Organizing shelf space is as crucial to retailers as having stock to sell. Without proper organization and presentation, customers may not find exactly what they’re looking for and turn to another retailer. Here’s a look at how Ivy Insights is helping to solve the ever-persistent problem of using shelf space effectively.
Optimized shelving leads to increased profits. A study by Babson Executive Education states that “there’s a science behind shelf space management and it’s fueled by data and analytics.” By understanding which products are selling, their positions on shelves and in the layout of stores, retailers can work proactively to promote further sales of their top products, while helping minimize losses on products that just aren’t selling. The Babson research goes on to explain that “shelf space management is increasingly being analyzed with respect to the financial impact of different assortments, the specific preferences of shoppers in the store area and the likely responses to pricing and promotions.” Using customer retail analytics is important in planning for sales, not fails.
Reducing OOS Items
A major pitfall many retailers face is out-of-stock (OOS) items. When a customer comes looking for merchandise that happens to be out-of-stock, they will likely take their business to a competitor. Using customer retail analytics can determine what needs to go where on shelves, and how much of it is required at a time to prevent losses due to OOS merchandise errors. Retail analytics also provide the ability to create effective replenishment plans, knowing when to reorder and how much to reorder based on demand from customers, without introducing the problem of overstocking specific items.
Customer retail analytics helps to identify seasonality of specific items. While an item may be stocked year-round, its sales may fluctuate with the seasons. Using retail analytics can establish plans for retailers to know how much of an item to stock based on these seasonal sales trends, allowing for more optimization of shelf space.
Contact us today to see how simple it is to get started using customer retail analytics to enhance your use of shelf space.