Not Selling Enough? Identify and fix root causes of Out of Stocks
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Transcript of Not Selling Enough? Identify and fix root causes of Out of Stocks
Not Selling Enough?Identify OOS Root Causes
OOS is a huge impediment to retail sales.
In-Store Execution is Broken at Most Retailers.
Why?
Retailers are busy.
Retailers are lean.
Only 3.7% have accurate fixture level POG Information.
Source: RIS News 2013
This at a time when store-specific POG’s and assortments are more important than ever.
And we know a 10% increase in POG Compliance will drive OOS
lower by 1%Source: Gruen & Corsten 2008
That 63% of stores still use spreadsheets for in-store execution is not helping.Source: RIS News 2013
Finally, most retailers don’t do well at measuring in-store
execution performance.Source: RIS News 2013
So what can you do about it?
Solving for Sales…
1. You’ve got to have feet on the street.
2. You’ve got to have technology to focus your field
team on high-velocity, strategically crucial, never-out
SKU’s.
3. You’ve got to have technology to make it easy to
collect and analyze what’s found in the field.
Now we go to work. When a field rep finds an OOS…
Specific Strategies…
Does the store have product? You may have a business case for more space, or may need more coverage in this store.
No product in the store? You may have a business case for
more safety stock, higher volume / more frequent
replenishment.
Is the POG wrong? Just fix it.
Is there poor item management? Fix your tags, holes, selling
environment.
Is there poor inventory management? Cycle Count and
fix the Perpetual Inventory accuracy.
So what’s the size of the prize? 76% of shoppers decide in the store, 55% make unplanned
purchases.Source: POPAI 2012
Is it worth the cost?
If you’re not on the shelf, your out of business.
Source: POPAI 2012
How do you find these issues, schedule them to be fixed, and
follow up to make sure they actually got fixed?
Fix root causes to win!
Start by Visit our academy by clicking this link or call us at 800-862-1497 to get started.
That’s why we developed