•Some factors that retailers consider when deciding how much floor or shelf space to allocate to merchandise categories and brands are:
–the productivity of the allocated space
–the merchandise’s inventory turnover
–the impact on overall store sales
–the display needs for the merchandise.
•A simple rule of thumb for allocating space is to allocate on the basis of the merchandise’s sales.
•Two commonly used measures of space productivity are sales per square foot and sales per linear foot.