A cross-category analysis of shelf-space allocation, product variety, and retail margins

Retailers' allocation of shelf space as well as the breadth of variety offered varies across categories. Many researchers have developed heuristics for determining what retailers should do with regard to these decisions. We explore how these constructs are actually related in practice. We utilize data obtained from Marsh Supermarkets, a large Indianapolis-based grocery retailer, to explore the relationships between these variables. The results of this analysis are a set of raw facts concerning the relationship between some of grocery retailers' more important category-level decisions.