1 – 1 > 0: Growing the Pie by Reallocating Shelf Space to Small Brands

We examine whether reallocating shelf space to smaller brands enhances total category sales. During a three-month field experiment involving 20 supermarket stores in Arkansas (10 treatment and 10 control stores), we increased shelf facings for smaller brands in treatment stores and reduced facings for larger brands, while maintaining the total shelf space constant. A difference-in-differences analysis reveals that increasing facings for smaller brands significantly boosts total category sales, with an average increase of 960 ounces per week during the intervention. Notably, sales remained elevated by 786 ounces per week after shelf facings reverted to the original level, indicating a persistent effect. Furthermore, smaller brands experienced a stronger sales response to increased facings than larger brands, underscoring the role of brand size in moderating the impact of shelf visibility. These findings challenge conventional retail strategies and offer actionable insights for optimizing shelf space allocation to drive category growth.