The percentage is the best way to determine the ratio of a particular item stock to other items. It is also possible to measure it in centimetres. This is not as convenient, but this approach is also used in retail shops.
What does the proportion of the shelf depend on?
The main criterion by which space is allocated to the SKU is sales statistics at the point of sale. Correct calculations will help to identify discrepancies with overall sales figures. As a result of incorrect allocation, some products are not bought as actively as the manufacturer expects.
How do you calculate the percentage of shelf space in a shop?
Let's say a rack of 13 equally sized shelves in a shop is allocated to biscuits. A product called "Choc Leibniz" from the brand "Bahlsen" fully occupies one compartment. That means that its share is 1/13th which, as a percentage, equates to 7.69%.
The same company also produces and sells "Leibniz Dark" biscuits, which also occupies one shelf. Its share of shelf space would be the same as that of the "Choc Leibniz". For all "Bahlsen" products, this would be 2/13 (15.38%).
You can also do the calculation in centimetres. If the width of the shelf is 200 cm, the same applies to the specified biscuits. In cases where 5 varieties of goods with different articles equally share the same shelf space, this figure will be 40 cm for each of them.
Formula for determining the proportion of shelf space
In order to calculate this, the concept of facing must be used. This is the number of products that are at the front edge of the shelf and are in the customer's field of view at a glance. For example, if there are 30 pots of ground coffee on the shelf, and they are located in 3 rows, the SKU has 10 facings.
This percentage can easily be calculated as follows: shelf share (%) = (number of facings / total number of facings) x 100.
Here is an example of a calculation. In the juice section of the shop, 4 stock counting units are displayed. Distribution of goods in the first row:
• «Capri-Sun» – 5;
• «Orangina» – 3;
• «Oasis» – 2;
• «Tropicana» – 7.
There are a total of 17 facings on the shelf. If you calculate the share of shelf space for the first product, it will be (5/17)x100=29.4% (rounded to tens). For the last product on the list, the same formula would result in a figure of 41.1%. Thus, you can quickly calculate the share of shelf space using this scheme without having to do the calculations manually.