Space Management Overview

Exceeding customer expectations through merchandising excellence

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

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

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 inputs
Many departments have input on how the store should look & shop Store
Planning Strategic Marketing
Brand management Implementation of prototype standards

Buying
Buys product

Retail Operation
Efficient processes and programs for the company

Inventory
Manages inventory stock levels

Space Planning
Space allocation and evaluation

Visual Merchandising
Develops fixtures, graphics, interactives

Communication
Internal communication, public and community relations

So, who develops and communicates the merchandise plan for this valuable space?

Space Management

Mission
To provide product placement that compels our customers to purchase complete solutions.

Space Management Goals

Enhance the Best Buy brand by improving our customers 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 Management
Organizational Structure
SR. VP John Thompson Director of Space Management - Heather Elliott-Kirsch

Merchandise Layout Team

Planogram Team

Space Planning Team

Merchandise Layout
Store maps are created using AutoCAD Each small block is an individual section

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

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.

What is a Planogram?
Planograms are created using Intercept

How to read a Planogram

Signage

Displays Boxstock

Product Listing Fixture Placement

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

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

Space Planning
All the Right stuff

Space Allocation

The Right Space The Right Place The Right Neighbors

Positioning

Adjacency & Attachment

Positioning
The Right Place

Adjacency
The Right Neighbors

Q&A