Macro Space Optimization

Macro Space Optimization

Macro Space Optimization
January 30, 2016 Revionics

Right-Size Your Store Space

As assortment, space and price all influence shoppers’ purchasing decisions, winning retailers are distinguishing themselves by connecting their strategies in these essential areas. Revionics Macro Space Optimization enables retailers to right-size their store space, identify assortment opportunities, and unlock each store’s revenue and profit potential. Watch this video to learn more.

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People and real estate are the two most valuable, but most costly assets of a retailer’s organization. If a retailer is not maximizing their peoples’ productivity or optimizing their store space, it is costly to a retailer’s bottom line and detrimental to the top line.

Today’s stores aren’t like yesterday’s. To adjust to savvy consumers, stores are smaller and more localized to reflect the community. They have new formats and new layouts, and categories are reset more often to keep with the latest trends. All of these are adding to the demands of space management.

Yet space planners are equipped with tools based on yesterday’s assumptions and luxuries long since passed. They require large teams and long lead times to execute. They cluster their store’s data and cannot create store-specific space allocations. And they use historical, 52-week averages with manual what-iffing, to guess at future space needs. Decisions can’t rely solely on history. And while stores can be similar to each other, it is only when the individual, local refinements are incorporated that space performance can be maximized.

Revionics Macro Space Optimization optimizes any area of a store in a matter of seconds. Optimization can be as broad as an entire store, as narrow as a single section or category, or anything in between. This isn’t manual what-iffing, or fumbling around until you get an answer that feels right. This is predictive, statistical, transparent science using your strategies, store performance and market insights to give you the greatest return.

Revionics helped one retailer to reset and shrink their center store and dairy. Even with a space reduction, they obtained a one to two percent sales gain from the optimized area. While this might not seem like much, what is not reflected in the sales gain are the benefits from the more high-value, high-demand areas such as sushi bars, coffee shops and additional deli, bakery and butcher services that were created with the extra space. Because of the better usage of pack out standards and less shelf space, labor costs were reduced, out-of-stocks became almost unmeasurable, and inventory costs were lowered by 10 to 20 percent.

Macro Space Optimization succeeds by working with your current floor planning system to make it smarter and your employees more productive. It can receive your current floor plans and optimize them. Driven by category strategies and financial objectives, it uses each store’s performance data. It leverages current or proposed assortments, product dimensions, historical micro-space allocations as well as other demand influencers such as loyalty and market basket insights. From this it creates store-specific space allocations, which can then be brought back into your floor planning tool.

But it doesn’t stop there. It prepares you to seize new market opportunities by simultaneously optimizing multiple alternative strategies along with your current strategy. We realize that the cost associated with in-store space adjustments are substantial. That’s why this solution can highlight those stores, departments, categories or aisles that are most in need of change. Enabling you to prioritize your efforts and achieve your return faster.

To learn more about how Revionics Macro Space Optimization can help you, go to or email at