At a recent Retail
Industry Council event a major topic of conversation was the future of retail
and what impacts e-commerce will have on bricks and mortar retail locations.
While e-commerce is resulting in major changes to the way we shop in some types
of retail, such as electronic stores, book stores, music stores and more, the
food industry at retail is unique.
When you are shopping
for food, you want to be able to touch and feel the produce you are buying,
feel the texture of baked goods, and thoroughly inspect your meats. These are
reasons that many consumers will continue to want to physically go to the
grocery store to purchase their foods. While there have been grocery services
around for years that enable you to buy online and have the food delivered to
your door, they haven’t managed to make an impact whatsoever in the way people
buy food.
This is why the
in-store experience that a customer receives continues to be so important to
the success of brands that sell their products at food retailers. It is also a
major reason why brands must ensure that they maintain some level of control
over in-store merchandising.
Leaving in-store
merchandising to the retailer is a dangerous plan because the consequences to
the brand can be significant.
Consumers are
creatures of habit, especially in the retail food industry. Once a consumer
gets hooked on a brand they will often add it to their grocery list to be
purchased week after week. When a consumer visits a store and suddenly the
brand that they love is not available because it is not on the shelf or has
been moved and they can't find it, many consumers will try another brand that
sells the same product. If they love the product, the original brand could lose
their customer’s loyalty altogether.
A brand’s success at a
retailer depends on its sales. Brands that sell more will be able to negotiate
better product placement and priority, so it is crucial that brands that are
not dominating their market space at a particular retailer hike up their socks.
Many brands are turning
to merchandising services to boost their sales at retail. Merchandising
services take the control of in-store merchandising away from the retailer and
empower the brand to have more control over their customers’ experiences, which
then results in increased sales. Merchandising services will go to all of the
retailers where the brand’s products are sold and ensure that products are
stocked and on the shelves and also ensure that if there is a product placement
issue that the brand is made aware of it immediately, rather than finding out
when seeing that sales have dropped at a particular retailer. Merchandising
companies also assume the role of setting up in-store displays and literally
become the brand’s ambassador at retail.
Brand’s
that want more control over their in-store merchandising are best served by
looking to retail merchandising services to ensure that customers are
always able to access them, and to ensure consistent profitability across the
retail stores where their products are sold.
For more information
about how you can take more control of your in-store merchandising and our
merchandising services, please contact Storesupport by calling 1 (877) 421-5081
or visit www.storesupport.ca.
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