ABSTRACT
In order to achieve these objectives, space management involves a number of process stages. The first is to determine how to measure retail performance in relation to retail space; this relates to the sophistication of retail performance analysis, considered in the previous chapter. The second stage is to determine the amount of space to be allocated to merchandise at various levels, that is, department level, category level and SKU level. The relationship between stock levels and sales discussed in chapters six and seven is important in this operation. The third stage involves determining the quality of space required by product classifications, categories and items. The strategic roles played by product categories and items discussed in chapter three need to be considered when making these decisions. The retailer also needs to consider the practical requirements of individual products that will have a bearing on their space allocation, thereby applying pragmatic retail management to the theoretical concepts regarding space allocation in relation to performance. Finally, space allocation plans have to be implemented in retail outlets and their effectiveness monitored.
