Which type of allowance is provided to secure better shelf space or entry into stores?

The type of allowance provided to secure better shelf space or entry into stores is known as a slotting allowance. Retailers often receive slotting allowances from manufacturers or suppliers as a financial incentive to allocate prime shelf space for their products. This practice is common in the grocery and consumer goods industries, where shelf space is limited and competition for visibility is high.

Slotting allowances can help retailers manage the costs associated with bringing new products into their stores, including the investment in shelf space and the risk of stocking new items. By receiving such allowances, retailers are more likely to consider onboarding new products, thereby enabling manufacturers to gain better market access.

In contrast, rebates are typically aimed at the end customer to encourage purchases, cash allowances usually refer to discounts provided on bulk orders, and merchandising allowances are funds given to support retail promotional activities, rather than specifically to secure shelf space. Each of these alternatives serves different purposes in marketing and sales strategies, but it is the slotting allowance that directly addresses the need for prime positioning in retail environments.