IoT Solutions
In a day and age where physical retail competes fiercely with digital convenience, layout optimization has become more than just smart shelving—it’s a strategic imperative. And at the heart of this transformation is the evolving usability of a people counting system.
In 2025, store layout is no longer just a visual decision—it’s a data-driven science. People counting systems, once simple footfall trackers, now drive some of the most strategic decisions in retail. From improving customer flow to increasing sales per square foot, this shift is powered by AI, IoT and real-time heatmap analytics.
Did you know that retailers using foot traffic analytics have increased sales by up to 20% and reduced inventory costs by 30%? Yet, many still rely on guesswork when planning their store layouts.
What Is Layout Optimization for Retail Stores?
Retail store layout optimization involves designing and adjusting the physical layout of aisles, product displays, signage and checkouts to improve customer experience and sales. It aims to guide customer movement efficiently, highlight high-margin products and remove friction points that deter purchases. In 2025, this optimization is powered by rich behavioural data collected through in-store analytics, much like how e-commerce websites use heatmap website analytics to fine-tune user journeys.
The Role of People Counting System in Modern Retail (2023–2025)
Modern people counting solutions use infrared sensors, depth cameras and AI-powered vision systems to track customer movement anonymously. These insights help:
- Identify peak occupancy times for staffing and crowd control
- Understand common footpaths to resolve bottlenecks
- Track dwell times near key displays
- Measure conversion rates by comparing entries to purchases
- Manage queues in real time
This information is now central to store layout decisions. As Shopify notes, “Without data, layout changes are just guesses.”
Technologies Powering In-Store Analytics
1. Computer Vision & AI Cameras
Video-based people counting leads the market, holding 49% of share in 2024. These systems detect movement patterns and produce heatmaps showing hot and cold zones.
2. Wi-Fi/Bluetooth Tracking
By passively collecting signals from smartphones, retailers can measure frequency of visits, visit duration and path tracing—useful for recognizing loyal customers or high-value sections.
3. IoT and Edge Devices
Devices like Mapsted’s Boost sensors provide real-time heatmapping with low power and minimal setup. This is critical for large-format stores where manual observation is inefficient.
4. Artificial Intelligence
AI not only analyzes traffic flow but also distinguishes staff vs. customers, predicts peak traffic times and helps optimize marketing zones based on visitor profiles.
Heatmap Analysis for Customer Behaviour Insights
Heatmaps visualize movement density using colour gradients. Red and orange indicate high activity, while green and blue show underutilized space.
These are used to:
- Spot ignored vs. attractive product zones
- Validate or rethink the positioning of high-margin items
- Discover unintended shortcuts that skip key areas
Case in point: Coca-Cola used heatmaps to relocate displays from low-traffic to high-traffic spots and improved conversions significantly.
Practical Applications of Foot Traffic Data
● Product Placement & Merchandising
Retailers now use people-counting data to move high-margin or impulse products into hot zones. Aisles with consistent traffic (e.g., dairy or checkout) are ideal for complementary product placement.
● Customer Flow & Congestion Management
If two popular categories are next to each other, it may create a bottleneck. People counting systems help visualize and fix such congestion through layout changes.
● Queue Management & Staffing
Real-time data can trigger staff deployment when queues build. Kroger reduced average checkout wait times from 4 minutes to under 30 seconds using such tech.
● Occupancy Management
Retailers still use people counting to manage safe capacities, optimize HVAC and lighting and even schedule appointments during peak hours.
● Layout Testing & Continuous Optimization
Retailers like Target and Walmart use A/B testing across branches. One version of the layout is trialled in 50 stores, compared with 50 others and rolled out if metrics show improvement.
Market Trends and Stats (2023–2025)
- In-store analytics market: $1.53B in 2024 → projected $5.2B by 2031 (CAGR ~18%).
- People counting systems: From $1.2B in 2024 → $2.1B by 2029
- AI adoption: 53% of major retailers now use AI for in-store optimization.
- ROI: Retailers using advanced analytics report a 15–20% increase in sales and up to 30% reduction in inventory costs.
Real-World Examples
- Kroger: Slashed wait times with queue analytics.
- Zara: Uses AI tools and sensor data to forecast trends, personalize in-store experiences with smart mirrors, and automate inventory pickup and stock management across stores.
- RetailNext + Sensormatic: In 2024, RetailNext integrates the analytics platforms, offering retailers a more unified view of in-store performance across foot traffic, merchandising, and staffing. This partnership highlights the growing demand for real-time, AI-driven insights to optimize layouts, manage peak hours and reduce operational inefficiencies.
Conclusion
People counting data has evolved into a cornerstone of modern retail strategy. It empowers stores to move from intuition-based design to data-backed decisions. From layout tweaks to large-scale remodels, it ensures every square foot delivers value. Retailers who invest in advanced in-store analytics platforms and real-time heatmapping tools—like Mapsted Flow—gain a measurable edge in foot traffic management, customer satisfaction and operational efficiency. In 2025, smart stores are optimized not just for aesthetics but for outcomes. And it all starts with counting people right.
If you found this blog helpful, please read our blog on What Is People Counting Technology? Everything You Need to Know in 2025 or watch our video on Discover Unparalleled Building Visibility with Real-Time Anonymous Heat Mapping to learn more.
Frequently Asked Questions
Q1. What is a people counting system and how does it work in retail?
Ans. A people counting system uses sensors, cameras and AI to anonymously track the number and behaviour of visitors in a retail space. It helps retailers optimize layouts, staffing and marketing strategies.
Q2. How do heatmap analytics help optimize store layouts?
Ans. Heatmaps show high and low-traffic areas in a store. Retailers use this data to improve product placement, eliminate dead zones and enhance shopper engagement.
Q3. What is the ROI of using retail analytics solutions like Mapsted Flow?
Ans. Retailers using in-store analytics tools report 15–20% sales boosts and significant cost savings, including up to 30% reductions in inventory and staffing inefficiencies.
Q4. Is occupancy management still relevant post-pandemic?
Ans. Yes. Real-time occupancy monitoring helps retailers manage crowd control, optimize layout usage and enhance in-store safety and customer experience.
