Space Management: Enhancing Customer Experience & Merchandising

1. Space Management Overview Exceeding customer expectations through merchandising excellence

2. Training Objectives • Understand why Space Management is important • Identify the key responsibilities of Space Management • Describe the primary tools used by Space Management • Explain the goals of Space Management At the end of this session you should be able to:

3. So, exactly what “Space” are we talking about?

4. Space is the medium that we use to: • Display and promote our products Racks and Shelves Gondolas and Endcaps

5. Space is the medium that we use to: • Communicate the Best Buy brand Interactive Displays Creative Signage

6. The Best Buy Experience

7. A multitude of inputs Many departments have input on how the store should look & shop • Store Planning • Implementation of prototype standards • Strategic Marketing • Brand management • Retail Operation • Efficientprocesses and programs for the company • Buying • Buys product • Inventory • Manages inventory stock levels • Space Planning • Space allocation and evaluation • Visual Merchandising • Develops fixtures, graphics, interactives • Communication • Internal communication, public and community relations

8. So, who develops and communicates the merchandise plan for this valuable space?

9. Space Management Mission To provide product placement that compels our customers to purchase complete solutions.

10. Space Management Goals • Enhance the Best Buy brand by improving our customer’s shopping experience. • Provide Retail with easy-to-execute Maps and Planograms • Analyze category and item effectiveness to determine the optimal use of space • Provide customized maps and planograms to support market specific assortments

11. Key Responsibilities • Where do the categories go? • Where do the products go?

12. Key Responsibilities • What is the best use of the space? Hmm… Not a lot of free space here!

13. Space Management Organizational Structure SR. VP John Thompson Director of Space Management - Heather Elliott-Kirsch Merchandise Layout Team Planogram Team Space Planning Team

14. Merchandise Layout Store maps are created using AutoCAD Each small block is an individual “section”

15. “Educated” Layout Each and every store needs to be designed with the following criteria in mind: • Financial Objectives • Revenues, Turns, Margins, etc. • Operational Objectives • Aisle Width, # of Registers, LP Desks, Stock Capacity, etc. • Aesthetic Objectives • Best Buy Branding, Clear Sight Lines, Fun Interactives, etc.

16. What is a Planogram? Planograms are created using Intercept

17. How to read a Planogram Signage Displays Boxstock Product Listing Fixture Placement

18. Space Planning • Mission: • Providing Best Buy with Space Allocation and Evaluation Recommendations which Enable the most Effective use of Retail Space. • Square Foot Analysis (Store, Dept, Class, Subclass) • Store Capacity and Cubic Space • Store Overstock and Closeout Analysis • Adjacency Recommendations • Marginal Return on Space Analysis • Ad Hoc Retail Space Related Investigations

19. Space Planning All the “Right” stuff Space Allocation The Right Space The Right Place Positioning The Right Neighbors Adjacency & Attachment

20. Positioning The Right Place

21. Adjacency The Right Neighbors

22. Q & A