Estimation of Product Category Sales Responsiveness to Allocated Shelf Space

A retail chain manager must draw on experience based on data available from his points of sale to diagnose space misallocations in stores and to make recommendations. This paper presents an empirical estimate of shelf space elasticities from a variety store chain database at product category level with a share of space vs. share of sales econometric model. It suggests that external influences could explain space elasticity differences. Results show that space elasticities increase with the impulse buying rate of the product category and do not depend on the type of store.

[1]  J. Kotzan,et al.  Responsiveness of Drug Store Sales to Shelf Space Allocations , 1969 .

[2]  Roy Thurik.  Les grandes surfaces en France: étude de la relation ventes/surface du magasin , 1988 .

[3]  Estimation de la relation surface-ventes pour la vente par catalogue , 1991 .

[4]  Evan E. Anderson,et al.  A Mathematical Model for Simultaneously Determining the Optimal Brand-Collection and Display-Area Allocation , 1974, Oper. Res..

[5]  K. Cox,et al.  The Effect of Shelf Space upon Sales of Branded Products , 1970 .

[6]  Peter Doyle,et al.  A Dynamic Model for Strategically Allocating Retail Space , 1983 .

[7]  Franck Leblanc-Mirador.  L'achat impulsif. Doctrine et réalité , 1989 .

[8]  Paul Farris,et al.  A sensitivity analysis of retailer shelf management models , 1995 .

[9]  Pierre Hansen,et al.  Product selection and space allocation in supermarkets , 1979 .

[10]  P. Farris,et al.  A Model for Determining Retail Product Category Assortment and Shelf Space Allocation , 1994 .

[11]  Ronald C. Curhan.  Shelf Space Allocation and Profit Maximization in Mass Retailing , 1973 .

[12]  H. Phillips,et al.  How Customers Actually Shop: Customer Interaction with the Point of Sale , 1993 .

[13]  William F. Massy,et al.  Shelf Position and Space Effects on Sales , 1970 .

[14]  Stephen J. Hoch,et al.  Shelf management and space elasticity , 1994 .

[15]  P. Naert,et al.  SH.A.R.P.: Shelf Allocation for Retailers' Profit , 1988 .

[16]  M. Corstjens,et al.  A Model for Optimizing Retail Space Allocations , 1981 .

[17]  R. Betancourt,et al.  Demand Complementarities, Household Production, and Retail Assortments , 1990 .

[18]  Ronald C. Curhan.  The Relationship between Shelf Space and Unit Sales in Supermarkets , 1972 .

[19]  E. Anderson,et al.  An Analysis of Retail Display Space: Theory and Methods , 1979 .

[20]  Alain Bultez,et al.  Asymmetric cannibalism in retail assortments , 1989 .