10 Retail Shelving Strategies for an Organized and Profitable Store

Retailers must optimize their shelf space to remain competitive today. They must find room for new products and brands while showcasing customer favorites, which will help them maximize sales and profits. What principles should a retailer follow when placing items on shelves to achieve these goals? 

Product Segmentation

Products should be displayed by category. Categories a retailer might use include product type, popularity, or cost. Once products have been sorted into categories, retailers can determine where they should be placed in their stores. 

Vertical Merchandising

Retailers know that popular items should be placed at eye level on shelving for retail stores. High-margin items should also appear here. Less profitable items and those that don't sell as well should be placed on higher or lower shelves. Customers will automatically look at items at eye level first, which helps the company sell more profitable items. 

Performance

Store categories should be set based on inventory turnover, sales performance, and gross margin. Hot sellers should be allotted additional shelf space in a prime location. Low-performing categories should be moved to less prominent places and displayed with less shelf space. 

Shelf Layout

When creating a shelf layout, ensure items are placed in a manner that is visually appealing and makes it easy for customers to find what they need. Product visibility is only one consideration; accessibility and convenience are others. 

Planograms

Every shelf needs a planogram that implements the above tips. Retailers may use this planogram in all stores to ensure products appear in the same place at each location. Planograms need to be adjusted regularly to account for changing consumer needs. For optimal results, refer to sales data and customer feedback when creating planograms. Planogram software is very helpful in creating shelf layouts. 

Shelf Trays

Shelf trays organize products once they are placed on shelves. They ensure customers can find the items they desire quickly and allow similar items to be grouped together, streamlining the customer experience. 

Stock Pushers

Consumers want to find products quickly. They may become frustrated when they visit a shelf and don't see the desired item. Imagine the retailer's frustration when the item is available, but the consumer cannot see it. Stock pushers ensure items are always visible by moving products forward when an item sells. Staff members won't need to complete this task manually, and consumers will always be able to find in-stock items with little effort. 

Analytics Software

Invest in analytics software to learn more about consumer behavior and sales data. This software also ensures retailers know current inventory levels. With this information, retailers can determine which products need more shelf space and which items should be moved to increase sales. 

Computer-Assisted Ordering Systems

CAO systems help retailers determine how much of each product they need. These systems analyze sales and inventory data to determine which items are selling and which remain on the shelves. Retailers use this information to optimize shelf space in their different locations. 

Artificial Intelligence

Retailers collect large amounts of data. This data only benefits them when it can be analyzed to identify patterns and trends, so they turn to AI for help. When AI completes the analysis, retailers can determine how best to optimize shelf space. 

Retailers must optimize their shelf space to maximize sales and profit while satisfying customers. The above principles are helpful during the optimization process. They improve the consumer's shopping experience and ensure retailers make the most of their space. Retailers must continually evaluate and adjust product placements for long-term success; these tips will help them do so effortlessly.