New Kantar Retail and CROSSMARK Study Now Available
BOSTON, May 19, 2010—A newly-released study of linear space allocations reveals key retail merchandising approaches being implemented by major retailers operating across the food, drug, and mass (FDM) channels in the U.S. The Annual Retail Space Allocation Study (ARSA), produced by Kantar Retail and CROSSMARK, reveals compelling and reliable insights on retail merchandising for trade partners, store designers, and others in need of comparable and metrical information about the specifics of retail store space, current allocations of merchandise, and the direction of store design.
“This study is invaluable to companies that need to know where old opportunity has gone and where new opportunity lies within the U.S. retail landscape,” comments John Rand, Senior Director of Retail Insights for Kantar Retail and lead author of the ARSA study. “Assessing the amount of space devoted to a department and facing the shopper and the resulting shopper impact is critical to anyone interested in aligning to retailer strategies,” he continues. This unique study fills the void for an independent, large-scale examination and cross-channel analysis of retailing space.
The study, conducted in June 2009, will be repeated annually to create a baseline and build a database that illustrates store development trends for thousands of stores over time. The study delivers valuable channel and regional comparisons as well as analysis of key retailer space allocation initiatives. The study also provides an interpretation of how space allocation by department aligns with ad space in circulars and sales.
“The timing of this study is significant,” adds Ryan McCoy, Retail Division Manager at CROSSMARK. “In the process of dealing with a recession and other factors, retailers in almost every class of trade have dramatically lowered capital expenditures for new stores and have concentrated on remodeling existing properties. Having a firm grasp of what the vector of change is, on a retailer-specific basis, is of critical importance to trade partners and store designers alike,” he concludes.
Significant channel findings include:
- The dairy department in a supercenter is on average 60% larger than in a supermarket.
- Supercenters dedicate 68% less total space to alcohol than do warehouse clubs.
- Mass merchandise stores and supercenters have comparable store space devoted to HBC and cosmetics.
- As a percentage of the total store, drugstores offer the most promotional space.
Key retailer highlights include:
- Walmart: Space allocation for traditional food and consumable products has been outstripped by the rate of sales development. A considerable change in allocation of space is expected as a result of Project Impact, and—even though the study data was collected before a significant number of Project Impact remodels had taken place—some of the changes are already clear.
- Target: The retailer is particularly under-spaced in the categories showing the highest year-over-year growth and store space allocation for grocery is generally undersized compared to its contribution to sales.
- CVS: Promotional activity, sales trends, and space allocation at CVS are remarkably consistent, in contrast to other retailers.
About the Annual Retail Space Allocation Study
The objective of the study is to provide a reliable in-depth sample of the linear space allocations by department for the following channels of retail:
- Supermarkets
- Drugstores
- Warehouse Club Stores
- Mass Merchandisers
- Supercenters
The study reveals retail space approaches used and the merchandising emphasis by department (for more than 15 departments) in over 650 stores, covering all national and regional retailers operating in the FDM channels, including Walmart, Target, Costco, Safeway, Supervalu, and CVS.
To learn more about the Annual Retail Space Allocation Study follow this link: http://www.mvi-insights.eu/SpecialReport/SpecialReportSummary.aspx?id=311781. To inquire about how to purchase a copy of this study, contact customerservice@mvi-insights.com.
About Kantar Retail
Kantar Retail (www.kantarretail.com) is a global retail insights and consulting business that works with clients to transform the behavior of consumers, shoppers and retailers. Kantar Retail serves the world’s leading retailers and manufacturers and has offices in 15 markets around the globe. By combining the resources of Cannondale, Glendinning,
MVI and Retail Forward, the company solves client issues from tactical to strategic and provides organizations with the skills and capabilities to act. Kantar Retail offers clients better internal alignment and project efficiency, from insight through strategy to activation, and across marketing through category management to sales. Kantar Retail is headquartered in London and is part of the Kantar Group of WPP.
About CROSSMARK
CROSSMARK is a professional services company that helps consumer goods manufacturers and retailers reach their performance objectives. We do this by excelling in four key areas: headquarter selling, retail merchandising, store level marketing, and streamlining trade practices.
In business for more than 100 years, CROSSMARK employs more than 20,000 associates worldwide in offices in the U.S., Canada, Mexico, Australia and New Zealand. Headquartered in Plano, Texas, CROSSMARK is a privately owned corporation.
Our mission is to be the best business services company within the consumer goods industry, delivering growth solutions and exceptional service.
Inspired by
Cannondale Glendinning MVI Retail Forward
For additional information contact:
Katherine Clarke
Vice President, Marketing
Kantar Retail
614.355.4009
Katherine.clarke@kantarretail.com
Jennifer Genson
Corporate Communications
CROSSMARK
469.814.1756
Jennifer.genson@crossmark.com
