optimizing store layout for more effective floor usage 6 1345 jan hillesla… · dwell time -stop...
TRANSCRIPT
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OPTIMIZING STORE LAYOUT FOR MORE
EFFECTIVE FLOOR USAGE
Analyzing shopper's in store shopping behavior with observation technology and understanding how the shopper behavior
relates to sales
Case study: increasing sales with +25% by optimizing the store layout
Jan Hillesland, CEO at Link Analytix Global
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Jan Hillesland
Consultancy
Retail optimization shopper
marketing research
Loyalty
1-to-1 marketingRetail Operations &
monitoring systems.
Employee
empowerment
Shopper flow,
Counting & queue
CO-OWNER / CEO – SHOPPER & RETAIL INSIGHT
SOME CUSTOMERS
EXPERIENCES
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3
Conversion Rate
& Shopper Flow
By sophisticated
camera software installations
Shopper Heatmaps and Flow Shopper Counting and Conversion
Rate
Standard hardware and our own sophisticated
software
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LINK ANALYTIX – DOUBLE DIGIT GROWTH YEAR ON YEAR
R&D / SUPPORT
GLOBAL
Oslo
NORDIC
N/S/DK/F/I &/ UK
OSLO
DACH* /
SWISS
SWITZERLAND
EASTERN
EUROPE
POLAND
SOUTH
EUROPE
SPAIN / C-America
SE EUROPE &
Middle EAST, ASIA,
AFRICA
Ankara Tekno port
GLOBAL
Tallin - Estland
Middle EAST
GCC
DUBAI
R&D / SUPPORT
ACCOCIATED PARTNERS
UK
USA
OPEN/TBD
Searching
England
USA
+++’
++
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OPTIMIZING STORE LAYOUT FOR MORE EFFECTIVE FLOOR USAGE
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1% 80% 20%1-3 3-7
The customer sees
less than 1% of the
items in a store
The customer uses
80% of the time in a
store to look for items
The customer sees only
1-3 items in a shelf.
Shopper
DE-SELECT items
Customers visit on
average between
20-30% of
the store.
Average
time in store
INSIGHTS – SHOPPER BEHAVIOUR
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HUGE VARIATIONS
IN SALES AREA
PRODUCTIVITY*
GfK 2015
Average sales per M2
EUR 4.200
Huge variations means huge
potentials for improvements
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8
TOOLS & PROCESSES
Shopper & Retailer Insights
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INSIGHTS – SHOPPER BEHAVIOR
CROWD
SIMULATION
SHOPPER
FLOW
SALES
NUMBERS
EYE-
TRACKING
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MOST STORES HAS A LOT OF ”DEAD” SPACE– and a lot of products with very low turnover & sales
CONVENIENCE STORE / FUEL STATION FURNITURES & HOME APPLIENCES
GROCERYCOMETICS
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CONVENIENCE STORE / FUEL STATION FURNITURES & HOME APPLIENCES
GROCERYCOMETICS
MOST STORES HAS A LOT OF ”DEAD” SPACE– and a lot of products with very low turnover & sales
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THE SAME GOES FOR SHOPPING MALLSsignificant sales increases by moving shoppers into a new zone
ENTRANCE
ZONE 5
COLD
ZONE 1COLD
ZONE 4
HOT
ZONE
AVERAGE
ZONE 3 ENTRANCE
ZONE 2
HOT
ZONE
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Film 2
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‹nr.›15
75%OF STORE SPACE IS HARDLY
VISITED
&
AND THAT FOR A GOOD
REASON
Its not easy to move around in this store -Its hardly any space at all
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‹nr.›16
THIS IS
QUITE SOME
EXPENSIVE SPACE
#
IT NEEDS TO BE
UTILIZED !
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SHOPPERS ENTER SOME ZONES & ENTRANCES – AND AVOID OTHERS.
Inviting and open. Easy to access and plenty of space.
Products in the walkway – to see & touch
Inviting with varm and attarctive lighting BUT nearly
impossible to find a place to enter
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THE MORE PRODUCTS WE HAVE
THE MORE WE SELL?
DO WE NEED MORE PRODUCTS TO IMPROVE SPACE UTILIZATION ?
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‹nr.›19
5%
50%
5 % of the products generate 50 % of the revenue
PARETOS LAW says 80/20 but in
retail its even more concentrated
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… MORE PRODUCTS?
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‹nr.›21
PERSONAL SPACE
&
COMFORT
ZONE
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PERSONAL SPACE & COMFORT ZONE
3,6 m
Social
zone
Audience-
zone
Personal Space
20-30 cm
i Syd Europa
70-80 cm
i Nord Europa
120 cm North
America
100 cm
Global Average
40cm 70 cm
Intimate
zone
Friend-
zone
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ROUTES– WE MOVE TO THE RIGHT
14%
52%
34%
24%
59%
17%
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MOVING TOWARDS A TARGETFastest way from A to B
A
B
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MOVING TOWARDS A TARGETMental obstacles & mental fences “force” us to take another direction.
A
B
These walkways are around 60-80 cm width and simply to narrow “mentally” / not
physically– a “mental fence” that most shoppers avoid
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LESS THE 10% OF SHOPPERS MOVE OUT OF THE ”MAIN STREET”
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LIGHT, WIDTH, HIGHT OF BUILDINGS -OR SHELVES,
HAS A SIGNIFICANT INFLUENCE ON SHOPPER BEHAVIOUR
This direction? …or this direction?
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WHO WANTS TO ENTER INTO THESE CORRIDORS?
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INVITING SHOPPERS IN…
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PERCEPTION OF WIDTH IS CLOSELY CONNECTED TO
HIGHT OF SHELVES & A GENEREAL OVERVIEW.
This STORE ? …or this STORE?
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33
Link Analytix
Cases
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MORE TIME SPENT IN A STORE
=1%INCREASED REVENUE
1%
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IN-STORE SHOPPER BEHAVIOUR By RetailFlux
Where do the customers go?
– Passersby / Shopper flow
Where do the customers stop?
– Dwell Time / Stop & Shop
RetailFlux Flow is a Link Analytix product which can e.g. be utilized for an as-is analysis of optimization of spaces and zones as well
as customer flow.
WOMAN FASHION
Entrance
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Shopper Flow / Passersby
Dwell time -Stop & Shop
45% of the store is visited by shoppers .
Only 25 % of the space is characterized
by customers ”stopping and shopping”.
AS IS-ANALYSIS – WOMAN FASHION
The right side of the store is hardly visited at all
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What is the width of a mental fence?
And how wide does a space have to be for
customers to step in and examine products?
HOW MUCH SPACE IS NEEDED? For the shoppers to examine the racks? To ”stop” shoppers walking by?
BEFORE AFTER
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ADJUSTMENTS & IMPROVEMENTS
FLOW - PASSERSBY
DWELL TIME - STOP & SHOP
Here, the customers PASSES BY in approx. 45 % of the store, and
stop in only approx. 25 % of the store
FLOW - PASSERSBY
DWELL TIME - STOP & SHOP
Here, the customers PASSES BY in approx. 85 % of the store, and
stop in approx. 50 % of the store
Entrance
Entrance
Changing
rooms
Check
out
Check
out
Check
outCheck
out
Changing
rooms
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WEEK
24 %MONTH
18 %
(*Improvement of sales relative to product portfolio)
RESULTS
(*Improvement of sales relative to product portfolio)
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Why exactly are shoppers stopping in front of these windows?
ZONE ANALYTIX
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41
THE FIRST EFFECT
Start to measure
Easy access to
Employees on the floor
+10%
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THANK YOUJan.Hillesland @ linkanalytix.net