Fiction Redo? But How?

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I’ve been surveying students since the start of the school year about re-shelving fiction according to genre, and everyone seems to agree that we should go for it. I think we should start by relabeling books, using vivid genre labels, before we actually move books around, just in case we have an overabundance of “mixed genre” books in our collection. No matter what, we’ll need to start by choosing a selection of genres to label! If there are too many, it might get confusing. Here’s what I’m thinking:
Sci-Fi
Fantasy
Mystery
Historical Fiction
Realistic Fiction
Humor
..but then there’s Chick Lit, Adventure, and Horror? I need your help! How many should we have and what should they be? What’s your favorite Fiction genre? Is it included in this list?