The analysis of space performance allows for making merchandising and allocation decisions that optimise sales, stock turn, profit and return on inventory investment. With this you can:

• Reduce total stock holding, as new products lines are planned and phased in, the products and lines they replace can be effectively phased out.
• Reduce markdowns on discontinued lines by improved matching of products to store demand.
• Increase sales per unit of space through analysis of volume, margin and a variety of other related factors.

When space is managed effectively and the analysis process includes understanding both customer purchases and the product offering at that time, then you can make intelligent decisions about customer selection and range structure to improve customer satisfaction.