CASE STUDY

INITIAL SITUATION
In 2019 our retail partner wanted to stop the slight but lasting downfall of the grocery store in a highly competitive environment of one of the major Slovenian cities.

IMPLEMENTATION
For the remodeling of a grocery store (1.700 square meters), we analyzed the situation based on Smart Store Layout model & methodology. Together with the partner’s project team, we set bold initial hypotheses which served as an input to Smart Store Layout model algorithm. On the basis of Smart Store Layout recommendations, a new store layout was prepared. Shelf space decreased, clear shopping paths have been established, easier store navigation introduced & the categories laid out in a thoroughly different way.

THE RESULT
One year and one corona later we can firmly claim that most of the model suggestions were correct. Over-stocked & slow-moving categories have been very effectively substituted with growing and more impulse-purchase based categories.

The reduced shelf space resulted in an overall stock decrease of 8% and a profitability increase of 5%! Space profitability increased by 20%. In some top categories, we reduced the stock level to 1/3 of the former level. The model is also very useful for targeting particular destination categories: healthy and organic products increased by more than 25% (above comparable stores).

THE PROJECTION
Through the next cycle of iteration, we already tapped into the new potential for higher profitability, better customer satisfaction, and even faster stock turnover.

In-built scenarios help get initial space recommendations quickly. Later, we can adjust and fine-tune “volumes” of parameters for specific situation.