Whether you have a local grocery store, a supermarket or any other type of store, share of shelf for all the products is the best way to develop your commercial space. To succeed this operation, there are some rules that you need to follow carefully. It does not consist of just putting all the things in sale on the shelves. Some parameters are to be taken into account to avoid any risk. The real question is how to measure share of shelf efficiently? Here are the 3 best methods to achieve this goal.
1. Estimate the SKUs Visually
First of all, you should know the definition of the SKU or Stock Keeping Unit. It is a number assigned to a specific product in order to determine its price, options and manufacturer. Clearly, a SKU is used to track inventory in a retail store and helps develop your business considerably. So, the easiest and fastest way to perform share of shelf analysis is to eyeball all of your SKUs. You just have to avoid mistakes in order to obtain best results. By using this very simple method, you must ensure to use consistent increments, such as 25, 50, 75, or 15, 30, 45, etc. The process will not take much of your time but once again, it is crucial not to make any error.
2. Measure the Shelf with a Tape Measure
The second solution to gauge share of shelf for your retail business is to take your tape measure and calculate the percentage of the real length of the shelves that is occupied by your products. This method is probably more time consuming but it also gives more precision in your measurements. Thanks to the tape, you will have accurate and reliable data for a better share of the shelves. It is a good way to account for varying the dimensions of packaging. The ultimate goal is to fill the store by choosing the right location for each product.
3. Calculate the Facings
If you are looking for the most precise method to measure share of shelf, this one is perfect for you. It consists of calculating the total SKUs on your shelves and your competitors’. Then, divide them by the number of your SKUs. Measuring all the facings is even more time consuming than the second method, especially for the sales reps but the results will be the most accurate. Never the less, if you have already hired an expert in shelf space, you can always opt for one of the other two technics to save time.
In a nutshell, share of shelf is important to monitor your retail business properly. For this purpose, there are those 3 methods to measure it. If you do not have time, the best solution for you to adopt is just eyeballing your Stock Keeping Units. If you need more accuracy without spending too much time on the process, use a tape measure. And for a perfect precision, calculate the facings, not only yours but also your competitors’.