Return on Space
Return on Space (ROS) is a retail measurement that shows how well a store is using its available space to make money. It's similar to Return on Investment (ROI), but specifically for retail floor space. Store managers and merchandisers use this to decide which products should get more shelf space and where to place them. For example, if a small product makes a lot of money, it might deserve more prominent shelf space than a larger item that sells less. Think of it like deciding how to arrange furniture in a room to make the best use of space, but for store products with profit in mind.
Examples in Resumes
Improved Return on Space by 25% through strategic product placement and store layout optimization
Led store redesign project resulting in 40% higher Return on Space metrics
Analyzed ROS and Return on Space data to optimize merchandise placement across 12 store locations
Typical job title: "Retail Space Planners"
Also try searching for:
Where to Find Retail Space Planners
Professional Networks
Industry Resources
Example Interview Questions
Senior Level Questions
Q: How would you approach improving return on space across multiple store locations with different layouts?
Expected Answer: A strong answer should discuss analyzing sales data per square foot, considering local market differences, using planogram software, and implementing testing strategies before rolling out changes across all stores.
Q: Tell me about a time when you had to balance brand presentation requirements with return on space goals.
Expected Answer: Look for examples of negotiating with brands, creative space solutions, and maintaining both profitability and brand integrity through smart space allocation.
Mid Level Questions
Q: How do you measure the success of a space optimization project?
Expected Answer: Should mention metrics like sales per square foot, inventory turnover, category performance comparisons before and after changes, and customer feedback.
Q: What factors do you consider when allocating shelf space to products?
Expected Answer: Should discuss product margins, sales velocity, seasonal trends, competitor analysis, and customer shopping patterns.
Junior Level Questions
Q: What is return on space and why is it important in retail?
Expected Answer: Should explain that it measures how effectively retail space is being used to generate sales and profits, with basic understanding of how shelf placement affects sales.
Q: How do you read and interpret basic space performance reports?
Expected Answer: Should demonstrate understanding of basic metrics like sales per square foot, inventory turns, and ability to identify underperforming areas.
Experience Level Indicators
Junior (0-2 years)
- Basic understanding of retail space metrics
- Ability to read planograms
- Knowledge of basic merchandising principles
- Understanding of product placement basics
Mid (2-5 years)
- Space planning software proficiency
- Category management experience
- Store layout optimization
- Sales data analysis
Senior (5+ years)
- Multi-store space optimization
- Strategic planning and implementation
- Team leadership and training
- Advanced retail analytics
Red Flags to Watch For
- No understanding of basic retail metrics
- Lack of experience with space planning software
- Unable to read or interpret sales data
- No knowledge of planogram basics
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