Date of this Version
Journal of Retailing
Shelf management is a difficult task in which rules of thumb rather than good theory and hard evidence tend to guide practice. Through a series of field experiments, we measured the effectiveness of two shelf management techniques: “space-to-movement,” where we customized shelf sets based on store-specific movement patterns; and “product reorganization” where we manipulated product placement to facilitate cross-category merchandising or ease of shopping. We found modest gains (4%) in sales and profits from increased customization of shelf sets and 5–6% changes due to shelf reorganization. Using the field experiment data, we modeled the impact of shelf positioning and facing allocations on sales of individual items. We found that location had a large impact on sales, whereas changes in the number of facings allocated to a brand had much less impact as long as a minimum threshold (to avoid out-of-stocks) was maintained.
Originally published in the Journal of Retailing © 1994 Elsevier
This is a pre-publication version. The final version is available at http://dx.doi.org/10.1016/0022-4359(94)90002-7
Drèze, X., Hoch, S. J., & Purk, M. E. (1994). Shelf Management and Space Elasticity. Journal of Retailing, 70 (4), 301-326. http://dx.doi.org/10.1016/0022-4359(94)90002-7
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Date Posted: 15 June 2018
This document has been peer reviewed.