Manufacturers often miss growth opportunities with their retailer through this one factor:
Their Brand's Range.
Shelf space has always been considered a key driver of sales and brand awareness - at least against competing brands.
With major Shopper behavior changes during the last 12 months, the importance of space productivity has been increasing drastically.
Retailers are reacting and adapting their own range quickly, based on shoppers' spending changes.
So here is the dilemma:
Shall a Brand maintain a long assortment tail with high risk of decreasing my brand's effectiveness and finally seeing my low selling SKUs - and space - cut by the retailer?
be proactive in cutting low selling SKUs to provide more space to my better selling SKUs?
Consider the cost of maintaining low selling SKUs on a shelf: Delivery, Returns, Activation costs...
On the other hand, being proactive on my Brand's Range delivers huge benefits:
• Additional space justified by additional sales
• Increased availability
• More flexibility to launch and try new items
1. The average number of SKU sold by day by branch of the category [sub-category] of the retailer (A) and the same for the Brand (B).
2. A comparison between the Brand's share of SKU (A) and its share of sales (B).
In both cases, when (A) > (B) it is usually a sign that range optimisation or activation is required. What decision will you take?
Retail shorts is a series of practical practice sharing Hypertrades could learn, capture, implement and monitor across the diversity of our Clients.
We hope it helps!
Hypertrade is a Retail Data Collaboration Platform that provides tech, data and continuous retail expert support to turn your teams into Champions.
From constantly changing prices, availability issues to continuously growing competition, we help teams take the right decision to develop winning category strategies
Promotion history, campaign analytics & promotion planning help teams deliver stronger promotions ROI
We connect shoppers & loyalty data to help Insights & Category Management Teams build compelling shoppers’ strategies
User friendly interface, interactive charts and tables create an intuitive & interactive platform that teams love
Internally with your own teams or externally with business partners, share insights and recommendations to establish a common language while maintaining your own segmentation
Whatever your data format, granularity level or source, deliver a seamless access to insights & recommendations with automated data ingestion, structuring & cleansing processes
Hypertrade is a retail tech company in Category Management and Shopper Behaviors Analytics. Manufacturers use our platform to manage their multi-retailer data sets and to automate their category management and sales analytics. Retailers use our platform to improve their Commercial offering, collaborate with their suppliers and Engage their Shoppers. Building on Sales, POS & Loyalty data, some of the things we fully automate are:
• Brand& Category Score card
• Brand automatic Diagnostics
• Range Optimization
• Promotion Planning & Forecasting
• Shoppers baskets analysis