Retailers decision-making criteria in shelf space allocation

Retailers are known to carry thousands of manufacturers' products. The allocation of shelf-space between different items or different brands in the same product category is a major decision for retailers, due to the very limited availability and the large number of products that need to be displayed. Several issues in the shelf space allocation criteria are identified and data is obtained from major retailers in Kata Kinabalu'. Qualitative method was used to identify the choosing criteria of products for shelf space allocation, with data derived from the inductive approach of key informant interviews. The findings reveal that the choosing criteria are much depends on price, products differentiation, profit and product quality. In allocating shelf space, retailers are concerned on historical sales and market share of products. We also suggested some strategic alternatives in shelf space management for future adoption.