Optimizing Inventory Planning through Space Management in Fashion UMKM Retail Stores

Abstract

This study will analyze the use of Space Management by micro, small and medium enterprises (MSMEs) in Indonesia and its impact on consumer shopping experiences, optimizing store space usage, and enhancing sales performance. Improving customer service and sales is crucial in today's highly competitive business environment. Providing an excellent shopping experience can lead to increased sales, enhanced reputation, and customer loyalty. One effective tool for achieving this is Space Management, a method within the fields of Retail and Merchandising that involves organizing and optimizing store space to enhance consumer shopping experiences and boost sales performance. The research employs a descriptive quantitative method focused on financial aspects, starting with the calculation of margin mix from the merchandise collection for the store. This is followed by determining the display composition with the aid of property displays within the realm of visual merchandising. The inventory display calculations begin with establishing sales planning through sales projections, average sales, and break-even point (BEP) for each month, leading to the development of an Inventory Plan. This plan will be divided according to Product Composition that aligns with consumer shopping preferences, considering item style, seasonal events, and consumer choices. The research is conducted as part of a student project in the Retail and Merchandising class to understand how certain items become particularly dominant in consumer shopping experiences during specific events and seasons, resulting in a total inventory display that exceeds normal levels. The findings reveal that the jacket category accounted for 94.9% of the total inventory displayed, while the bottom category followed with 79.2%. In contrast, the top category ranked fourth, with only 57.1% of the total inventory displayed. This research indicates that implementing Space Management to optimize inventory planning in stores can be a highly effective strategy for enhancing customer satisfaction in shopping experiences and improving sales performance in retail MSMEs in Indonesia.