NSLC Shelf Management

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NSLC Shelf Management

• Project Overview
• August 25, 2005

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Agenda

• Project overview
• Purpose, objectives, key milestones, timeline
• Merchandising best practices
• Work done to date preliminary findings
• Next steps

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Project Purpose

• To develop a series of standardized plan-o-grams
  that are easily implemented across all stores and
  reflect the NSLCs product assortments

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Project Objectives (1)

• Create standardized plan-o-grams based upon the
  product assortments
• Significantly reduce the number of plan-o-grams
  the NSLC uses
• Position Merchandise Department to integrate
  information with other areas of the business

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Project Objectives (2)

• Standardize processes for
• Anomalies (e.g., products not within the
  assortment)
• Ongoing management
• New products
• Product retirement
• Plan-o-gram compliance

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Key Milestones

• Define project requirements and parameters
• Linear feet per (1) Store, (2) Assortment
• Merchandising rules
• Prepare and implement pilot
• Young Street
• Rollout across network
• Prioritize subcategories across network
• Closeout activities
• Retire old system (Omnis)

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Project Timeline
Define Parameters
Prep / Implement Pilot
Network Implementation
Project Management, Training, Communication
June
Sept
July
Aug
Nov
Dec
Oct
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Merchandising Best Practices

• Considerations (1)
• Category Management
• "Where" product goes
• Drives primary blocking requirement (vendor,
  brand, function or price)
• Identifies secondary blocking requirement
  (vendor, size, brand, function, price,
  sub-category, etc)
• Physical Space Constraints
• Maximize available shelf space in plan-o-gram
• No dead space

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Merchandising Best Practices

• Considerations (2)
• Space Productivity Goals
• Identify productivity measures (e.g. sales or
  margin per sq ft)
• Maximize productivity
• Holding Capacity Optimization
• Identify thresholds for over and understock
  positions based on rate of sale

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Store Operations Requirements

• Plan-o-grams to be distributed and executed by
  shelf and/or fixture 
• Number of facings per SKU must support holding
  power
• Managers discretion to shelve products outside
  of the defined assortment subject to approval

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Progress

• Validated stores linear footage
• Validated proposed assortment dimensions
• Determined the assortment that fits in each store
  (based on assortment length, estimated facings)

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Linear Footage Total vs. Component (New)
Assortment Class
Meeting A/B/C/D LF requirements for Beer, BOTW,
Other, and Total
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Implications

• Need to understand what is an A store?
• One with the requisite total number of linear
  feet?
• OR
• One with the required number of linear feet for
  each component (beer, BOTW, other)?

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Next Steps

• Confirm assortment lengths
• Seeking help with container dimensions
• Prepare and execute pilot store (Young Street)
• Rollout across network

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Questions?