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The Importance of Macro and Micro Space Planning

The Importance of Macro and Micro Space Planning 1466 797 Scorpion Planogram

The difference between macro and micro space planning

Micro and macro space planning are two strategies that retailers can use to optimize their retail space. Macro space planning refers to the positioning of fixtures on which products are merchandised to create departments within the retail space. Macro space planning is important as it allows for traffic flow of customers throughout the store as well as provides retailers with a tool to determine what products are seen by customers.

Micro space planning involves the analysis of product data and sales to plan the positioning of the products on the shelves and fixtures. This allows retailers to create categories by product type and to optimize sales based on such data.

Why all stores need both macro and micro space planning

If both macro and micro space planning are correctly executed, retailers have an increased chance of having satisfied shoppers and increased profits. By using macro space planning, the store is analyzed on a category level and the store space can be optimized in terms of profit per foot. 

Micro space planning enables the retailer to optimize the product mix within a category based on product performance. For example; macro space planning analysis of a store shows that Category A takes 15% of the total store space, whilst only providing 10% of the total store profit. The store can decide to reduce the store space allocated to Category A by using micro space planning to identify the products within Category A that have the lowest sales performance. 

When to use either micro or macro space planning

As the name suggests; macro space planning is comprised of retail space planning on a higher retail space level (macro) whilst micro space planning is comprised of smaller scale retail space planning (micro).

When big changes occur in a retail setting, for example when seasons change, macro space planning comes in as a holistic approach in planning changes to be made. These changes are done in regards to departments and categories and re-positioning them within the retail space. Another example when macro space planning is essential is when new store openings are being planned. This involves arranging larger fixtures, such as tables and gondolas. Any changes to the floor plan of the store fall under macro space planning.

Micro space planning is essential when the product selection is being changed, for example due to different buying patterns or introduction of new products. Where macro space planning encompasses the floor plan of a space, micro space planning focuses on product placement on fixtures and shelves.

Micro space planning and macro space planning are both essential in the retail store space planning process. However, micro space planning can be used on its own, whilst macro space planning is almost always used in combination with micro space planning as the data from the micro space planning feeds macro space planning.

How to create a micro/macro space plan

Scorpion Planogram is used to firstly synchronize your product data and images to the platform. When all the data is imported into Scorpion, the fixtures and shelving are created as templates for merchandising products. Using the product analysis and insights, products can now be dragged and dropped onto the fixtures already created. This is the method used for micro space planning.

Within the same application, the store plan can be drawn or imported. Once the store plan is drawn, the planograms (fixtures) can be dragged and dropped onto the store layout. This is our macro space planning method.

From there, the store plan and planograms should be analyzed on a regular basis to ensure an optimised category and product mix. Based on this analysis, changes can be made to both the planograms and products within them as well as the departments within the store plan.

 

Contact us and let the team at Scorpion Planogram help you decide on the best planogram and space planning option for your retail space.

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