Retail Shelf Space: Linear, Shelf Levels and Product Placement

Summary

This document explains how retail shelf space is managed, starting with the concept of the linear and its related measures such as linear to the ground, developed linear and facing. It then describes the four shelf levels, from ground to above eye height, and how each suits different product types. It also covers how changing a product's level affects sales and lists the main factors to consider when allocating shelf space.

Key points

The linear is the total display space for products, including shelving, counters, gondolas and exhibitors.
Developed linear equals linear to the ground multiplied by the number of levels.
Facing is the length a product unit occupies on the shelf, typically 20 to 30 cm.
Level I (ground) suits first-price and staple products; Level II (hand height, 80-120 cm) suits secondary and retailer brands; Level III (eye height, 130-180 cm) suits top brands; Level IV (above 180 cm) suits stock and advertising.
Moving products from eye level to hand level is said to reduce sales by 30%, and moving them to ground level to reduce sales to 12%.
Key allocation factors include linear size, number of levels, product dimensions, spacing, facing and rotation.

Test yourself

Understanding Retail Shelf Space

Effective shelf space management is crucial for optimizing product visibility and sales. Here's a breakdown of key concepts:

1. What is the Linear?

The linear refers to the total space where products are displayed to meet customer needs. It includes shelving, counters, gondolas, and exhibitors. The main feature is that it presents products on shelves, with all references provided by the establishment. The linear must be easily accessible to customers.

2. Key Linear Definitions

Linear to the Ground: The longitudinal extent of the furniture displaying products, measured on the floor.
Linear Developed: The total longitudinal space available for displaying items, calculated as linear ground space multiplied by the number of levels.
Facing: The length occupied by each product unit on the shelf, typically between 20 and 30 centimeters.

3. Shelf Levels and Product Placement

Shelf levels significantly impact product visibility and sales:

Level I (Soil): Located at ground level, this area is less accessible, requiring customers to bend. It's often used for first-price brands, cheaper products, and staples.
Level II (Handheld): Situated about 1 meter above the ground (80-120 cm), this level is easily accessible and suitable for secondary brands, retailer brands, and products on offer.
Level III (Eyes): Located between 130 and 180 cm above the ground, this level is ideal for top brands, high-visibility products, and those with higher value.
Level IV (Hat): Positioned above 180 cm, this level has limited accessibility but high perception. It's used for stock accumulation, in-store advertising, and products intended to attract attention.

4. Impact of Product Level Changes

Lowering products from eye level to hand level increases the average space height to 70 cm (50-120 cm), decreasing total sales by 30%. Moving products from hand level to ground level reduces the average space to 50 cm, with sales decreasing to 12%. If products are moved directly from eye level to ground level, the average space remains at 50 cm, and sales also decrease to 12%.

5. Factors in Shelf Space Allocation

Key factors to consider when allocating shelf space include:

Linear Size: Length, depth (width), and height of the shelving.
Levels: Number of spaces from the first to the last shelf.
Product Dimensions: Area and height occupied by each product.
Spacing: Need to place multiple units of each product.
Facing: Length occupied by each product on the shelf.
Rotation: How quickly products sell.

FAQ

What is the linear in retail shelf space management?

The linear is the total space where products are displayed to meet customer needs, including shelving, counters, gondolas and exhibitors. It presents products on shelves with all references provided by the establishment, and it must be easily accessible to customers.

Which products are best placed at eye level?

According to the text, Level III (eye level, 130 to 180 cm above the ground) is ideal for top brands, high-visibility products and higher-value products.

What is facing in shelf space allocation?

Facing is the length occupied by each product unit on the shelf, typically between 20 and 30 centimeters.