How can we best utilize our shelf space in His Man Friday to drive revenue?
As explained earlier, we will designate 462sq ft to product exclusive shelf space. This includes 3 sided shelves, 4 sided shelves, and tables.
- 3 sided shelves are those that are rested against the wall (creating a front side, and 2 ends). This shelving style allows us to efficiently use our wall space, but only provides us with 3 sides of product. The 2 ends are quite insufficient since they are only 1ft wide, but is available if needed.
- 4 sided shelves are those that are self-standing away from any walls (creating a front side, back side, and 2 ends). This shelving style allows us to offer 4 sides of displayed product to our customers - making extremely efficient use of available floor space.
- Tables will be placed around the store to further display our products. Tables are great because they allow you to creatively display products, but they don't allow you to store as many as shelving units do. We will focus on using tables to display featured or special products so that we can strategically display them, without the space limits that come with shelving units.
Each type will be rested on 3 ft high locked cabinet space where we will store the respective product inventory. This will allow us to restock quicker, which will ensure we always have product available and well-presented. Also, by having our product inventory stored in the front, we have more space available in the back.
462sq ft of shelf space will allow us to have:
- 12, 10ft x 1ft 3 sided shelves (360sq ft). These will rest, accordingly, against all 4 walls. They will each be 10ft long, 1 ft deep, and 6ft tall (including the lower 3ft tall locked cabinet). 1 ft deep ensures that we don't store an excessive amount of rows of product on our shelves, and since we have the locked storage cabinets below, storing respective products, we won't run out of a product on shelf.
- 6, 3ft x 3ft 4 sided shelves (54sq ft). These will be placed in strategic locations around the store where our customers can comfortably access all 4 sides. They will be 3ft wide on all 4 sides, and 6ft tall (including the lower 3ft tall locked cabinet).
- 3, 4ft x 4ft tables (48sq ft). These tables will be placed in strategic locations around the store - specifically focussing on product specials and promotional products. They will be 3ft tall since the table top will simply be resting on the 3ft tall locked cabinet.
With our average product taking up 9sq inches of space, we can comfortably conclude that we can fit 616 products on our shelves/tables at one time ({12inches/9inches}x462sq ft).
With our average product price of $8, we will be looking at having $4928 in product available on our shelves at one time. That's $10.67/sq ft of shelf space. This ratio will be extremely useful when debating more or less shelf space. It will allow us to calculate the cost or benefit, in available product dollars, of adding or removing shelves.
3 comments:
Great work on crunching out these numbers. I think the 3 methods of holding and displaying products will be good to get people moving around the store and also segmenting our products (i.e. grouping together hair products for example). 462sq ft of space seems like a sufficient amount of space to display our products.
This is just a thought, but is there any way we would be able to calculate the amount of product we can hold in the cabinets beneath the shelving units? It might give us an idea of how big the back room needs to be - or how small it can be
Good call Madeline - I'll get on that right away and let you know what we can store in the locked cabinets.
Please see "revised shelf space" post for revised version of calculations
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