Design your store denser to make shoppers buy more variety

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If you are running a store, you need to decide how many different types of products to stock. Stocking variety of products can be a good idea if consumers to buy more items, but it also incurs additional transactional costs. How can you decide how much variety to stock to maximize profits?
Recent research shows that when people are in tight environments — such as narrow aisles in a supermarket — then they are more likely to buy a greater variety of products. For example, if you went to a supermarket to buy plain yogurt and are shopping in a wide aisle, you will just buy plain yogurt and ignore all other varieties of yogurt. But if you are in a narrower aisle, you will not only buy plain yogurt but also vanilla yogurt, strawberry yogurt, and so on.
What does it mean for your store? If you are in a densely populated city like Tokyo, where people are used to tight spaces, stocking a greater diversity of products in the narrower aisles of your store would likely increase profits — people tend to buy more different types of items in tight spaces. If you are in a more sparsely populated city like Miami, where people are used to big spaces, stocking primarily the most popular products in your wide aisles would be the best idea.

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