Home' Convenience and Impulse Retailing : February March 2014 Contents February / March 2014 | C&I | www.c-store.com.au
C&I is pleased to welcome Craig Matthews as a new
columist. Craig is the Founder and Director Client Services
of Alcamat Pty Ltd - a proven retail business development
leader with extensive experience within the convenience
and fast moving consumer goods (FMCG) channel.
As a member of the Australasian Association of Convenience
Stores (AACS) and a columnist for the C&I Magazine,
Craig has valuable skills in all aspects of the FMCG
industry, providing you with a unique understanding
and insight of the retail market from all angles.
Following a successful career in convenience Craig formed
Alcamat to provide independent retail service and support
to independent operators and manufacturers who needed
retail experience on a contract basis. Craig has been
successful in introducing new retail offers and restructuring
existing retail formats for the Australian convenience market,
resulting in significant network and volume growth.
Craig was responsible for the initial introduction of BP 2Go into
the Australian marketplace and more recently was responsible
for the re-establishment of the Lucky 7 banner for Metcash.
His success in this field has also lead to many of these banners
becoming the fastest growing accounts within a number of FMCG
companies, resulting in increased investment and trade spend.
Craig dedicates his efforts to helping partners address their
needs, establish what they wish to achieve, identify their
challenges and help them realise their goals and objectives.
Well respected within the industry, Craig has built strong rapport
with many industry professionals over his 30 year career, working
with a number of national and global leaders in retail such as
Coles, BP Australia, British American Tobacco, UCB, and Metcash.
For more information contact Alcamat Pty Ltd,
PO Box 6483 Baulkham Hills BC, Baulkham Hills
NSW 2153 or email: email@example.com
Craig Matthews, Founder and Director Client Services, Alcamat Pty Ltd
ASK YOURSELF THIS QUESTION. IF YOU
WENT INTO YOUR LOCAL
supermarket to do your shopping,
and none of the products on the shelf had a
price ticket, would you shop there again?
If you are being completely honest with
yourself, then the answer would be no! So the
next obvious question is....if YOU would not
shop in a store with no price tickets, why would
you expect this of your own customers?
If you are one of these retailers, then I
would suggest that you are loosing bet ween
10-15% in lost sales oppor tunities. Think about
this for a minute and you will see why.
In the latest AACS State of the Industry
Report 2012 the average spend in a convenience
store is currently $10.06 and the average items
purchased is two. If I am a customer in your
store and I want to buy two items and I only
have $10 in my hand, and you cannot tell
me what I am expected to pay before I reach
the counter, I will do one of three things.
1. I will walk out of your store.
2. I will only purchase one of the
items I planned to buy.
3. I will trade down to a smaller pack size.
The act of not displaying price on shelf is actually
deterring your customers from spending more
with you. Often it is the promotional products
in many of these stores that have the best sales
performance, and while this is obviously due to
the better pricing, it can also be argued that these
performances are also a result of these items being
the only products that are adver tised in-store.
In the same AACS survey it was highlighted
that over the past t welve months promotional
penetration was up 10%, accounting for 24.3% of
all products purchased in a convenience store.
From an operational point of view, shelf tickets
assist in correct shelf maintenance and planogram
integrity, as the act of having a shelf ticket to the
left of the product ensures that you always know
what product goes in what space even when it is
out of stock. Quite often when a store is relayed
for the first time and the operator fails to use a
shelf ticketing system to indicate where a product
should go, you will see a gradual decline in sales
over time and a lift in stock weight. This is
because over time the better products sell out
and you are left with the slower sellers which
will eventually choke your cash flow.
By not displaying price on shelf, you
are not only limiting the sales potential
of your store, but you are also limiting the
performance of the products on shelf, which can
lead to poor ranging decisions, lower margins
and cash flow issues for your business.
Personally, I like to think of the shelf ticket as your
silent salesman. When you think about all the
money that we invest in up-sell programs, staff
training and customer ser vice, which are all ver y
impor tant programs, the simple shelf ticket can
do all of this for you without saying a single word.
It’s a fact that shoppers want better value out of
their shopping experience, so how can you convey
this to your customers if you do not have these
basic retail practices in your store. Having a better
price on a product is lost if you are not conveying
this through proper shelf maintenance programs.
The best range, the best promotions and the
highest store standards have become the minimum
from which we all now compete, so when it comes
to hiding the price of a product in your store from
your valued customers, who are you fooling?
Who are you
The act of not displaying price
on shelf is actually deterring your
customers from spending...
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