GMROS Bays Calculator
Gross Margin Return On Space (GMROS) Bays Calculator Explained:
(a) What is this? This calculator helps you assess merchandise performance in a defined area of space.
(b) What does this tell me? The GP$ performance per "bay" of space. Typically this calculator is used to determine the performance of a category, within a store or group of stores. "Bays" are an industry standard term for space allocation often determined by the length of the shelves in a gondola or wall merchandising unit.
(c) Why should I use it? Normally you would use this calculator to determine whether the category space is correct or not. You can also use it to determine whether the different activities you undertake (price, promotions, service etc.) are effective or not.
(d) Caution: Be consistent with the size of the bays. For example, some might be 600mm shelves, some 900mm (or 3 or 4 feet bays). Because a category performs poorly, it does not mean you exit it as not all categories are strong performers. This is simply a calculator to help you make more informed decisions. Any changes or decisions made are at your risk.