The relationship between shelf space and sales is usually measured in terms of the shelf space elasticity, that is, the ratio of changes in sales to changes in space.

One of the most precise approaches is to measure the total SKUs on the shelf—yours and your competitors’—and divide by the number of yours. Chances are if you have a retailer who has been consistent with your agreement for shelf space you can use one of the less time-consuming methods.

Shelf-space optimization models support retailers in determining the optimal shelf configuration. They determine the number of facings for each item included in the assortment. A common characteristic of these models is that they do not account for in-store handling processes.

Channel blurring—a phenomenon in which consumers are moving their purchases of a product category from channels or retail formats traditionally associated with that category (e.g., grocery) to alternative channels (e.g., mass, club, extreme value/dollar) and in which retailers from one channel are selling items …

Shelf-life ratio is one of the main concepts that Triage Tables use to identify the class of service for the work items. It reflects a ratio between how long it takes to deliver vs.

To calculate it, divide your sales by the store’s total square feet of sales space. Your sales per square foot tells you how efficient you are with the use of sales space, and it helps you make smarter merchandising, inventory, and sales decisions.

A space-to-sales analysis is a simple way to get a quick glimpse of how your front end is performing in comparison to its potential. You know your store and what your customers are seeking better than anyone else, so use your judgement when completing this analysis and making changes.

Measure simple square footage. To measure commercial square footage for a rectangular space, multiply the length of the room in feet by its width. For example, a room that is 12 feet long by 12 feet wide is 144 square feet.

Circular shelves or bins should be measured along their outer edge (circumference), which is the equivalent of the linear shelf space of regular shelves. The easiest way to measure a circular shelf’s circumference is to measure the diameter of the bin. The diameter is the length across the middle of the circle.

Way late to post this but amongst a lot of other tools, WoodMaster for Android has a built in shelf spacing calculator. Nice woodworking app. I’m not very good at math so anything helps.

Space Elasticity of Demand. Price elasticity of demand is a widely understood economics principle, describing a direct causal relationship between the observed level of demand of an item at varying prices… Space elasticity could be defined as the more complex relationship between retail space allocation and observed demand.

In summary, space elasticity can be applied at various levels to retailers in defining clusters of stores performing at various levels, across categories. Trials can demonstrate where subtle shifts in space allocation, layout, adjacency and assortment can make significant changes to performance, so, optimal sales and productivity can be achieved.