TEN TOP TIPS for Increasing Your Sales Through Effective Stock Placement
By: Loran Able
www.retailresults.com.au 

Also by Loran Able: BRANDING – A TOTAL EXPERIENCE


With the cost of retail rent always on the increase and being one of the largest expenses for running a business it makes sense that we should ensure that every square metre of space is earning a healthy return. 

As retailers our prime objectives are usually more sales and more profit and many people measure this just by the overall results of the store. One very powerful way to increase more sales and profit is to have in place an open-to-buy plan and stock management system by categories and departments followed by the most effective positioning and space allocation for each category, department and product line. The location and space allocation for these products play an important role in the pursuit of merchandising success with the result being increased sales and profits.

Review our Ten Top Tips for Increasing Your Sales Through Effective Stock Placement experiment with these tips and measure every change you make to see what works for your store.


TEN TOP TIPS for Increasing Your Sales Through Effective Stock Placement

1. Identify your high volume basic items and merchandise them in bulk.

E.g. milk is always merchandised in volume by size and brand and basic new season’s well priced t-shirts are merchandised in size, colour and style with a price point. Make them easy to see and grab the attention of the shoppers. These basic items make great add-on sales to increase your average sale.

The guiding principle here is: the more a product sells the more space it should be given. 

2. Give the appropriate amount of shelf space and position to each product.

E.g. when merchandising home brand sheets and associated products more space would be allocated to those than the fashion lines. The fashion lines would have the most prominent position in the shop like the windows and the front of the shop as these create the new interest and the excitement to the store. The home brand sheets would be positioned further to the back of the store to draw potential customers through the store, exactly like the milk in the supermarket.

3. Know where your ‘hot spots’ are in your store and merchandise with product you want to showcase.

‘Hot spots’ are those areas in you store that are very visible to customers and have the greatest volume of traffic.

E.g At the front or back end of entrance facing gondolas, the area for impulse buys at the counter and the area a metre or so inside of your store on the opposite side to the counter.

The hot spots can be used for new, advertised, high margin and high volume products.


4. Influence your customer flow to the back of your store or up a level by the placement of high demand/destination items or services in those areas.

Find a balance between maximizing sales of high demand products throughout the store, generating flow around the slower selling products and providing logic and convenience in the layout for the customer. This approach will increase your space productivity. 

5. Merchandise slow moving items next to volume sellers.

Sales for slow moving lines can be increased if merchandised next to associated volume products. E.g. Your basic volume turtle neck sweater in 3 colours could be merchandised between the 2 colours of leather coats and the leather coats have scarves hung inside the neck of the jackets. Suggestive selling without words!

6. Merchandise non-sale items next to sale items.

Sales for full priced items can be increased if merchandised next to associated on sale products. E.g. you may have an aromatherapy burner on sale and you merchandise the full priced oils next to them. 

7. Merchandise associated lines next to each other.

E.g. Pen refills next to the pens, cards next to the wrapping paper, light bubs near the lamp bases and shades, pet vitamins next to pet food, bubble bath next to the head rest pillow and back scrubber. 

8. Eliminate space wasters from your range

If you have stock that has a very slow rate of sale it is more than likely that you are wasting valuable space that could be generating you more cash. There is no point holding stock lines because someone might want it one day. Reduce it and make way for more profitable and fast moving products. If someone does want it one day order it in.

9. Seasonal products need to be allocated more prominent space at their peak selling periods.

We have all seen the umbrellas being moved to the front of the stores on rainy days. Retailers do it because it works, they sell more umbrellas. It’s the same for heaters in winter, air-conditioners in summer, scooters when the craze hit and lingerie when it’s Valentine’s Day. 

10. Test and measure every time a product is given more or less space, every time a product is moved and every time product is showcased in the window.

Testimonials:

This way you will know what works and what doesn’t. Keep doing what works until it doesn’t any more. Reap the benefits of your hard work and focus in the form of sales, profit and satisfaction.

“Thanks to Retail Results, I have learned how to successfully juggle working ‘on my business’ with working ‘in it’. 

I now know my own company better: its figures, sales & marketing potential, its strengths & weaknesses. With their professional and nurturing advice, Loran Able and her team have allowed me to achieve results in project completion and business growth of which I can be proud. 

Month by month my shop’s profile, customer-base, sales and margins have increased to the point that I can now begin to enjoy the ‘fruits of my labour’ and have stopped asking myself why I went into small business in the first place. 

Just like a caring gym personal-trainer who knows how to push you to maximum gain, Retail Results has been instrumental in making me change mere thoughts into action, allowing me to attain growth and management goals far beyond what I possibly could have achieve working alone.”

Scott Whitmont
Director
Lindfield Bookshop

“Loran has been working with me to lift my florist business to the next level, to turn us into real retailers. Loran is focused and has a structured approach to her mentoring role which ensures that each week we are working to clear objectives. 

And best of all she shows that she really cares about me and my business, providing lots of extra tips from her broad experience in the retail sector and as an expert shopper. I would highly recommend Loran. She's great!”

Ivan Kinsella – Director – Buds & Bowers 

Read more about: Loran Able

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