Space management in the fashion retail industry, by Esther van den Aarssen (with WE Fashion)
June 7, 2013
Space management in the fashion retail industry receives more and more attention as a way to enhance the store’s sales. In this study, space management is investigated by determining the departments that a store should contain, and subsequently, the size of these departments. Regression analyses show that the sales of a store can be predicted with a forecast accuracy of 88.3 %. In addition, it shows that the numbers of visitors and equivalents (i.e. the size of a store) greatly influence the sales. Subsequently, the stores are grouped and quantitative, as well as qualitative, research provides insights into the other variables that influence the store’s performance. Finally, recommendations are provided about which departments each store should contain, and how the division of these departments within the store should be, to maximize sales. In general, a Men’s-Boys’ store is preferable for generating the highest sales.