Location Location Location

by admin on July 1, 2011

In-store real estate is a hot contest if you want to maximise your sales.

The right product in the right place at the right time is the key to great sales.

It sounds simple. But so many retailers get it so wrong.

Here is a quick guide to the logic of in-store real estate, to help you make the most of all your assets.

First, assess every piece of your merchandise and break it into the following categories:

  • Promotional. This is merchandise that is currently advertised or that you have targeted with an offer of some sort.
  • Fashion. Seasonal merchandise that has an expiration date.
  • Bread and Butter – or Basic – stock. These are the lines that will never have a huge sales spike but constantly tick over.
  • Impulse lines. As the name suggests, these products are no-brainers. They are usually at a price the customer finds most affordable,  and the products are not what we would term a ‘considered purchase’.

Now, walk your store’s real estate and break it down into zones, using the same principles as above. Remember, the positions that are most visible within the store are worth the most value, and should be used to display merchandise that will generate your highest return on investment.

As a rule, the hierarchy of product placement is the same order as the list above.

Promotional lines get the best spots. We often refer to these positions as ‘hot spots’ and they are usually located at the front of the store or department, in the most prominent position.

The positioning of ‘fashion’ product is a close second to the promotional lines. As there is limited time to clear this product, it should be on the shelf at eye level or on the rack closest to the aisle.

The bread and butter lines are the core of your business. They are what the customer comes in expecting to find. It could be a basic cargo pants or pair of black socks. Many stores place these products at the back of the store, using them to draw customers past the promotional and fashion lines, maximising their sales opportunity.  Often, your basic lines are your best sellers, so locate them in the prime position within their classification. Even if they are not best sellers, they are significant to your overall profit result. They are products in demand, so they should never be hidden in the back corner.

You will often find ‘impulse’ lines positioned at the counter, but they can be found anywhere that is easily accessible and with high traffic, such as at an entrance, or a major traffic aisle, or with a related item. Remember, there is little point in positioning impulse items past where the transaction is to be finalised. Impulse items can just as easily be ignored if there is any obstacle to the customer making the purchase.

Every area on your store has a value, as does each piece of merchandise. Just with the housing market, some suburbs are more valuable than others. Your challenge is to figure out the value of each position in your store and match it to the merchandise that belongs there.

Good Luck!


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{ 1 comment… read it below or add one }

Tanya July 16, 2011 at 4:41 am

Thanks Nicolas we are just about to move office talk about location location location hence the move but we are looking at how we will set up our new showroom this has really helped us look at things differently.


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