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Space Planning Optimizer

Using APT's Space Planning Optimizer, manufacturers can understand the trade-offs between space allocation and sales and determine more effective space plans. Space Planning Optimizer analyzes historical sales data and planograms to understand space elasticities at various levels of the product hierarchy on a store-by-store basis. These elasticities are then used to adjust space allocations to improve sales and profits, providing an enhanced space plan with an associated forecast. Space plans can be created for each retail partner, and retailer metrics are provided that can assist the manufacturer with the sell-in of the new space plans.

APT Value Creation

Space Planning Optimizer helps answer core strategic questions, including:

Which items would benefit from increased space and which would not be harmed by having less space?

APT’s proprietary algorithms calculate the elasticity of space on a macro and a micro level, based on the understanding that there are diminishing returns from allocating incremental space. Space Planning Optimizer operates at the store level.

How do you understand the trade-offs in space allocation to determine a better space plan?

Space Planning Optimizer creates a complete space plan, understanding trade-offs between allocating more or less space to individual items, categories, and departments. The algorithms use custom constraints such as minimum department size or fixture length to create space plans that can be operationally executed.

Which performance driving factors are associated with the types of stores that have the highest potential gains from a proposed space plan?

Space Planning Optimizer in conjunction with APT's Test & Learn™ solutions reveal the store, demographic, and competitive factors that are associated with above average performance. This allows for further refinement and targeting of space plans.

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