Which shelf in a shelving unit sells better?
'Golden shelf' rule


'Golden shelf' is a concept used by marketing professionals to indicate the fact that a product placed at the eye level of the customer sells much better than a product at a shelf below the waists or higher than the eye level. Hence, to maximize profit it is strongly recommended to place the products with the highest margin on the shelves at the level between 1.2 and 1.7 meters.
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From the practical point of view, to identify the 'golden shelf' in a particular retail store, one should concern the average height of the target customers. If a store sells products for childern, for example, than the shelves at the height of 30-100 cm should be considered as 'golden' ones.
This type of analysis and respective product placement used to be performed by supervisers and store personnel and, hence, required a significant amount of resources. Luckily, today there are software tools enabling to automatically create a shelving unit layout, with all the user defined parameters being concerned.
We, the Lasmart team, do realise how valuable our clients' time is and how it is important for them to make the retail space work efficiently. This drove us to develop a special tool within Lasmart SpacePlanner service to allow you to solve the problem of the 'golden shelf' layout in a time-efficient manner.
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Top priority shelves height parameter indicates the height of the 'golden shelves'. By default, the range is set between 100 cm and 160 cm, however it can be easily changed in accodance with the height of the target customers for your retail store.
Example

The task: increase profit. All products from the assortment matrix shall be presented on the dispaly equipment
Source data: planogram with sales data
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Analysis and solution. The source planogram analysis shows that the 'golden shelf' rule was not applied to this particular layout: high margin products were placed on the lowest and the upper shelves, while the eye level shelf is occupied with the low margin goods. The analysis makes us conclude that it is highly likely that the retail store gains less profit than is due, with part of the customers not paying attention to the products placed above the eye level, to say nothing of the goods located at the bottom of the shelving unit.
To find a better solution for the task, we can use the above mentioned functionality of Lasmart SpacePlanner service. We just need to set the top priority shelves height parameter as 120-170 cm, sort the products By profit, and apply the settings to the whole planogram.
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Automatic shelf layout planning result is illustrated below:
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The resulting planogram proves that automatic shelving layout algorithm has placed the highest margin products on the 'golden shelves', those being definied in accordance with the height range indicated by us. Low margin products can be found on the lowest shelves, while goods with medium size margin are located above and below the 'golden shelves'. Applying this shelving unit layout in our retail store is sure to increase the overall profit, as the original task requires.
You can test the shelf planner tool, with the settings being adjusted according to your particular requirements, in our FREE online version of the service: cloud.spaceplanner.online