At the shelf, a promotion is measured on two tracks: whether the promotion was executed correctly, and what the shelf space it occupies returns.
Execution at the shelf
Promotion accuracy is one of the measures store teams are evaluated on, alongside planogram compliance and shelf availability 1. Where those three are used as evaluation criteria, availability becomes an enforced performance metric rather than a suggestion 1. Execution measurement also depends on knowing the physical footprint involved, since product is measured according to the space it occupies on the shelf 2. A promotional case can change that footprint when the retailer prepares it for display: the outer packaging is raised and the flap is drawn forward at the bottom, so the display form differs from the case as supplied 2.
Return on the shelf space
Retailers work to optimize contribution margin per sqm of shelf space, and that figure is achieved through velocity, price, gross margin, shrinkage and allocated shelf space 3. Those five components are the variables a promotion moves, which makes contribution margin per sqm the frame in which shelf-level promotion performance is judged 3.
What the promotion is expected to do
Promotions inform customers about the products and offers available, and they create a sense of urgency or exclusivity that can drive sales 4. In-store displays supplement the shelf with additional supply to support promotions and price reductions, which drives quantity demanded among customers 4. Digital displays placed right at the shelf educate shoppers with enhanced product information and drive higher conversions with timely promotions 5.