Space Planning Optimizer Overview
Executives agree that optimizing store space is central to driving profits, but many of them rely on complex methods that are often time-consuming and provide conflicting results. APT’s Space Planning Optimizer software rapidly analyzes space data to help leading companies optimize space allocation across stores, departments, and categories. By controlling for external factors, the software determines the change in financial performance directly caused by each change in space allocation and predicts the marginal productivity of changing space allocation at any level. The advanced, automated solution gives decision-makers actionable recommendations that help them achieve fast, accurate, and localized results.
APT’s Space Planning Optimizer software enables companies to reach their performance goals by answering key macro and micro space allocation questions, such as:
- How can we make targeted space changes by store, department, or category to maximize sales?
- If we increase space for a product, what is the expected response in sales and margin?
- Which items should receive additional space with endcaps or fixtures?
Compared with existing approaches to space planning, which typically include large spreadsheets, complex queries, or simply “gut instinct,” APT’s Space Planning Optimizer offers the following benefits:
- Localization: The software provides tailored space recommendations for each store or cluster.
- Speed & Scalability: Full automation allows users to analyze space trade-offs in just minutes or hours, as opposed to days or weeks.
- Best-in-Class Analytics: Advanced algorithms analyze stores with historic space changes vs. control stores to predict the marginal productivity of each potential space change.
- Intuitive User Experience: Users only need to answer a few simple business questions to begin: Which categories do you want to optimize,and which metrics do you want to maximize?
- Flexibility: Space Planning Optimizer accounts for unique operational constraints to ensure that recommendations are realistic and ready to implement. The software also integrates smoothly with planogram solutions.
Data integration for APT’s Space Planning Optimizer software only takes a few weeks, and users can be trained in hours.
“Licensing APT’s Space Planning Optimizer has enabled us to drive significant margin increases by reallocating our space in numerous categories, and to rapidly transition from analysis into implementation. By rolling out the optimal merchandising strategy on a store-by-store basis, we are able to capture significant additional value across our network.”
– Director of Space Planning & Merchandising at Wawa
- Current space data
- Financial performance data (e.g., sales by product, by day, or by week)
- Any additional relevant data available (e.g., store location, stock-out, inventory data, etc.)
- Local demographic data
- Weather data
- Competitor locations
- Retail sales data for the areas immediately surrounding each store (from the APT Index)
- Other third party data sources