Streamlining space management: how Henderson's transformed store layout decisions with StoreSpace^®

StoreSpace^® has helped Henderson’s macro space planning team to analyse its store layouts and identify categories with too much space and reassigning those bays to under-spaced areas, all while maintaining the store profile clustering strategy. By adjusting the category space allocation and then analysing the results, Henderson’s has been able to understand what actions have improved sales and profitability – ultimately answering the question; “Is this planogram and/or category working hard enough for the space it has been given?”

Henderson’s originally approached StoreSpace Insights following a recommendation from NielsenIQ, because of the Spaceman planogram integration with StoreSpace^®. The integration enables the analysis of sales, profit and movement by category and planogram, using the AutoCAD .dwg floor plan to give insight into location in store and associated category adjacencies.

Lead image – Henderson-group

Within 13 weeks StoreSpace^® was providing Henderson’s with performance insights to inform category space changes which could then be tested and demonstrated based on robust analysis. To date 101 of Henderson’s 105 stores are now entirely managed within StoreSpace^® using the data to inform decisions on upcoming projects. Implementing StoreSpace^® for the 400 plus independent stores will be the next step of the roll-out in the years ahead.

“StoreSpace^® has also prompted the macro team to re-evaluate both the highest and lowest value categories with positive outcomes. The team has been able to identify opportunities to reallocate space from ambient to fresh and meet a business priority.”

Terence O’Hagan Henderson’s Retail Category Development Manager

Image – Henderson-group

Collaboration was key to the swift and successful implementation process which started with an in-depth discovery. Lead by StoreSpace Insights and involving the Proposition and Store Development teams, analysis of the business process identified the use of multiple versions of the store plan and duplicate handling of information.

As a result of using StoreSpace^®, Henderson’s has been able to turn the AutoCAD floor plan into a living document managed by multiple groups across the design and merchandising process. The store plan is now a reliable and accurate single version of the truth on which decisions can be made with confidence.

This transition was not without challenges, but the collaborative partnership developed between Henderson’s and StoreSpace Insights’ Head of Client Services, Richard Burford, making the process straightforward. In order to create the single version of the truth, the Store Development team had to pass responsibility for initiating the floor plan and managing the block library to the Proposition team. Handing over this responsibility was facilitated by an understanding of the value and a trust in the process that was being developed.

“Decisions are now based on accurate floor plans with the architectural design team, macro space planning, retail services and our project managers all using the same information to make decisions.”

Terence O’Hagan

Image – Henderson-group

The StoreSpace^® integration with Nielsen has further optimised Henderson’s replenishment process. StoreSpace^® manages the planogram to store relationship, while Spaceman drives the Automated Stock Replenishment system.

This means that if a planogram is not placed on a StoreSpace^® floor plan, the products won’t be delivered to store. This means that every product has an allocated place in store, so stock replenishment is optimised too.

StoreSpace Insights’ Head of Client Services Richard Burford lead the implementation process and ensured all stakeholders were involved in exploring potential impacts and addressing them. Richard then trained the team, making sure it was tailored to the individual users, their roles and how they were going to use StoreSpace^®, followed by focused a two-week Hypercare to ensure users were fully up to speed.

Adoption was further supported by the monthly Customer Success meetings providing a regular opportunity to ensure Henderson’s is getting the most out of StoreSpace^®.

“StoreSpace^® is a great tool for Henderson’s and for convenience retail chains. Its value is in quicker, faster, and better decision making. It is influencing what is happening in store and we can see which categories we need to flex to optimise sales.

We are now all set up and are focused on maximising the use of StoreSpace^® across the team, while learning from StoreSpace Insights’ Customer Success on industry best practice and value. Before we started using StoreSpace^®, I would have said we didn’t have an issue with space planning, but you don’t realise there is a better way of doing things until you are presented with the opportunity.”

Terence O’Hagan