FEATURE: MERCHANDISING & POS
INVESTMENT IN TECH NOW CRITICAL TO RETAIL IN 2024 AS INFLATION CONTINUES TO FALL
Trade promotions driving down prices to compete for cash-strapped shoppers could cause retailer-supplier acrimony down the line without process automation, warns Retail Express.
T
he British Retail Consortium (BRC) cited fierce competition for cash-strapped shoppers among
retailers in February as one of the main reasons for the BRC-Nielsen Shop Price Index showing its lowest reading since March 2022. However, Retail Express SVP warns of retailer-supplier acrimony ahead unless AI and automation are used to transform legacy practices. As most retailers operate on a very thin margin, trade promotion efficiency is an important driver of their financial sustainability. Edward Betts, SVP
General
Manager - Retail Lead Europe, Retail Express explains: “Supermarkets are doing all they can to keep prices down and help people manage their budgets. We have started to see the main retailers launch price- match schemes with the discounters; this competition is accelerating promotions activity with consumer spending on offers increasing by 4% in February. But, we also know that
70 cents per every dollar invested in trade promotion are lost and that circa 60% of trade promotion investments do not break even. Retail systems desperately need an upgrade.” With a heavy reliance on legacy infrastructure, manual processes and siloed approaches, many retailers find that the trade promotions established with suppliers are often unprofitable. Successful promotional activity demands the ability to discover and act upon new category opportunities, the foresight to predict the position of the market when supplier deals come into effect, and the accuracy to ensure that all pieces are in place when promotions land - all while maintaining good relationships with suppliers.
Against the backdrop of a YouGov
survey, which found that inflationary pressure has led to strained retailer- supplier relationships, retailers must go beyond the unreliable nature of spreadsheets, emails and phone calls and embrace the power of AI and process automation. Investing now, as liquidity improves, in
enhancements to crucial communication and coordination between retailers and suppliers will strengthen this most important of relationships at a time when unlocking value, maximising ROI and gaining a significant advantage over competitors has never been more important. In response, Retail
Express has announced a whitepaper to help retailers operate smarter as they plan for 2024. While merchandising practices continue to grow in complexity, the paper reasons that greater investment is urgently needed in the technology platforms that underpin supplier negotiation and ultimately improve trade funds, reduce collection costs and drive better promotional ROI. The whitepaper explains how the drive towards digital transformation is ushering in a new dawn of algorithmic retailing - the use of AI
to drive automation and deliver real- time insights that will free up staff time to focus on tasks that deliver improvement and innovation.
Download the free Retail Express whitepaper to learn more from: https://
campaign.retailexpress.com/ suppliercolab0922
This new merchandising display from Apta is designed to offer multiple benefits for both retailers and consumers. By recognising shopper psychology, Apta has presented three complementary product groups in one handy location. Consumers can ‘buy the look’ or simply feel more confident in their purchase through the power of add-on sales, simple how-to advice and inspirational visuals adorning the supporting weather-proof corex signage. Gone are the days when shoppers ‘just buy a pot’. Instead, they are buying a concept that, foolproof in its approach, helps to create a new generation of gardeners, whilst enabling plants to thrive with the correct care and attention. At just 4m2, Apta’s latest merchandiser packs a punch. With the ability to be stocked with Apta pots, including the option to include a multitude of sizes, styles and colourways, plus handy packs of Kelkay horticulture grits and sands, the display is already offering significant value. Add in the fact that plants are also accommodated, and it quickly becomes a highly cost- effective solution. From one stand, consumers can shop across three product categories; something so few other merchandisers can boast. Consumer favourites, seasonal bestsellers, or even those hard-to-sell or unusual plants, can all find their home on Apta’s Planting Bench. The joy of
18 DIY WEEK MARCH 2024
PLANTING BENCH OFFERS A NEW CONCEPT IN CROSS-CATEGORY MERCHANDISING what can
ordinated,
mpulse sales, turing the
ctor at ting with a about signed to
this merchandising display is the flexibility of what can be showcased. Plants and pots can be co-ordinated, seasonal displays can be created to drive impulse sales, or why not showcase trend-led displays featuring the ‘hot’ colours, styles, and foliage? Caroline Elliott, Product & Marketing Director at the AMES Companies says: “The Apta Planting Bench has been created to provide retailers with a functioning merchandising display. This isn’t about just sitting and looking pretty, instead it’s designed to work hard and offer flexibility that drives sales throughout the year. The option to stock multiple products with varying price points means there is a sales configuration for all types of shoppers.”
To stay up to date with all things Apta, including accessing the dedicated trade portal where you will find a comprehensive image library, POS guide and Product Database alongside the 2024 catalogue, please visit
www.apta.co.uk. Further details about the AMES Companies are available at
www.ames-uk.com
www.diyweek.net
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40
