Retail Space Productivity


Retail Space Productivity

Retail space, flow and design is one of the most valuable tools to influence the shopper’s purchase. Poor aisle and space/shelf design can undermine any well-intended shopper engagement. Leading retailers recognize that orchestrating shopper behavior requires disciplined planning that to deliver the following objectives:

  • Attract – Prompt the Shopper to the aisle or category
  • Guide – Assist the shopper in finding the solution to their need
  • Influence – Encourage the shopper to learn, explore, experiment, trade up, build baskets
  • Optimize – Design the right balance of product availability, labor costs and inventory turns

By understanding the shopper motivations, purchase barriers, and behaviors along the consumer and shopper journey retailers uncover required actions for effective shopper engagement.  Retailers that are successfully translating these actions are reinventing the shopping experience and driving profitable growth.  Lifts measured pre and post space optimization are yielding 6-10% lifts post execution vs control stores.


Retail Buying and Merchandising


What We Do

TPG’s retail team provides a comprehensive and proven approach for understanding space optimization and shopper barriers and triggers to craft and execute the use of space within and across categories. A partial list of our consulting services includes:

  • Space Management Assessment: TPG will conduct a thorough review of a client’s space management insights, processes, tools and organization capabilities including a review of best practice benchmarking and a competitive analysis.  TPG will also asses 10-15 key categories via store audits to uncover quality levels of execution, consistency and impact of space execution.
  • Space Management Strategy: TPG will work with a cross-functional retailer design team to determine the next generation expectations, guidelines, goals, metrics and strategies for both Macro and Micro space management across banners, formats and store clusters.  This also yields clear guidelines for where to apply or invest in space management design and execution labor.
  • Space Management Planning Process: Through the design and implementation of a continual space management planning process, retailers generate faster changes on more strategic categories with strong, data-driven guidelines of blueprints.  This work involves application of TPG industry best practices, clarifying roles, responsibilities and clear metrics.
  • Space Management Pilot Testing: TPG will assist in the designing and execution of pilot tests to assess newly developed space optimization and shopper engagement concepts and initiatives from analytics to planograms to execution and post audit.
  • Space Management Analytics and Systems Selection:  TPG will facilitate the review, sourcing, piloting, installation of new promotional tools, databases and systems.
  • Space Management Organization Capability: TPG will assess the required organization structure, competencies and training regimen to build the desired shopper engagement capabilities. TPG will then design and implement a Space Management Center of Excellence to build leading-edge capabilities.