More Doesn’t Always Mean Better: Shelf Space and Retail Execution

retail executionMore sales are a good thing, and having enough supply in-store to meet demand, and encourage purchasing is important to the success and growth of a product. Unfortunately, a mistake that is made all too often is equating more product on the shelves or floor with higher profits. While more space often means more sales, retailers will almost certainly want compensation for any extra store space you want, and when the cost of extra retail shelf space is more than the jump in sales that your product receives, it’s time to think about how your shelf saturation point fits into your retail execution strategy.

Another thing to consider when purchasing retail shelf pace for your product is the impact location has on sales. In certain categories, product sales increase by over 100% when sold with multiple vertical facings as opposed to horizontal facings. In order to create the highest return on investment for your product, collect data on where your product performs best and then weigh the differences in sales between locations against the cost of the space. It may be that having only a few facings gives you the highest return on investment. To read more about how facings can influence ROI, check out our Best Practices Guide to Building Your Retail Presence.

This study by Booze&Co gives fantastic insight into how exactly profits are affected by retail real-estate costs. This Chart from the aforementioned study demonstrates well how different brands and product categories have different supply chain relationships which impact their point of optimal shelf-space.

Booze & Co

If your product is selling well, but profits are not rising at the same rate, it may be time to re-evaluate your retail space strategy and think about new ways to optimize your supply chain process. In some cases, efficiently restocking a small amount of product can be more cost-efficient than huge orders which sit on the shelf for a long time.

Best Practices Guide for Success on the Shelf

Subscribe today for more helpful blog posts!

Matthew Brogie

Mat Brogie is part of the founding team, and CEO of Repsly, the world's leading solution for high performance retail execution teams. Mat has spent the past 15 years of his career focused on bringing technology enabled business solutions to the consumer goods industry, having implemented solutions for tens of thousands of field reps at companies such as Coca-Cola, Procter & Gamble, Pepperidge Farm and hundreds of others.

Add to the conversation below


Latest Posts

4 Min Read


Beer Sales And Merchandising Tips From an Industry Expert

Melissa Sonntag

Selling beer is easier said than done - you know that. Your team works hard to brew delicious beer and build a unique brand image. Your sales reps fight tooth and nail to get your cases in as many..

2 Min Read

Supply Chain Management

The Fundamental Checklist for Choosing a Liquor Distributor

Melissa Sonntag

With hundreds of distribution companies to choose from, how can you determine which is the best fit for your emerging liquor company?  This comprehensive checklist is designed to help decision..

4 Min Read

Insights and Studies

CPG Gurus Reveal Tips for Success

Melissa Sonntag

Knowledge is power -- but only if you have the right information. If your daily headaches come from managing relationships with retailers, staying in touch with representatives in the field, or..