Shelf Space Strategy in Alcoholic Beverage Retail: Analyzing the Impact of Shelf Facings on Sales Performance and Consumer Behavior

The alcoholic beverage industry faces intense competition and regulatory constraints, making strategic shelf space management critical. This study investigates the impact of shelf facings on sales performance in the alcoholic beverage sector, focusing on how brand size moderates this relationship. The study collected data from a regional supermarket chain in Arkansas using a quantitative pretest-posttest control group design. It found that increasing shelf facings for smaller brands significantly enhances overall modular sales, with small brand sales persisting even after reverting to their original facings. Moreover, the analysis reveals that brand size significantly moderates the impact of shelf facings on brand sales, with larger brands experiencing a less pronounced benefit from additional facings compared to smaller brands. The research concludes that adopting a new perspective on shelf space allocation, particularly by strategically increasing facings for smaller brands, may improve overall sales performance in the alcoholic beverage industry. Although the study provides valuable insights, its regional focus and limited category scope suggest the need for further research to explore variations across different regions and alcoholic beverage categories.