Case Study: Avoid Stock-Outs With Space Optimization Solution

Space is a valuable and limited resource for retailers, and it must be used carefully to maximize revenue. Poor allocation of space leads to stock-outs, which decrease customer satisfaction. S-group owns and operates more than 800 grocery stores and hypermarkets (similar to the Super Wal-Marts of the U.S.) throughout Finland. The retailer understands that using every square inch of space in these 800 stores as efficiently as possible is important for optimal success.

To do so, the retailer decided to implement a space optimization solution. The retailer was using CAD floor layout plans for allocating space in each store. Planogramming, the facing of products on a shelf, was being done manually for store clusters rather than individual stores. The retailer wanted an automated process that would create store-specific planograms. This would allow the retailer to plan the optimal amount of product per shelf, refrigerator, or display based on a sales forecast.

Used with permission from Integrated Solutions for Retailers magazine.