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Effect of Customer Travel Behavior on Grid Layout and Shelf Space Allocation in Retail Facilities

In: Retail Space Analytics

Author

Listed:
  • A. Reha Botsalı

    (Necmettin Erbakan University)

  • Georgia-Ann Klutke

    (National Science Foundation)

  • Brett A. Peters

    (University of Wisconsin at Milwaukee)

Abstract

This chapter addresses the design of retail facilities. In contrast to traditional manufacturing warehouse and facility design, which typically attempts to minimize material handling costs, retail facilities are characterized by revenue-based performance measures that depend heavily on highly variable customer shopping profiles and demand behavior. In this chapter, we propose a modular design structure for a common layout type in retail facilities, namely, grid layout. Using this design, we analyze the effect of customer purchasing and travel behavior on impulse purchase revenue and customer travel distance. We study four different customer route selection strategies. Our results demonstrate that for grid-based retail facilities, impulse purchase revenue is highly dependent on route selection strategy. We conclude that grid-based retail facilities that are designed to minimize the number of alternate routes through the store can outperform those that allow customers to traverse multiple paths.

Suggested Citation

  • A. Reha Botsalı & Georgia-Ann Klutke & Brett A. Peters, 2023. "Effect of Customer Travel Behavior on Grid Layout and Shelf Space Allocation in Retail Facilities," International Series in Operations Research & Management Science, in: Ahmed Ghoniem & Bacel Maddah (ed.), Retail Space Analytics, pages 1-20, Springer.
    • Handle: RePEc:spr:isochp:978-3-031-27058-1_1
    DOI: 10.1007/978-3-031-27058-1_1
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