Top tips for boosting your retail space planning maturity

Effective retail space planning has a significant effect on store performance. Not only does it give a store a competitive edge, but it can lead to improved customer experience and boosted profitability too.

Retailers across the world have differing degrees of sophistication in their retail space planning processes. Typically, as a retailer grows, initial manual processes get increasingly automated and data becomes more and more important.

Earlier this year, we shared our retail space planning maturity model (and a fun quiz to go with it!) to help retailers determine the sophistication of their space planning process – and ultimately identify ways to improve.

A few months on, we’re sharing our top tips for retailers looking to enhance their processes and move further up in the retail space planning maturity model!

Level one involves the very basics of micro and macro space planning.

The planning process is manual, using tools like Excel or marked-up AutoCAD plans. This is largely ineffective and inefficient.

To transition from level one to level two, we recommend that retailers standardise their approach – especially as their estate grows.

Retailers should use a centralised and controlled method for micro and macro space planning by implementing technology like our StoreSpace® software.

Planning teams will then be able to access data, such as which categories are generating the most revenue. This can be used to inform planning decisions, resulting in a more efficient and effective planning process and ultimately boosted sales.

Two-way communication between stores and head office – specifically about successful in-store adaptations – should be prioritised so lessons can be learned for future improvements.

At level two, retailers may use software solutions – such as our StoreSpace® software and NIQ’s Spaceman software – to evolve from manual processes.

Many retailers at level two have either store specific or estate wide layouts, both of which are inefficient and less effective than they could be.

So, to migrate to level three, retailers should focus on moving away from a ‘one size fits all’ approach.

We also recommend retailers expand on their macro and micro space planning by evolving their store layouts in favour of a model store approach.

Plus, planning teams should make even more use of their space planning technology. They should further analyse data to compare store performance, identify areas for improvement and inform future plans.

Making two-communication even more important is essential. Any discrepancies in-store must be communicated to head office to ensure plans and layouts are accurate for better informed decision-making and better compliance.

At level three, retailers have a somewhat sophisticated retail planning process. They use technology to simplify and optimise their processes and have access to accurate data which drives their planning decisions.

By using StoreSpace® software and a model store approach, they know what ‘good’ looks like when planning future stores.

To even further develop the retail space planning process to full maturity, we suggest retailers integrate their micro and macro space planning process.

This involves linking macro space data (floor plans) with micro space data (planograms) which can be done within StoreSpace® software. StoreSpace® has the functionality to integrate technology like NIQ’s Spaceman planogram software.

By integrating micro and macro space planning, retailers will have an optimised process which saves time, improves accuracy and ultimately delivers higher store performance.

Level four retailers use integrated micro and macro retail space planning technology to save time and create better plans.

This fully optimised process means level four retailers can use planograms to directly outline category space on AutoCAD floor plans, using accurate data which is continually reviewed and updated to make informed decisions.

Two-way communication between stores and head office is optimised through digital access to floor plans and planograms for in-store compliance, as well as the ability to feedback if necessary.

However, even for retailers at level four on the retail space planning maturity model, there is always room for improvement!

Our StoreSpace® software can help planners identify underperforming stores and make changes to boost profitability across a whole estate.

Also, our experienced team are always on hand with expert advice and support to help retail space planners make their space work even harder for them.

Can we help you boost efficiency and profitability?

We work with retailers across a variety of sectors, including Shell, Praktiker in Hungary, Sainsbury’s, Primark, M&S, Apotek Hjartat in Sweden and Mexican-based Grupo Merza, helping to boost their store efficiency and profitability.

Get in touch today to find out more.