Work out shelf space allocation instantly with clear inputs, formula shown and shareable results.
Space allocation on sales share alone rewards volume regardless of profitability, while margin share alone starves the traffic-driving lines. Blending the two is standard practice, and showing both extremes reveals how much the weighting choice actually moves the allocation.
Blended share
Blended = Sales share x Weight + Gross profit share x (1 - Weight)
Allocation
Space = Total category space x Blended share
Yes, beyond what the formula gives. Lines that bring customers into the store carry value not captured in their own sales or margin.
That is the more sophisticated measure — gross profit per linear metre — and it is the right basis once you have reliable space data.