

Space Management Mission To provide product placement that compels our customers to purchase complete solutions.

Space Management Goals • Enhance the Best Buy brand by improving our customer’s shopping experience. • Provide Retail with easy-to-execute Maps and Planograms • Analyze category and item effectiveness to determine the optimal use of space • Provide customized maps and planograms to support market specific assortments

Key Responsibilities • Where do the categories go? • Where do the products go?

Key Responsibilities • What is the best use of the space? Hmm… Not a lot of free space here!

Space Management Organizational Structure SR. VP John Thompson Director of Space Management - Heather Elliott-Kirsch Merchandise Layout Team Planogram Team Space Planning Team

Merchandise Layout Store maps are created using Auto. CAD Each small block is an individual “section”

“Educated” Layout Each and every store needs to be designed with the following criteria in mind: • Financial Objectives – Revenues, Turns, Margins, etc. • Operational Objectives – Aisle Width, # of Registers, LP Desks, Stock Capacity, etc. • Aesthetic Objectives – Best Buy Branding, Clear Sight Lines, Fun Interactives, etc.

What is a Planogram? Planograms are created using Intercept

How to read a Planogram Signage Displays Boxstock Product Listing Fixture Placement

Space Planning Mission: Providing Best Buy with Space Allocation and Evaluation Recommendations which Enable the most Effective use of Retail Space. • Square Foot Analysis (Store, Dept, Class, Subclass) • Store Capacity and Cubic Space • Store Overstock and Closeout Analysis • Adjacency Recommendations • Marginal Return on Space Analysis • Ad Hoc Retail Space Related Investigations

Space Planning All the “Right” stuff Space Allocation The Right Space Positioning The Right Place Adjacency & Attachment The Right Neighbors

Positioning The Right Place

Adjacency The Right Neighbors

Q&A