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 remodeling of a grocery store (1.700 square meters), we analysed the situation based on Smart Store Layout. Initial hypotheses were set and recommendations for store layout calculated. 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 RESULT
The reduced shelf space resulted in a overal stock decrease of 8% and a profitability increase of 5%! Space profitability increased for 20%. In some top categories we reduced stock level to 1/3 of the former level while the sales remained the same. 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 next cycle of iteration we already tapped into new potential for higher profitability, better customer satisfaction and faster turnover.

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