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For a leading global CPG firm, product innovation is not an add-on, but a fundamental pillar for sustained growth. With the fast-changing retail landscape, getting the right amount of facings on the store shelf becomes increasingly critical for innovation success, yet the client lacked the necessary knowledge in quantifying facings-to-sales relationships. They approached IRI with questions like “What is the best number of facings for new brand innovations in category X?” and “What is the lift at the different levels of facings for each innovation type?”
With its robust store-week level POS data, plus in-store collected product facings data as input, IRI applied custom modeling techniques to reveal the sales lift value of each incremental facing. Different innovation types (e.g., new brand launches, new forms, etc.) and categories were analyzed separately, leading to five product groups each with its own findings. IRI found that most stores had fewer facings than optimal levels and moving these stores’ facings to optimal levels would generate a positive sales impact ranging from 6% to 22%.
Based on actual 52-week data, IRI estimated that an annual sales lift of more than $16 million across the five product groups could be gained if every grocery store had its facings optimized for these products. This finding generated visible excitement by the client and a strategy to move forward. In a market in which facings, and shelf space in general, are under fierce competition, knowing each facing’s worth with confidence is a high-value insight that can then be activated.
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