How Do I: Increase Shelf Space?
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- Date Submitted: 11/10/2014 03:39 PM
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How do I: Increase shelf space?
Need to increase shelf space to grow the business but not sure how?
Once you have secured and are successfully supplying a listing, targeting growth through increased shelf space is a good strategy. However, space is always at a premium and success will depend on a number of factors.
This guide outlines the key elements to consider and potential strategies to gain space.
Space is a premium commodity in any retail outlet and buyers are charged with achieving the highest revenue return on their shelf footage: therefore, any decision to increase the space given to a product or supplier will have to be carefully considered.
The onus is on the supplier to present a convincing case as to what additional revenue the retailer could achieve. The last few decades have seen a number of models emerge as means of quantifying or developing space efficiency e.g. DPP – direct product profitability or Category Management. Each retailer has their own preferred methods and procedures.
However, the core principle remains essentially the same – space needs to deliver profits and so must be allocated and managed to generate the highest return.
BENEFITS
Increasing shelf space can provide many business benefits, including:
Increasing sales.
Developing company penetration in a current retailer.
Increasing influence within the retail account.
Taking sector share.
Developing new products or line extensions.
GETTING STARTED
Start by planning your approach. The strategy should be developed within the account planning process and may be presented to the buyer either as part of an annual negotiation or at an appropriate time during the year. The planning should take some time before you even speak to the buyer about the possibility of increasing shelf space. In general, assume a “we have no additional space” response as the starting position. The key elements you should consider at this stage include:
Retail strategy: any...
Need to increase shelf space to grow the business but not sure how?
Once you have secured and are successfully supplying a listing, targeting growth through increased shelf space is a good strategy. However, space is always at a premium and success will depend on a number of factors.
This guide outlines the key elements to consider and potential strategies to gain space.
Space is a premium commodity in any retail outlet and buyers are charged with achieving the highest revenue return on their shelf footage: therefore, any decision to increase the space given to a product or supplier will have to be carefully considered.
The onus is on the supplier to present a convincing case as to what additional revenue the retailer could achieve. The last few decades have seen a number of models emerge as means of quantifying or developing space efficiency e.g. DPP – direct product profitability or Category Management. Each retailer has their own preferred methods and procedures.
However, the core principle remains essentially the same – space needs to deliver profits and so must be allocated and managed to generate the highest return.
BENEFITS
Increasing shelf space can provide many business benefits, including:
Increasing sales.
Developing company penetration in a current retailer.
Increasing influence within the retail account.
Taking sector share.
Developing new products or line extensions.
GETTING STARTED
Start by planning your approach. The strategy should be developed within the account planning process and may be presented to the buyer either as part of an annual negotiation or at an appropriate time during the year. The planning should take some time before you even speak to the buyer about the possibility of increasing shelf space. In general, assume a “we have no additional space” response as the starting position. The key elements you should consider at this stage include:
Retail strategy: any...