Merchandising, a performance lever in M2

Space is a critical, limited and expensive resource with a direct impact on the stock.
In a store, the available shelf space is often difficult to change due to physical constraints, administrative standards or associated costs.

Optimized space management ensures product availability and profitability, with a final effect on the company’s performance.
In order to achieve this, the company must rely on specific talents and resources, using proven, high-performance IT solutions (merchandising and data analysis software, product image databases and their contents detailed at the very least…).

Merchandising optimization is based on quantitative analyses of sales and results (turnover, margins, panel data, etc.), on highlighting the offer and on taking into account the behavior of point-of-sale visitors (itinerary, consumption habits, traffic speed, visual behaviors and abilities, etc.).

As a general rule, low rotation shelves are located at the entrance to the store and high rotation shelves at the end of the store.
This pattern forces the consumer to pass through a maximum number of shelves before reaching the shelf where he will find the product he is looking for.
Sales per square meter is the result of various factors including the assortment, the location in the store (hot or cold areas), the atmosphere, the way the products are presented, the associated service, the ease of movement, etc.
The visibility of the product in store will depend on its exposure and the products surrounding it.

This analysis of the context will allow the calculation of sales potential per product/consumer need, the evolution of the product assortment and therefore the necessary stocks per store.
Alerts will be sent automatically to merchandisers. The use of panelist, consumer or internal data will enable the merchandising department to work, on the one hand on a national level and en masse depending on the size of the brand networks, or on the other hand locally and temporarily on atypical stores.
This will enable them to act on the attractiveness of stores, types of presentation or comparison of the performance of ranges and product families.

The relocation of a sales outlet is dictated by the need to adapt to competition and changes in consumption patterns.
The production of planograms, and therefore merchandising guides, give the rules for implementation per shelf by synthesizing the analysis of customer behavior in a department, the pricing policy and the importance of the family’s suppliers (example: category captains vs. challengers).


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