Case Study A Shelfbucks Success Story
When retailers and CPG's win, we win, too. Here is our latest project that proves the revolution has begun ... and, it's successful.
In-store merchandising displays are critical to the success of CPGs and retailers, yet according to the A.R.E. I POPAI Compliance Study in 2015, only 40% ever make it to the store floor as planned. Interestingly, the same study showed that CPGs perceived their compliance rate of displays at closer to 70% - a large gap from the actual number.
There are many factors that lead to the problem of display execution. The continued growth of on-line shopping challenges sales and profits at traditional brick and mortar retailers. Stores must manage costs and drive sales. Labor can account for more than 10% of revenue and is one of the easiest expenses to control1. Merchants are under pressure to drive category sales and may plan more displays than can physically fit on the selling floor. CPGs encourage retailers to purchase displays in the hopes that they make it to the floor in place of their competition. This often leads to supply chain issues or clogged stock rooms - ultimately losing sales, wasting expenses and driving excess inventory. 1 A Display is a Terrible Thing to Waste, Examining P.O.P. Compliance Rates (2018), Shop! Association
Labor can account for more than 10% of revenue and is one of the easiest expenses to control.
In-store labor wants to do a great job to improve sales. However, with decreasing labor, increasing workload and complex supply chains, it is easy to understand how displays are missed in the stock room. A variety of studies have tracked our attention span and argue it is shrinking dramatically. We rely on a variety of tools including: smartphone reminders and to-do lists. In response, retailers are deploying electronic task management systems through tablets or smart phones to direct store employees to complete the most important tasks. When notified a successful display is in the stock room or in the wrong place, store employees rush the display to the correct location.
Shelfbucks has developed a solution to improve display execution. The platform provides retail store labor and district leadership with real-time data-driven alerts on the location of displays in their stores (not yet arrived/in stock room vs correct selling floor location). A tiny, low cost sensor is embedded into each display which communicates with small sensors installed at the retail store. Data is collected from each display, in every store, every day and delivered to all required parties to improve performance. Stores receive alerts when a display has reached their stock room but has not been placed on the selling floor by the scheduled date. The platform has already generated more real-time location data on display promotions than ever generated in the history of retail.
It is no surprise that sending timely data and alerts to store leadership improved display execution. On average, program execution grew over 20 percentage points, but many programs have seen an increase of 25 to 35 percentage points in execution when Shelfbucks is deployed on displays. Specifically, an OTC Tower in a major retailer only reached 41% execution by the program start date but increased 32 percentage points to 73% following alerts. Another OTC tower increased 24 percentage points to a total of 83% execution after alerts were sent. Similar results were seen in Personal Care where execution for a key endcap increased 48 percentage points from 29% to 77% after sending alerts. Beauty also saw increases with a critical hotspot improving execution 20 points to 71% after stores were sent alerts.
Display execution has been an on-going challenge to the retail and CPG industry for decades. Even the best managed stores and operators find planning, managing and executing a growing, profitable display program challenging. Fortunately, there is FINALLY a solution allowing retailers and CPGs to use automated technology to optimize each display, in every store, every day. These results are having a dramatic impact on execution – improving the 40% average by up to 25 to 30 percentage points.