Macro Space Optimization


Macro space optimization ensures category optimization and departmental space are allocated appropriately in-store to enable retailers to achieve maximum return on investment.

Overview

How can Macro Space planning help my business?

Store expansion initiatives are becoming increasingly more restrictive for retailers today due to planning regulations and the sheer cost associated to such growth strategies. Space allocation at the department, category or sub-category level can be both time consuming and expensive. Yet so often we find that macro space planning and optimization is the key to a successful store layout to enhance the customer experience. It is vital to make the most of existing store space by ensuring that the store design, space planning and merchandising are intertwined and in-line with store specific consumer demand for a truly consumer-centric approach.

Macro space optimization ensures category and departmental space are allocated appropriately in-store to enable retailers to achieve maximum return on investment. Today, many retailers are using computer aided design (CAD) systems or manual spread-sheets to attempt macro space optimization. These methods provide a top-down view of the store which retailers frequently use to allocate space however, fail to account for more localized demand, resulting in a stores failure to meet its full potential and lost sales opportunities.

Taking a bottom-up approach enables efficient analysis of product/category performance data such as historical sales and forecast data for true space optimization on a store by store basis. Space can be analyzed in-line with business objectives i.e. new stores, store refits, seasonal adjustments etc. with space recommendations which reflect localized demand and remain in-line with physical space availability within each individual store. The net result see’s categories recognizing their true potential with maximum profitability and a shopper experience tailored to breed consumer loyalty.

 

  • Brings together the disciplines of micro level product inventory requirements at the shelf level.
  • Integrates with leading macro space management solutions.
  • Provides the ability to select different forecast methods including elasticity and inventory demand.
  • Gives immediate visibility in monetary value of the financial impact associated to in-store space alteration.


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Solution

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Intelligent Store Optimization - ISO

Quick seamless optimization and management of store specific space

The optimization of category space within stores has historically been done by format management leading to deficient judgement of how much space a particular department should be allocated. This approach inevitably leads to poor decisions which in turn mean the categories within these departments in store may fall short of their potential.

Intelligent Store Optimization is a macro space driven solution which provides sophisticated modelling and analysis of the retailer’s chain and every product within it to determine the optimal configuration of space for each product category in each store. This modelling is facilitated using sophisticated forecasting algorithms and a branched combinatorial optimization algorithm to determine the optimal configuration of those forecasts in terms of department and category space in store.

Intelligent Store Optimization allows for the optimization of category space for each store. Recommendations can be driven at several different levels including total store, department, aisle and valley. This approach not only allows the exercise to be repeated it allows for automated optimization at strategic times of the year.

  • Brings together the disciplines of micro level product inventory requirements at the shelf level.
  • Integrates with leading macro space management solutions.
  • Provides the ability to select different forecast methods including elasticity and inventory demand.
  • Gives immediate visibility in monetary value of the financial impact associated to in-store space alteration.

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Features

  • Ease of use

    Macro Space ease of use

    ISO utilizes sophisticated statistical analytics without requiring a mathematician to operate. The solution’s visual user interface utilises simple drag & drop functionality allowing users to easily select the business objective along with the stores and categories for review. In addition, ISO remains completely transparent by enabling users to gain a full understanding of how each space recommendation has been generated.

  • Forecasting

    Multiple forecasting methods

    Multiple forecasting methods enable the solution to adapt to the needs of each individual category in order effectively predict the return space within each individual store. The net result provides fully space aware, demand driven space forecasts on a store-by-store basis to ensure maximum return on investment.

  • Opportunity analysis

    Opportunity analysis

    ISO enables users to immediately identify and capitalise on key opportunities to drive sales profitability (cut stockholding, boost margin and drive-up profits) as well as freeing up under used space for reallocation to more effective use such as a new offers, banner boards, concessions etc.

  • Rapid & flexible

    Rapid & flexible macro space solution

    Macro Space Optimization takes place inline with business objectives by enabling users to easily optimize store space at any level i.e. entire store, department, zone, aisle etc. Optimal space configurations which reflect consumer demand and maintain respect to business logic are rapidly created in order to enable macro space analysis to become a more frequent element within the category review process.

  • Space models

    Space models

    Users can rapidly create space recommendations at multiple levels i.e. generic, cluster, store-specific in order to generate optimal return on investment for store refits and new stores by utilising a variety of performance metrics including historical and/or projected performance.

  • What-if analysis

    What-if analysis

    ISO enables an immediate understanding of the financial impact associated to any recommended in-store change. Users can create a variety of what-if scenarios in-line with objectives such as the introduction of a new store initiative, seasonal macro space optimization etc. in order to quickly compare and assess the impact of change.

Flexible Deployment

We have a range of deployment options suitable for every type of business. For Intelligent Store Optimization, we can distribute the software to the following options:

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Get in touch

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UK: +44 (0)800 121 4492
USA: +1 (866) 397 0546


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Galleria is the leading supplier of software and services for planning, automation and optimization solutions to both the retailer and supplier community.
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