英语论文网

Allocating space according to a measure of sales assumes that there a relationship between the amount of space and the rate of sales, this relationship is termed the space elasticity of a product and it refers to the extent to which the sales of a product will change in response to a changed. In the amount of space allocated to that product Research suggests that space elasticity not uniform amongst products, or across stores or departmental locations.

Using profit measures as a basis for space allocation ill prevent a business manager from allocating large amounts of best quality retail space to unprofitable products. They could mean, however, that a retailer was allocating unnecessarily large amounts of space to products that would sell as well with a smaller space. Profitable lines may not in fact sell very quickly at all, and allocating extra facings or shelves of the product may have very little impact on the sales of the product. In this case the quality of the space becomes important, so the retailer can locate high profit items in locations around the stare that arc better selling.

The relationship between the sales and generated by different products, and suggests how space and ranging decisions should be made accordingly. Allocating space according to sales, and in particular, product profitability, is working with the interests of the retailer, and not the customer in mind and therefore may suggest an illogical and presentation of products. Long term profitability depends on customer loyalty, which is dependent (among many other things) upon being satisfied with the presentation and assortment of products. Fine tuning the allocation of space within a retail outlet therefore requires extensive amounts of high quality data, together with a pragmatic and customer orientated managerial approach at store level.

Productivity and efficiency and towards are visual display improvements. Once an optimum level of efficiency is achieved, space planners can move onto the objective of making their products and fixtures more attractive than their competitors. Some of the latest planning systems are able to simulate the entire store environment, so that the product manager can view an attractive plan in virtual reality and make any adjustments they fed are necessary. Recent space optimization technology applications offer the opportunity to create specific platform.

Space Allocation and Category Management:

Although the performance of individual product lines is Important to retailers in terms of the rate of sales which influences availability and the levels of contribution to turnover and profitability, the focus of performance In many' retail organizations is at product category, rather than individual SKU level. A retailer is more interested in overall levels of sales and profits generated by their product range, rather than the sales of a single line that might be of interest to its manufacturer. The product category has emerged as a manageable classification for most aspects of product management, and certainly applies in the case of space management. In fact, many would argue that space planning and allocation and the systems that drive the process can only be properly implemented in tandem wi本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。