Optimizing Retail Shelf Space: Linear, Levels, and Product Placement

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.