The battle for the shelf is also the battle for the consumer's wallet. Some of the stress noted in this The Wall Street Journal article is normal, but the current retail and shopping environment is anything but normal. Consumers are being more selective based on inflation and economic uncertainty. Retailers are emphasizing private brands to respond to consumers price sensitivity and to pursue additional basket share. Both retailers and brands are curating their assortments to help manage inventory, overall as well as at the store level. We’ve certainly noticed an uptick in interest for process improvements and solutions to support the stress points discussed, including forecasting, assortment planning, pricing, and overall inventory management. What else are you seeing in the market, in stores, and with consumers? #retail #assortment #pricing The Parker Avery Group Robert Kaufman Sam Iosevich Amanda Decker -Astrologo
I'm going to posit something a bit different...the "battle for the shelf" can be won, if the size of the Shelf - ie, the Size of the Store - shrinks. We've all seen the rise of Small Footprint Grocery Stores. From Bodegas in 1900, to Trader Joe's in 1967, to Aldi, to Lidl, etc. ALL of these Stores have less than 5,000 SKU's. Selection is meticulously curated; "choice" is minimized - as in - Large Grocery Retailers have a half a dozen varieties of Ketchup, a dozen varieties of Mustard, and more. Small Footprint Stores have Ketchup, Mustard, and Spicy Mustard. You won't find the latest "this that and the other" on these Store Shelves. Instead, you will find what you need. Private Label is a "staple" (pardon the pun) in these Stores. Price is key. Selection is not. Location is key as well - you can't park a 130,000 Square Foot H-E-B (yes, I'm in Texas) just anywhere. But you can park a Small Footprint Store in a Strip Center. As for the Larger Stores (and yes, I like H-E-B), Category Managers spend hours with their Business Analytics Counterparts, evaluating Performance, reviewing New Brands and Items, and "stressing" over what to do. All the while, Trader Joe's is going on sixty years, and shows no sign of slowing down.
“Empty space pays the same rent as full space “
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4moClay Parnell You make an excellent point on what drives me “NUTS ” in retail today. Empty Shelves and Wasted End Caps, probably my post for tomorrow! “Epidemic” Thanks for the push!