The Golden Shelf rule
Which products to put on those and what impact they have on revenue
The term 'Golden Shelf' is understood by marketers to mean the following principle - a product that is located at an eye level of the buyer sells significantly better than one that is located below the waistline or above eye level. Hence, from the definition it can be understood that at eye level, approximately 1.2 to 1.7 metres, the highest-margin or a contrasting product should be positioned to attract the customer's eye.
The term 'Golden Shelf' is understood by marketers to mean the following principle - a product that is located at an eye level of the buyer sells significantly better than one that is located below the waistline or above eye level. Hence, from the definition it can be understood that at eye level, approximately 1.2 to 1.7 metres, the highest-margin or a contrasting product should be positioned to attract the customer's eye.
In simpler terms, when defining the "Golden Shelf", the average height of the target audience should be taken into account in the first place. For example, in shops with children's goods, shelves at 30-100 cm would be considered "Golden Shelves"; in shops whose target audience includes adults, shelves at 120-170 cm from floor level would be considered "Golden Shelves".
And while in the past this issue was handled solely by supervisors and line staff, costing the shop much-needed man-hours and manpower, now it is possible to do automatic product display with pre-set parameters.
Now let's look at the challenge at hand: To increase profits. In doing so, the entire range must also be displayed in a shop window.
Superstructure of the Golden Shelf display
At Greenshelf, we understand the importance of both our customers' time and the importance of generating maximum revenue for them, so as part of the Greenshelf service, we have developed an add-on that allows you to solve the issue of shelving on your 'golden shelves' in a short timespan.
"First priority shelf heights", these are the very 'Golden Shelves'.
The standard spec is between 100 cm to 160 cm, but this can always be changed to suit your target audience.
What we have: a planogram with sales figures:
And while in the past this issue was handled solely by supervisors and line staff, costing the shop much-needed man-hours and manpower, now it is possible to do automatic product display with pre-set parameters.
Now let's look at the challenge at hand: To increase profits. In doing so, the entire range must also be displayed in a shop window.
Superstructure of the Golden Shelf display
At Greenshelf, we understand the importance of both our customers' time and the importance of generating maximum revenue for them, so as part of the Greenshelf service, we have developed an add-on that allows you to solve the issue of shelving on your 'golden shelves' in a short timespan.
"First priority shelf heights", these are the very 'Golden Shelves'.
The standard spec is between 100 cm to 160 cm, but this can always be changed to suit your target audience.
What we have: a planogram with sales figures:
The analysis and solution:
The current planogram shows that the 'Golden shelves' we are talking about in this article are not being used rationally - low-margin goods are displayed, and goods that are in high demand are on the lowest and the highest shelves. With this kind of layout we can safely assume that the shop is missing out on some of its profits, as some customers may not notice products that are located above eye level, and even more so at the very bottom of the shelf.
Auto-stocking of goods on the Golden Shelves
To solve this problem we will use the functionality of Greenshelf service. Let's set the first priority shelf height at 120-170 cm, select the sorting of goods "By profit" and apply it to the entire planogram.
The outcome of the auto-stocking will be as follows:
The current planogram shows that the 'Golden shelves' we are talking about in this article are not being used rationally - low-margin goods are displayed, and goods that are in high demand are on the lowest and the highest shelves. With this kind of layout we can safely assume that the shop is missing out on some of its profits, as some customers may not notice products that are located above eye level, and even more so at the very bottom of the shelf.
Auto-stocking of goods on the Golden Shelves
To solve this problem we will use the functionality of Greenshelf service. Let's set the first priority shelf height at 120-170 cm, select the sorting of goods "By profit" and apply it to the entire planogram.
The outcome of the auto-stocking will be as follows:
As we can see, after executing the auto-stocking algorithm, the "Golden Shelves" are occupied by high-margin goods, low-margin goods go on the lower shelves, and medium-margin goods are distributed on both sides of the "Golden Shelves". By using this layout in the shop, we can confidently expect to increase profits.