march 17, 2023
How a grocery chain increased its dairy category assortment by 37%
This retail operates in a chain of more than 100 shops in the surrounding region. As is often the case, the shops vary in size and assortment. In early 2022, GreenShelf was introduced to bring the process of merchandise display management to the same standards and to show the efficiency of the service.
The company management decided to pilot several shops and two selected product groups: dairy products (internal company terminology) and meat gastronomy (own-produced products).
Sales and assortment were analysed. An audit of business processes from ordering to in-store pick-up and shelf display was carried out. A Realogram of the factual representation of goods on the shelf was prepared. In the course of the work it was found out the following:
Capacity of retail equipment for dairy products allows to deliver more shelves and increase assortment from 83 SKU to 114 SKU without significant investment. Eliminate the backlog of products not selling in such quantities. To fill the vacant space with new products in a growing product category.
Was 21/07/31 -4 shelves, 83 SKU, 11SNU
Became 22/08/09 -5 shelves, 114 SKUs, 15SNU
Other problems were also identified in the business processes of ordering, receiving and displaying goods. As is often the case when implementing a merchandising management system.
As a result, shelf space is 95% occupied, up from 80% previously. Revenue increased by 16%. As the practice of implementing the service in other companies shows. Simply by focusing on the display and controlling compliance with planograms, a noticeable increase in revenue of 9-13% is achieved.
In the meat deli of own-brand products, the implementation of the Planogram revealed a lack of shelf space to present the entire range of products. A more in-depth analysis highlighted the need to reconsider the need to produce some SKUs.
The introduction of Planogram in the Fresh category has increased revenue by 20%. This once again proves the importance of managing merchandise layouts using GreenShelf tools.
Sales of fish, fruit and vegetables increased by 20% after display
Block display of fruit, vegetables, fish, pickles, juices and drinks
