Allocation of shelf space: A case study of refrigerated juice products in grocery stores

The results of this study show how shelf space can be allocated between products in a profit maximizing framework. Cross sectional data were analyzed to determine whether orange juice might have less than optimal shelf space. Estimates of product demands indicate that cross-facings-per-store effects were insignificant; and, hence, only own-facings-per-store effects were used in the analysis. Results indicate that orange juice's actual share of department facings of 51% is less than its optimal share of department facings that range from 80 to 61.6% based on alternative markup assumptions. © 1996 John Wiley & Sons, Inc.