CASE #1 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  profitability increased of 5%! Space profitability increased by 20%. In some top categories, we reduced the stock level to 1/3 of the former level without any negative impact on overall sales. The space freed has been leveraged for growing, high-margin categories. 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 the midst of the first corona wave, another supermarket was remodelled according to the model. Despite all the outside turbulences,  the “Case #2” gave even better results than the first one. Now, with half year of results behind us, we have a very solid case in hands. If interested, send us an email note and we’ll send you a free 2-page document with “Case #2” description.

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

Workshop environment helps us leverage your team capabilities, powerful analytics and knowledge from the past projects.
Together, it blends in a unique product that leads to the space optimization and innovation model fitting your own retail strategy!