Is CPG Dying in Canada? How to do Rightsizing the Right Way

Change is a constant factor in the retail landscape, and adapting to change is a critical component of any brand or retailer’s strategy. It seems as though many companies are making the move to smaller locations, downsizing and putting emphasis on online sales. This trend to downsize has had many impacts - not least of which is the continued competition, impact on brand loyalty and the impact on employees (lots of people are finding their jobs being downsized as well).

Canadian Grocer recently weighed in on the online grocery trend with their article “Get ready for online grocery’s rise.” According to the article, “Of Canada’s vast supermarket sales, only a drop in the bucket are online. Nevertheless, grocers and CPGs should start to plan their e-commerce strategy now or else get left behind as consumers start to fill their pantry from their computers and smartphones.”

Furthermore, according to Keith Anderson, vice-president of strategy and insight at Profitero, “By 2018, three per cent of CPG sales in Canada could be online, up from the current estimates of 0.5 to one per cent.” That is a major mark up!

Check out the full article here: http://www.canadiangrocer.com/top-stories/get-ready-for-online-grocerys-rise-in-canada-54240.

So what does this mean for retailers across the nation? Well, with the downsizing trend often comes lost loyalty, so you absolutely need to be sure that you are rightsizing!

What does rightsizing mean? Whether you are downsizing or upsizing (yes, while the trend seems to be downsizing, many other stores are upping their square footage rather than reducing it), if you do it correctly, you are rightsizing. This means keeping customer service levels high and staying on top of empty or messy shelves and employee to customer ratios.

Is CPG dying in Canada? Of course not. It is just changing. Chances are we won’t see the demise in our lifetime - we can always keep our fingers crossed just for good measure - but that doesn’t mean that we can keep doing things the way we’ve always done them.

The old saying adapt or die may not necessarily apply here, but when it comes to rightsizing, you always need to keep an eye on strategy.

For more about retail downsizing, upsizing, or as we like to call it, rightsizing, please call Storesupport today at 1-877-421-5081.

Retail Downsizing and Upsizing: Target Not the Only Store Making Changes in Canada

Earlier this year we spoke at length about Target Canada’s choice to pull the plug on its Canadian operations, and the many impacts this had for the brand. But Target isn’t the only company to be making changes within their organizational structure - a whole host of parent companies have made the decision to downsize in recent months. 

At the beginning of the year, several companies, including Sears, Mexx Canada, and Sony, announced plans to downsize. The latest in the long line of companies include the parent company for retailers Ricki’s, Bootlegger and Cleo. Back in March, Canadian Business had this to say: Ontario-based Comark Inc, “The company behind Ricki’s, Bootlegger and Cleo plans to close stores and cut jobs as part of a restructuring after obtaining court protection from creditors.”

You can check out the full article about this downsizing move here: 

http://www.canadianbusiness.com/business-news/rickis-bootlegger-cleo-fashion-stores-downsizing-under-court-protection/.

Does that mean the trend is just about downsizing? No. While some stores are making moves to decrease their footprint, others are increasing their square footage to meet rising demands. This includes those stores, such as Amazon, that are making the move to physical locations, having previously only sold online.

When it comes to rightsizing - whether you are downsizing or upsizing - there are few to things to keep in mind to mitigate any unforeseen consequences.  The right people support, a strategy for in-store set-up and planogram compliance can all make a big difference with regard to customer satisfaction and therefore brand loyalty and brand perspective.

Downsizing? Upsizing? When it comes to rightsizing, Storesupport can help. We can offer the tools that give you the ability to properly manage the process. Call us today at 1-877-421-5081.

Shrinking Your Store – Some Considerations for Retail Downsizing (or ‘Rightsizing’)

The impacts of online shopping are not news to the retail industry. Over the last few years, many stores have had to make significant overall changes brought on by web-savvy shoppers and their hunt for the best deal with just the click of a button. Retail downsizing, or rightsizing as we like to call it, has become a much more normal occurrence, especially for smaller bricks and mortar locations looking to stay relevant and deal with the onslaught of online competition.

Check out this recent release from Bloomberg Businessweek – “The Smart Way to Shrink Your Retail Store” - http://www.businessweek.com/articles/2014-05-09/the-smart-way-to-shrink-your-retail-store. In it, the author references the recent trend of retail downsizing: “Retail space isn’t what it used to be. More people are browsing and buying online. Stores can get products faster from manufacturers, so they don’t need as much space to warehouse inventory. Small businesses are thus moving to smaller storefronts to lower costs.” And the main piece of advice offer: have a plan!

Even in the CPG industry, where the competition is a bit less stifling, there has still been a push to deal with those big box franchises. And yes, retail downsizing has made its way here too. So, if changes in the online marketplace have necessitated a change in location, or rather a rightsizing of your current location, the best thing to do is develop a plan to ensure that the impact this transition has is as positive as possible.

How? Enlist the services of a company that can help you carry out this change without a hitch – one with the knowledge and experience to conduct a shift seamlessly, as well as the additional people support to maintain high levels of customer service during the move and avoid any pitfalls along the way.

For more about conducting a retail downsizing that won’t have any adverse effects, please contact Storesupport today by calling 1-877-421-5081.