Proper shelf management is critical for retail stores that want to grow. When it comes to growing sales, retailers and their suppliers must pay very close attention to how their shelves are organized. Consider that according to some surveys, shoppers make half of their buying decisions when standing in front of your shelves. Never has what you put on a shelf mattered more.
For smart stores, proper shelf management should be imperative. While standard strategies like slotting fees are still important, new methodologies provide more data and change the paradigm within your aisles. This is the way to create a competitive advantage for retailers and partners. Consider these factors when you think about the importance of shelf management.
1. Did you know that OEMs in the United States offer up to $100 billion annually in promotions? Now consider that retailers only spend a collective $300 million yearly on shelf management. And yet shelf management accounts for well over half of all retail sales and 85% of all profits. While promotions are important, they are not moving the needle as much when compared to proper shelf management.
2. The grocery industry constantly tries to squeeze more money out of promotions, when “fixing the shelf” is actually the answer. Most stores that address shelf problems see their sales lift on average by 6%.
3. Common buying decisions happen in the store, where shoppers decide on spices, seasonings meats, candy, and more.
Here are some quick tips to ensure your shelf stays fresh without overdoing it. First, if you sell a private brand, don’t give it too much shelf space. Many private label brands are over-spaced on average, which can adversely affect productivity and out-of-stocks. Also, think about the center and perimeter of our store. Many stores are expanding their perimeter space while shrinking their core.
Finally, consider an eCommerce offering. Many stores adapted to offer delivery options and embraced online offerings. Providing grocery pickup provides your shoppers with a new way to get their groceries. It saves them on cash for the commute and enhances your product offerings. Happier shoppers buy more. In the end, the store benefits.
At UNFI Professional Services, we specialize in helping stores properly organize their shelves and display their products for maximum sales. We have programs customized specifically for you to help you plan the flow of your store and optimally execute on the shelf. We offer everything from floor planning to schematics. Contact us today to learn more!
