When allocating floor space, which items should receive a greater amount of space?

Allocating floor space in a facility is a critical aspect of effective space management, particularly in retail and distribution environments. High turnover items warrant a greater amount of space due to their frequent sales and immediate customer demand. By dedicating a larger area to these items, a facility can maximize sales efficiency and enhance customer satisfaction, as shoppers can easily find popular products.

High turnover items generally generate a consistent revenue stream, making it economically sensible to provide them with more visibility and accessibility. This strategy can lead to increased sales and improved inventory turnover ratios, ultimately benefiting the overall performance of the facility.

While items with high profit margins are important for profitability, they may not necessarily require as much floor space if they don’t sell as frequently. Similarly, seasonal items may only need dedicated space during specific times of the year, and items with low turnover rates, while they may occupy a spot in the inventory, do not justify extensive space allocation as they are not in high demand. Therefore, the focus on high turnover items ensures the facility operates efficiently and profitably by aligning space usage with customer purchasing behaviors.