Sales can be hard to come by so no retailer wants to needlessly lose them.
However when stores stock tens of thousands of items, employ hundreds of staff, well as having hundreds of thousands of shoppers every month, there will always be operational errors, and these can be expensive.
In this first example item, the buyer bought it, the supply chain delivered it, the store staff filled up the shelf. Its right in there front of the customers eyes, but its underselling. In fact in the last week this item has undersold by 156 euros.
The store are completely unaware of this issue. However the sophisticated algorithms powering RETAILIGENCE X- RAY app are constantly comparing the sales of this item across multiple stores and an alert has been generated that the item is underselling.
The store person goes to the shelf, and checks what the problem is. It’s in stock, it seems to have enough space and be in the right place. But wait a minute what’s the price?
The price label is upside down. Customers cannot easily read the price, and many of them just don’t buy it.
Here’s another one, this time its much more visible.
With a huge range of televisions to choose from in store, as well as online, customers won’t stop to ask why the screen on this TV is not working. They will just move on and maybe an expensive sale has been lost.
RETAILIGENCE X-Ray app however is so tuned to the sensitive buying patterns of your customers that it spotted that something was wrong at the shelf edge, and the store staff would instantly recognise the issue and fix it.
“Retail is detail”, is an old adage but it’s as true today as it’s always been. Filling the shelves, taking care of the product display, and ensuring prices are correctly displayed are basic store operational activities and when they are wrong, sales leakage easily occurs.
RETAILIGENCE X-Ray app not only enables stores to fix the individual issues at the shelf edge, it tracks the recognition and resolution of the issues, and highlights where upskilling and improved compliance to retail processes is needed to fix the root causes.
Sometimes however a store might be following all their processes correctly, but still they are not achieving their sales potential.
In this example the RETAILIGENCE X-Ray app has alerted the store that these bulbs are significantly underselling. What can be the reason? They are in stock, in the right place, the prices are correct.
Here there are actually 2 reasons why these items are underselling.
- The category team have decided that these items should be displayed according to brand, so actually the same specification of bulb is displayed in multiple locations. Experience has shown that the customer’s first “need” is the type of bulb and not the brand. Whereas displaying the items according to brand may be simpler for the category team, it actually makes it confusing for the customer, who therefore cannot easily compare items between brands.
- The items have only one facing each. As they are small items any way it makes them more difficult for the customer to find. This causes an additional problem. The pins on which the items are displayed only hold maximum of 8 pieces. The relatively high rate of sale for these items indicates that more space (facings) are needed, otherwise the items will continuously run out of stock and need more regular replenishment.
In these cases the RETAILIGENCE X-Ray app highlights the need for the planogram team to adjust the way that these items are displayed.
If you would like to see how RETAILIGENCE X-Ray can work for you, please get in touch at email@example.com