Space Management

OverviewExceeding customer

expectations through

merchandising excellence

Training Objectives

• Understand why Space Management is important• Identify the key responsibilities of Space Management• Describe the primary tools used by Space Management• Explain the goals of Space Management

At the end of this session you should be able to:

So, exactly what “Space” are we talking about?

Space is the medium that we use to:

• Display and promote our products

Racks and Shelves

Gondolas and Endcaps

Space is the medium that we use to:

• Communicate the Best Buy brand

Interactive Displays

Creative Signage

The Best Buy Experience

A multitude of inputsMany departments have input on how the

store should look & shop

Strategic Marketing•Brand management

Buying•Buys product

Inventory•Manages inventory stock levels

Store Planning

•Implementation of prototype

standards

Communication•Internal communication, public and community relations

Visual Merchandising•Develops fixtures, graphics, interactives

Retail Operation

•Efficient processes and

programs for the company

Space Planning

•Space allocation and evaluation

So, who develops and communicates the

merchandise plan for this valuable space?

Space Management

MissionTo provide product placement that

compels our customers to purchase complete solutions.

Space Management Goals

• Enhance the Best Buy brand by improving our customer’s shopping experience.

• Provide Retail with easy-to-execute Maps and Planograms

• Analyze category and item effectiveness to determine the optimal use of space

• Provide customized maps and planograms to support market specific assortments

Key Responsibilities

• Where do the categories go?

• Where do the products go?

Key Responsibilities• What is the best use of the space?

Hmm… Not a lot of free space here!

Space ManagementOrganizational Structure

Director of Space Management - Heather

Elliott-Kirsch

Merchandise Layout Team

Planogram Team

Space Planning Team

SR. VP John

Thompson

Merchandise Layout

Each small block is an individual “section”

Store maps are created using AutoCAD

“Educated” Layout

• Financial Objectives– Revenues, Turns, Margins, etc.

• Operational Objectives– Aisle Width, # of Registers, LP Desks, Stock Capacity, etc.

• Aesthetic Objectives– Best Buy Branding, Clear Sight Lines, Fun Interactives, etc.

Each and every store needs to be designed with the following criteria in mind:

What is a Planogram?Planograms are created using Intercept

How to read a Planogram

Displays

Boxstock

Product ListingFixture Placement

Signage

Space Planning

• Square Foot Analysis (Store, Dept, Class, Subclass)

• Store Capacity and Cubic Space

• Store Overstock and Closeout Analysis

• Adjacency Recommendations

• Marginal Return on Space Analysis

• Ad Hoc Retail Space Related Investigations

Mission:

Providing Best Buy with Space Allocation and Evaluation Recommendations which Enable the most Effective use of Retail Space.

Space PlanningAll the “Right” stuff

Space Allocation

Positioning

Adjacency & Attachment

The Right Place

The Right Neighbors

The Right Space

PositioningThe Right Place

AdjacencyThe Right Neighbors

Q & A