The purpose of this article is to provide a brief explanation of a few of the commonly formulated fields used in the DotActiv software as well as how each of them is calculated.
This is the two-dimensional area (facing forward) taken up by a product [Height * Width]. It is shown in metres-squared.
Forward Share calculates the two-dimensional forward space a product occupies across a planogram as a percentage.
It’s a relative measure for ensuring brands receive the space they deserve on the shelf. What’s more, it’s done with the aim of enticing shoppers to purchase more.
For example, if you want to encourage customers to purchase more of a particular product, you could look to increase its share of space. Providing more space for a high selling product leads to more sales.
Cubic space calculates the volume or space of a product on your shelf in cubic feet. It is the three-dimensional volume taken up by the product [ Height * Width * Depth], shown in metres-cubed.
You can also use this measurement to rationalise how much space to give to a sub-category or segment of a product if cubic share is calculated. Cubic share is the percentage of cubic space occupied. Depending on the category strategy, this should be aligned with an average between your sales and units contribution.
One-dimensional space. The total width of the product is taken in metres (or centimetres).
This is similar to forward space except that it would be the area from above (as in looking at the shelf from above). This formula is calculated as follows: [Width * Depth]
%Profit And %Linear
This is calculated as its percentage contribution of the total Profit and Linear Space of the gondola.
The formula for %profit should be (([Fact.Retail.Profit]/GetColumnAggregate(“[Fact.Retail.Profit]”,”sum”)) * 100
Eye-level is considered the most lucrative product position on the shelf. This merchandising strategy is aimed at generating sales as shoppers tend to focus on these products. Depending on your strategy, place bestsellers, house brands or leading brands at eye-level.
Capacity refers to the number of units of a particular product in a planogram. The formula to calculate capacity is Facings High multiplied by Facings Wide multiplied by Facings Deep.
For example, if you have 10 of the same products on a shelf and you pack ten behind one another and pack it one product high, your capacity is 100.
Along with Facings and Minimum Display Depth (MDD) and others, you can also refer to Capacity as causal data.
When importing any new planogram into the DotActiv software, the causal data writes to the database. From there it is exported to a staging table to be picked up and used by your inventory replenishment system.
Congestion is a measure used in relation to your gondolas.
It refers to how full your gondola can be without it appearing messy. Every category has an ideal congestion level, based on the size of the products.
For example, the congestion level for a Baby Diapers category can be as high as 90% because the products are large. That’s not the same for a Stationery category where products are small and so more items on the shelf would mean the shelf appears messy.
Within the DotActiv software, this is available for reporting purposes, and you can view it in the Gondola’s properties window. Your congestion level automatically updates as you add or remove products from your planogram.
Weekly Movement refers to the number of units a product sold over a week’s period.
The weekly movement allows you to calculate your days of supply (DOS). It’s essential to consider it when attempting to understand the rate of sales and the overall movement of any product within your retail business.
Days of Supply refers to the number of days a product is on the shelf before replenishment would be required. You calculate DOS by dividing your capacity by the number of units you sell per day.