Store remodeling: what impact on categories and merchandising?

In recent years, the retail industry has been undergoing a profound transformation, with stores increasingly focusing on services to attract and retain their customers. Retail brands are renovating their points of sale, modernizing spaces, and adding new high-value-added areas, such as beer cellars, premium wine sections, or specialized corners.

At the heart of this transformation is the store remodeling.

Store remodeling refers to the reorganization and modernization of an existing retail outlet in order to adapt it to new consumer expectations, brand standards, or market developments. It is therefore much more than just a fresh coat of paint: it is a strategic redesign that rethinks the layout, atmosphere, and sometimes even the sales area.

Beyond the aesthetic aspect, a remodeling can change the tier to which the store belongs, resulting in new merchandising rules to be followed.

Yet, store tiers play a crucial role in mass retail: they influence shelf space distribution, range depth, and display standards.

In this article, we will look at how a remodeling can influence a store's classification, modify its product placement, and create new opportunities or constraints for field sales teams.

What is store remodeling?

In concrete terms, store remodeling addresses various aspects of modernizing a point of sale. This can include:

• Rethinking the interior layout: customer flow, aisle positions, furniture, and selected materials...

• Updating decor and lighting

• Changing or optimizing store signage: panels, promotional displays, customer path assistance

• Installing new equipment: refrigerators, self-checkouts, modernizing or adding food sections, digital screens...

• Adapting merchandising to better showcase certain product categories.

Store remodeling often has a dual purpose. One is to improve the customer experience by offering more comfort and a clearer shopping journey, thereby encouraging repeat visits and building customer loyalty. The other is to optimize sales performance by increasing product visibility, improving flow, and thus increasing the average basket size.

Difference between renovation and resets

It is important not to confuse store remodeling with store renovation or a store reset.

Remodeling is a comprehensive reorganization of the store, with typical actions including a layout change, new furniture, updated shelves, redesigned lighting, and revised signage. For example, a supermarket that completely revises its customer journey, installs a new fresh section at the entrance, and updates the decor.

Store renovation, on the other hand, is a simple maintenance or upgrade of the existing infrastructure and layout. The objective is to fix wear and tear, meet standards, or give a quick facelift. For example, a supermarket redos its floors and repaints its walls without changing the layout of the aisles.

Finally, a store reset is the modification of the organization and placement of products on the shelf, according to merchandising rules and commercial objectives. This involves moving product categories, changing the order of gondolas, or revising aisle widths. The goal is to optimize product visibility and influence purchases. For example, a supermarket that puts high-margin products at eye level or groups complementary items together.

In summary:

• Remodeling = comprehensive redesign + modernization (look and layout)

• Renovation = maintenance and refreshing

• Reset = reorganization of products on shelves

Understanding store tiers

In mass retail, tiers refer to groups of stores classified according to the number of references (store assortment) that can be ordered by the store for a product range. It varies among stores based on the point of sale format (hyper, super, convenience...), the sales area, the size of the section, or the commercial potential. Also called modulation or typology, each tier corresponds to an assortment.

Discover in detail how store tiers work in supermarkets.

Store tiers influence:

• the applied merchandising

• the available product range

• the space and shelving allocated to each category

• the frequency of visits by sales representatives

The impact of store tiers on merchandising

The impact of store tiers on merchandising is direct, since they determine the placement rules, the allocated space, and the range depth.

Planograms

Each tier has its own planograms defined by the brand. In a hypermarket of over 5,000 m², the planogram is denser, with more references and a more complete representation. Conversely, a convenience store will apply a simplified planogram, adapted to a limited space.

The placement of products (height, position on the shelf, number of facings) therefore varies according to the available space and shelving.

For example, in a hypermarket, a category might occupy three to four complete shelves, whereas it might only occupy one in a convenience store.

Share of shelf

The tier directly determines the share of shelf allocated to each category or brand. The higher the tier, the larger the shelf space, offering better opportunities for exposure and sales. In lower tiers, space is more limited, and every inch counts.

Product range

Tiers determine the range depth (number of items per category) and range width (number of categories present). The higher the tier, the more extensive the mandatory assortment will be.

In hypermarkets, you can find the complete range (entry-level, core market, premium, innovations). In convenience stores, generally only core market and high-turnover products are stocked.

Do not forget picking, which is yet another opportunity to develop your sell-in.

The direct link between remodeling and tiers

A store remodeling is never neutral for point-of-sale management. Depending on its scale, it can:

• upgrade the store to a higher tier.

• profoundly modify the merchandising rules applied to the current tier.

When a remodeling leads to a change in tier

When a store is expanded, it can shift to a higher tier, with all the implications that entails. For example, an Intermarché supermarket of 3,000 m² (tier SG) adds 800 m² of surface and becomes a point of sale of 3,800 m² (tier HM).

This results in applying new planograms specific to the higher tier, expanding the range and the mandatory assortment with additional references to stock, and therefore, for brands, a potential increase in their share of shelf (if successfully negotiated).

When a remodeling modifies the layout without changing the tier

Even if the total surface area remains the same, a remodeling can redistribute spaces and transform store traffic flow. For example, a point of sale keeps its 2,000 m², but moves the fresh section to the entrance, installs taller shelves, and expands the beverage area.

This results in moving categories to new areas with a planogram adjustment, which can increase or reduce the visibility of the brands affected by this change. This change can be a strategic placement opportunity for brands, especially in hot zones or end caps, and will therefore require a shift in actions from the sales representative responsible for that store.

What implications for sales representatives?

A remodeling, whether it leads to a tier change or not, inevitably alters the commercial environment of a point of sale. For a sales representative, this is a strategic moment where vigilance, responsiveness, and negotiation can make all the difference.

Adapt visit planning

The reopening period is crucial.

Go on-site quickly to:

• Monitor the actual display compared to the new planograms.

• Quickly identify any out-of-stock items on the shelves.

• Detect untapped opportunities (empty end caps, secondary placements).

Ideally, schedule your visit on the third day after the reopening.

On the first day, the department manager is often very busy and focused on final adjustments; your visit might be perceived as intrusive. On the other hand, waiting too long increases the risk that your competitors will secure the best spots. It is therefore necessary to find the right balance.

Negotiate additional shelf space

Remodeling provides an ideal window of opportunity to renegotiate space with the department manager or store manager, because:

• Shelving and aisles are often reorganized, sometimes leaving free areas.

• Retailers want to fill the newly remodeled spaces quickly.

• Range extensions or innovations can be integrated more easily in this context.

As soon as you know a store is going to be remodeled, prepare your pitch in advance:

• Present your additional items as a solution to enrich the shelf offering.

• Rely on concrete data: sales figures, market share, observed turnover in stores of the same tier as the future configuration.

• Show that your range can help boost the category right from the reopening.

Ensure restocking follow-up

Anticipating logistics is essential. As soon as you get the store's agreement or order, integrate it immediately into your planning and trigger the necessary actions to guarantee proper delivery for the reopening.

Despite this anticipation, a remodeling can sometimes lead to unexpected issues. The role of the sales representative is therefore to:

• Verify the physical presence of each item on the shelf.

• Prompt restocking if necessary.

• Ensure that products and new releases are well-positioned and promoted.

Best practices for field teams

• Gather information in advance: know the nature and scope of the remodeling (expansion, simple reorganization, new furniture).

• Plan a quick visit upon reopening to react before the competition.

• Monitor the implementation of the new planograms and correct discrepancies if possible.

• Seize negotiation opportunities to gain space or secure a strategic placement.

A remodeling is a key moment where a sales representative can not only preserve their gains but also improve product visibility and strengthen their position on the shelf... provided they are ready, reactive, and proactive.