Best Practice for Optimization of Assortment & Store Layout
The client had identified an untapped potential in certain sales areas, where average sales levels did not correspond to the rest of the store.
Retail Academic’s mission was to develop a strategic framework for the client to rely on in pinpointing the most effective assortment in each strategic sales area. In addition, our mission included developing best practice of where and how the assortment should be presented in terms of store layout, inspiration, product exposures and communication.
By categorizing the assortment and ranking each category on specific factors such as level of penetration, frequency, price level etc., we could analyse the assortment and shopping behaviour in-store to define prioritized hypotheses.
With hypotheses in hand, we conducted in-store tests to identify which characteristics of assortment and presentation were the most effective in each sales area.
Among other things, the analysis consisted of:
- Sales and transaction data
- Shopper behaviour in sales area
- Shopper flow
- Purchasing process through eye-tracking
- Shopper attitudes
- Attitudes towards brand
- Attitudes towards assortment
- Overall shopping experience
A framework for picking the most effective assortment, which significantly increases sales and margin in each tested sales area.
A best practice of store layout, how to increase inspiration as well as where and how the assortment should be presented to drive sales and improve shoppers’ in-store experience.
A framework for in-store communication, which improves shoppers’ attitude toward brand, perception of relevance, and level of price and quality.
The frameworks and best practices were implemented in the client’s organisation. Not least, the sales and marketing department was instructed on how to collaborate with the purchasing department through the framework in order to put emphasis on effective assortment in each sales area.