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Determination of space needs

Time:2012-08-28Hits:

The space for each product category is now calculated, with both selling and nonselling space considered. There are two different approaches: the model stock method and the space-productivity ratio.The model stock approach determines the floor space necessary to carry and display a proper merchandise assortment.

The model stock approach determines the floor space necessary to carry and display a proper merchandise assortment. Apparel stores and shoe stores are among those using this method. The sales-productivity ratio assigns floor space on the basis of sales or profit per foot. Highly profitable product categories get large chunks of space; marginally profitable categories get less. Food stores and bookstores are among those that use this technique. In addition the pos hardware counter should be placed where customers are convenient to go out.


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