Calculate shelf productivity

2019-05-20 Business No comment

Knowing how much profit each store produces in a store is important to any retail store, as is the placement of products in the store. Understand the productivity of a single shelf and not only help you under certain conditions from

increase profitfrom

Can also help you improve from

Product choice with from

Place In your store. The idea is that you want to get as much profit as possible from every shelf in the store. I mean the shelf space in the broadest sense.

Step 1: Determine a unit of measure

The first thing you need to do is to decide on a unit of measure. Be aware that in order to compare a particular space to another specific space, they need to be the same unit of measure. E.g. If you use 1 foot of shelf space, you need to apply it to every part of the store you want to calculate. The more well-known "Apple and Apple" is the key to achieving this goal.

Step 2: Track your shelf number

Once you have determined the unit of measure that is right for you, number your shelf space [at least on paper] so that you can identify specific locations and shelves. I recommend using a store map and various spreadsheets. Also be aware that the larger the individual units of measurement, the less accurate your profitability will be. Therefore, using smaller units of measure may be more valuable. E.g. Use 1 foot instead of 2 feet.

Step 3: Distribute the product

Of course, it has taken some time for the product to show up, and you have already assigned the product to a specific location in the store. Therefore, connecting the product to the shelf location number is a simple matter.

Step 4: Calculate the dollar value profit of each item

While knowing the percentage of profit may help, the true measure of productivity is from

Actual dollar earnedfrom

. So figure out the gross profit of a from

Special project [Revenue – Cost of sales = gross profit].

Step 5: Calculate dollar value productivity using dollar value

Simply multiply from

The number of units sold, a specific product, with from

Dollar value gross profit. The most important part of comparison is that you need to measure it. from

Over time. Therefore, please use 1 week, 1 month, 6 months or any other time you wish to use. Applying it to every shelf in the store quickly identifies the highest-producing shelf and, on the contrary, identifies the lowest-volume shelf. Connect it to the season and you will see what happens soon.

Step 6: Spend time, analysis and experimentationfrom


Through the analysis of this nature, the amount of information that can be collected about store productivity is enormous and incalculable. Especially with time, however, be aware that this type of analysis takes time, especially in environments where there may be several cycles. Therefore, make sure that the time you use to calculate productivity matches your store and product type. Of course, based on this data, you can calculate the exact season for a particular line.

Finally analyzed your from

Store productivity It will allow you to do better in retail and ensure increased profits. The only thing to remember is that you should always do this and wait patiently. Building a useful statistical database takes time and some effort.

I wish you all the best and invite you to share your stories and comments here.


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