Optimising Retail Ranging: Ensuring a Seamless Range Flow with the Store

Optimising Retail ranging, or the process of selecting and organising products to sell within a store, is a strategic element of retail success. Done well, it ensures that the right products are available to the right customers in the right locations. A well-executed range plan can boost sales, enhance customer satisfaction, and contribute to a strong store identity. However, one of the critical challenges in retail ranging is ensuring that the range “flows” with the store – aligning product selection, placement, and visual merchandising with the store’s layout, brand, and customer expectations.

This article explores the key principles of retail ranging and how to ensure it aligns effectively with the store to optimize both sales and the shopping experience.

1. Understanding & Optimising Retail Ranging

Retail ranging involves selecting the mix of products to be stocked in a store, based on customer demand, store size, and the retailer’s strategy. A well-planned range includes:

• Core Products: These are staples that are consistently popular and critical to the store’s offering.
• Seasonal Products: Items that appeal during specific times of the year, such as back-to-school supplies or holiday decorations.
• Trend-Based Products: New and fashionable items that reflect current market trends.

While these categories are essential for determining the range, what sets high-performing stores apart is the way the range flows through the store, making it intuitive for customers to find, engage with, and ultimately purchase products.

2. The Importance of Range Flow

Range flow refers to how well the assortment of products is integrated into the store layout, making the shopping experience seamless for customers. When range flow is well-executed, customers can easily find what they’re looking for, and the store layout naturally guides them to other products they may need or want. Here are some key elements to consider when ensuring that a product range flows with the store:

• Category Adjacencies: Product categories should be placed in logical proximity to one another. For example, in a grocery store, placing dairy products near baking items makes sense for customers who are likely shopping for ingredients for recipes. Similarly, in a fashion retail store, accessories should be placed near apparel, encouraging add-on purchases.
• Store Layout and Space Allocation: Consider the store’s physical space and how much shelf space each category requires. High-demand or high-margin items should be placed in prime locations, such as at eye level or near the front of the store, while low-margin or niche items can occupy less central areas.
• Customer Journey: Think about the natural flow of how customers move through the store. Popular routes or “hotspots” can be used to showcase best-selling or promotional products. Slower-moving areas of the store can be reinvigorated with impulse-buy items or attention-grabbing displays.
• Visual Merchandising: The way products are displayed is key to maintaining range flow. Group products in a way that makes sense to the shopper, whether by color, size, or usage. Attractive displays can draw customers in and highlight complementary products.

3. Tailoring the Range to Store Demographics

Each store’s product range should reflect the demographics of the local area. A store in an urban setting, for example, may need to stock different products than a suburban store, even if they belong to the same retail chain. Understanding the local market and customer preferences is crucial to aligning the range with shopper needs.

• Data-Driven Insights: Leverage sales data and customer insights to understand buying patterns. Are certain brands or categories performing better in one store versus another? Use this data to customise the range per store location, ensuring that each range is locally relevant.
• Seasonality and Localization: Tailor your range not just by demographics but also by local seasons or events. A store near a beach might prioritize summer-related products, while a store in a colder region may lean into winter gear.

4. Balancing Consistency with Flexibility

For retailers with multiple stores, maintaining a consistent brand identity across all locations is important. However, there should also be room for flexibility to adjust the product range based on local demands. The goal is to balance a consistent brand image and core product offering with the ability to tweak the range based on the unique needs of each store’s customer base.

• Core vs. Flexible Ranges: Maintain a core range of must-have products across all locations to preserve brand identity, while allowing for flexible ranges tailored to specific store needs. This balance ensures that customers receive a consistent experience but also find relevant and exciting products that meet their local needs.
• Centralised vs. Decentralised Decision Making: Depending on the size of the retailer, decisions about range flow can be centralised or decentralised. Centralised decisions can ensure uniformity, but decentralised control allows store managers or regional teams to tailor the product assortment to the specific needs of their market.

5. Technology and Retail Ranging

Modern retail ranging is becoming increasingly data-driven and technology-enabled. Advanced inventory management systems, customer analytics, and AI-powered tools can help retailers optimize their ranges based on real-time data.

• Planogram Software: Planograms, or visual representations of the store layout, help retailers optimize the placement of products. With planogram software, retailers can simulate different layouts and product placements to test which configurations work best for customer flow and sales.
• Inventory Management: Automated systems can provide real-time data on stock levels, allowing retailers to adjust their ranges based on demand patterns. This helps avoid stockouts of popular items and prevents overstocking of slower-moving products.

6. Challenges in Maintaining Range Flow

Ensuring that the range flows with the store requires ongoing effort. Some of the common challenges include:

• Space Constraints: Many stores have limited shelf space, and accommodating a broad product range without overcrowding can be difficult.
• Changing Customer Preferences: Consumer tastes and preferences can shift quickly, especially in fast-paced industries like fashion or tech. Retailers must stay agile and adapt their ranges in response to these changes.
• Supply Chain Issues: Delays or disruptions in the supply chain can lead to out-of-stock items or gaps in the range, negatively affecting the customer experience.

7. The Art and Science of Retail Ranging

Effective retail ranging is a delicate balance of art and science. While data and technology play a key role in optimizing the product range, an understanding of customer behavior, store layout, and visual merchandising is equally important. Ensuring that the product range flows with the store is not just about filling shelves – it’s about creating a cohesive, intuitive shopping experience that meets customer needs while maximising sales potential.

For retailers looking to enhance their ranging strategies, the key is to combine localized product selection with smart, customer-focused merchandising practices, ensuring that every store tells a story that resonates with its customers.