With hundreds of new product launches a year, a growing non-food assortment and the rapid expansion of chilled foods, lack of shelf space is becoming an increasingly limiting factor in the supermarket environment. Building bigger stores or enlarging floor space is only part of the answer. The challenge is to utilise existing store space in better and more efficient ways.
Elsevier Food International, Vol. 4, Number 4, November 2001
Vincent Hentzepeter

Smart shelf solutions aim at maximising the usage of store space, lowering the costs of merchandising, while at the same time increasing sales by stimulating impulse buying. The cost of investing in modern shelf design may seem formidable, but higher sales per square metre of shopping floor area can easily compensate for this. And, in the long run, increased profits may result.
The Metro group promises substantial increases in storage capacity simply by making the shelves themselves thinner. May last year saw the introduction of its Drop Mat Display System, which increases merchandising space by up to 30 per cent. A Drop Mat shelf is quarter of an inch thick, while a gondola shelf is typically one to one and a half inches thick. Using a Drop Mat, then, results in a difference of 83 per cent in shelf thickness, saving over one inch of vertical space per shelf level. According to Metro, space optimisation has a positive effect on the overall profitability of individual supermarkets. A study of the shelving used to display salad dressings in Marsh Supermarkets (US), comparing 16 inches of gondola shelving with 16 inches of Drop Mat shelving, yielded impressive figures. The implementation of the shelf solution meant an increase of about 19 per cent in width space, a 17 per cent raise in holding power and an additional bonus of 22 new SKUs (an increase of 14 per cent) added to the product mix. Moreover, gross margins for the group containing salad dressings/topping, mayo dips and so on were significantly higher. Thus, return on investment for the new shelf system was only 20 weeks.

Best of both worlds
Cefla, the Italian manufacturer of checkout counters and shelving for food and non-food retailers, has come up with 'Global'. This is an integrated rack-pius-shelving solution for cash and carry, hypermarkets and discount stores that aims at maximising the space available for consumer products without compromising stock storage areas. The new fixture design features traditional display layout below and stock storage above. Cefla promises great space savings and quicker stock handling thanks to this combination. The company says that, with merchandising stored in the sales area, the need for a separate warehouse is highly reduced. In order to make an attractive visual impact, side supports have been eliminated, but without compromising loading capacity. This design means a more elegant-looking fixture, which at the same time offers greater product-visibility to the consumers.
According to Cefla, benefits such as fuller displays and better merchandising opportunities are now within reach. And such benefits would be particularly valuable in cash and carry and discount stores. Furthermore, the system is modular and therefore highly versatile, allowing for easy changes in merchandising and maximum display impact. Earlier this year, Cefla also announced a new extra-low base for both food and non-food shelving. This product allows retailers the flexibility to lower the shelves to an optimum eye-catch positioning. Alternatively, its loading capacity can be increased with the addition of an extra shelf level.

Sophisticated shelf system

HL Display's Opti shelf system includes clear plastic dividers and a pullout feature that enables the shelves to be restocked with ease.

Other elegant shelf-saving solutions have been developed by the Swedish company HL Display. By introducing a tighter setting, more shelves per section can be installed. Without certain adaptations to the shelf system, however, this approach could result in less free-hand space between the top of the products and the next shelf. What's significant from the consumer's point of view is the fact that it becomes harder to access products that are not displayed at the front edge of the shelf. Re-stocking by shop staff may also prove problematic.
HL Display has devised a more sophisticated type of shelf design. First of all, the system is comprised of clear plastic dividers that are clipped onto a track, enabling step less lateral display. The accessory range includes adjustable back plates for vertical display and stock limitation. An automatic feeding option for continually displaying products at the front of the shelf is also available. The so-called Opti shelf-system is provided with a pullout feature, which enables the shelves to be placed with less distance between them, removing the normal hands-free space required for re-merchandising. The Optimal?' gravity or pusher feed system (its application depending on the product) ensures that the product is automatically moved to the shelf edge. Re-merchandising is easy, too. After releasing the locking mechanism, reloading can begin. Recently, HL Display has introduced semi-automatic feeding systems. In this case store personnel use a so called pull-strip to move products forward on the shelves. These solutions are particularly useful for products and packages that do not allow automatic spring-loaded or gravity forwarding, such as heavier and non-rectangular product packages. These innovative merchandising systems, along with new price solutions for HL Display, were first implemented at Auchan's Val d 'Europe store near Paris. The huge two storey supermarket opened on October 25th 2000, with building work having begun eight months before. Prior to the store's opening, display products used at Val d 'Europe were discussed and evaluated, with the various potential solutions pre-tested at Auchan.

Hyper-modern solutions
In the hyper modern Auchan supermarket, HL Display has come up with several different variations to the Optishop'" concept, such as shelves with a gravity solution, extendable shelves that optimise all shelving space and make re-merchandising easier (the Optishelf™). Modular shelf management systems with dividers, back supports and automatic feeding systems (Optimal™) complete the shelf system. Half of the shop is equipped with HL Display's latest datastrip, 'Slimline', while the other half is equipped with electronic labels for which HL Display provided the holders. The complex in Val d'Europe served as a testing ground for Auchan during the evaluation of the Optishop concept, and the system has survived any criticism. Auchan has announced that the majority of units from the concept will be integrated in all hypermarkets under construction and in all other hypermarkets undergoing refurbishment.

Integral shelf approach
Of course, smart shelf space solutions are not the sole answer to the issue of space optimisation, but rather, should be seen as part of an overall strategy. And there is still a long way to go before the dream of ultimate shelf optimisation can be realised. An FDI (Food Distributors International) study last year suggested that independent supermarket retailers could achieve significant category increases if they adopted some practical solutions to improve use of shelf space. Such moves could help see independent supermarket retailers, working with their trading partners, achieving category increases of 21 per cent in unit sales, 12 per cent in dollar sales and seven per cent in gross profit.
Making more effective use of shelf systems alone is definitely not enough to achieve these financial and sales goals. Smarter use of shelf systems, speeding up the time it takes to get goods into shops, eliminating out-of-stock problems and ensuring perfect timing for new introductions will all have their part to play in meeting this, one of the major challenges for food retailers.