Space Management Retail space can be very expensive

Space Management • Retail space can be very expensive, particularly in large towns and cities. • Retailers want to maximise the use of space in order to ensure profits continue to rise. • At the same time they will want to ensure that the customer flow around the store is not impeded by overflowing displays. • Space is used differently according to the product they sell and the price they charge e. g A furniture store needs considerable space to display their products and to allow customers to move around freely.

Space Management • A local convenience store wants to provide a good service and cater to the needs of impulse buyers therefore the store may try and cram in as much stock as possible. • A good retailer will know their sector and their customers and will plan accordingly. All retailers will want customers to have a positive experience ; this means they are more likely to return to the store and recommend it to others.

Space Management It is eight times more expensive to attract a new customer as it is to retain an existing one !

Managing your space 1 Discuss the following question: Why do retailers have to think about how much space they allocate to selling products and how much space they allocate to storing their stock ?

Managing your space 2 Discuss the following question: What factors does a retailer have to consider when they are think about the space allocated to fast sellers and the space allocated to slow sellers ?

Managing your space 3 Discuss the following question: Should we hang garments on rails or fold them on shelves ?

Managing your space 4 Discuss the following question: How much space should be allocated to grocery products and how much to toiletries ?

Case Studies Halfords have improved their use of space by using visual technology systems to ensure effective delivery of planograms http: //www. avtretail. com/case_study_halfords. asp