Journal ArticleDOI
A Model for Optimizing Retail Space Allocations
Marcel Corstjens,Peter Doyle +1 more
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TLDR
In this article, a case study is used to estimate the parameters and the problem is solved within a geometrical programming framework, and an extensive comparison with alternative procedures suggests this general model leads to significantly different allocation rules and superior profit performance.Abstract:
The allocation of scarce shelf space among competing products is a central problem in retailing. Space allocation affects store profitability through both the demand function, where both main and cross space elasticities have to be considered, and through the cost function procurement, carrying and out-of-stock costs. A model is developed which uniquely incorporates both effects. A case study is used to estimate the parameters and the problem is solved within a geometrical programming framework. An extensive comparison with alternative procedures suggests this general model leads to significantly different allocation rules and superior profit performance.read more
Citations
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Journal ArticleDOI
Customer Experience Management in Retailing: An Organizing Framework
TL;DR: In this article, the role of macro factors in the retail environment and how they can shape customer experiences and behaviors are identified which should result in higher customer satisfaction, more frequent shopping visits, larger wallet shares, and higher profits.
Journal ArticleDOI
Shelf management and space elasticity
TL;DR: It is found that location had a large impact on sales, whereas changes in the number of facings allocated to a brand had much less impact as long as a minimum threshold (to avoid out-of-stocks) was maintained.
Book ChapterDOI
Assortment Planning: Review of Literature and Industry Practice
TL;DR: In this article, the goal of assortment planning is to specify an assortment that maximizes sales or gross margin subject to various constraints, such as a limited budget for purchase of products, limited shelf space for displaying products, and a variety of miscellaneous constraints such as desire to have at least two vendors for each type of product.
Journal ArticleDOI
Dynamic Assortment Optimization with a Multinomial Logit Choice Model and Capacity Constraint
TL;DR: This work develops an adaptive policy that learns the unknown parameters from past data and at the same time optimizes the profit and develops a simple algorithm for computing a profit-maximizing assortment based on the geometry of lines in the plane.
Journal ArticleDOI
Demand Estimation and Assortment Optimization Under Substitution: Methodology and Application
A. Gürhan Kök,Marshall L. Fisher +1 more
TL;DR: An algorithmic process to help retailers compute the best assortment for each store and establishes new structural properties that relate the products included in the assortment and their inventory levels to product characteristics such as gross margin, case-pack sizes, and demand variability.
References
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Journal ArticleDOI
The Relationship between Shelf Space and Unit Sales in Supermarkets
TL;DR: In this article, the impact of shelf space changes on unit sales was studied and space elasticity was hypothesized to be a function of several product-specific variables, including physical properties, merchandising c...
Book
The relationship between shelf space and unit sales in supermarkets : a model proposed and tested
TL;DR: In this article, the impact of shelf space changes on unit sales was investigated using stepwise multiple regression, and it was found that the impact on shelf space was very small relative to the effects of other variables.
Journal ArticleDOI
Product selection and space allocation in supermarkets
Pierre Hansen,Hans Heinsbroek +1 more
TL;DR: A model and an algorithm are proposed for the simultaneous optimal selection among a given set of products of the assortment of products to be sold in a supermarket and the allocation of shelf space to these products.
Journal ArticleDOI
Increase in Sales Due to In-Store Display:
TL;DR: In this paper, a factorial experiment measures the impact of in-store displays on sales for different product characteristics, including growth or competitive structure, and the number of customers who purchased a product.
Journal ArticleDOI
The Effect of Shelf Space Upon Sales of Branded Products
TL;DR: In this paper, the influence of shelf space upon sales of branded products is tested in a randomized block field experiment, where sales of two brands of salt and powdered coffee cream are measured. Managerial implicat...