merchandising-effectiveness-in-grocery

Merchandising Effectiveness in the Grocery Channel

SUMMARY


REIGNITE IN-STORE MERCHANDISING EFFECTIVENESS IN THE GROCERY CHANNEL

This report, part of the "The Changing Shape of the CPG Demand Curve" report series, dives into the impact COVID-19 has had on total food channel store display merchandising, as well as strategies to help manufacturers and retailers navigate the future of display in the next normal.

Observations:

  • In-store display space has been significantly reduced as retailers enable social distancing.
  • High COVID-19 demand categories such as bleach, soap/beauty and beverage alcohol are displacing traditional display categories such as cookies/crackers and candy.
  • Despite these shifts, contribution to sales from display has held steady vs. pre-COVID-19 and decreased only slightly vs. a year ago.
  • Sales with features have softened, not keeping pace with display despite no significant reduction in activity.

Opportunities:

  • As display space remains challenged, retailers and manufacturers will continue to refine merchandising strategies to maximize lift by aligning the metrics that matter across display product mix, size, location and number with new shopping patterns.
  • Continual evaluation will be required to ensure the "right" categories get display space – merchandising strategies that worked during peak stockpiling of mid-March and subsequent stock-up periods may no longer work as behavior evolves.
  • Ensuring all off-shelf merchandising efforts are in sync with weekly feature ad support will continue to be both a key goal and challenge.

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