In-store movement and purchasing

Date of publication: June 15, 1989

Abstract:

This work has proved very successful as it has provided retailers with a technique for assessing the functionality of their stores as selling machines. The technique has two main areas of application. Merchandising performance can be effectively assessed especially when the customer information is linked to EPoS data. Analysis of sales to traffic can identify merchandising successes and failures. The video technique can be used to assess display techniques and packaging response and yield better results than a pure analysis of sales. All the display area work can be used for Direct Product Profitability analysis by adding to the subjective areas of the technique such as space rating. The second area of application is that of store monitoring and planning. The models can highlight the difficulties that people encounter when trying to shop a store such as aisle widths, queues and staffing levels. It is now possible to empirically analyse the functionality of store design principles. For example go-track aisles are designed to allow store penetration and separate browsing and movement. However many such tracks prevent merchandise penetration via psychological barriers. The most exiting aspect of this work is the possibility of store planning scenarios. The modelling units above allow the examination of the relationships between the fundamental units of the store and how people move between them. Such data should allow the determination of optimum layouts for new stores given certain physical parameters and managerial objectives. This technique provides retailers with the chance to in- crease the service element of his offer and the efficiency of the selling unit. The competitive advantage offered by this technique can be high as the shopper will be better served by the space around him.

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