Market Insights

Retail Case: Why Location Data is important in driving retail execution excellence?

by Jimmy Ho ¬ 01/08/2018

Only looking at the aggregated data, it is hard to identify locations with specific execution issues for quick fixes. It takes you long and at the same time costs you a lot to find out the problem and fix it. If we just focus on the core stores/ part of the stores, it will undoubtedly limit our vision – easily missing the untapped sales opportunity. Location data is as important as overall sales trend data, as brand performance sometimes could be a big surprise across time if you have little or even no information on no. of SKU and spacing information by brand at location level. Here are some surprising results from a recent nationwide chocolate audit in Hong Kong.

(Nationwide Chocolate Audit in Hong Kong for 5 major festive chocolate brands, covering multi channels for 112 stores: Chain Supermarkets (ParknShop, Wellcome & Vanguard), Chain Convenience Stores (7-11 & Circle K), Chain Drug Stores (Mannings & Watsons), Independent Drug Stores and Emerging Channels (759 Store, Bestmart360 & Prizemart))

  • Listing SKU of 5 major chocolate brands varied across channels – Compared to last year, the overall listing SKU of 5 major brands shows differently; increased significantly at Chain SMKT (+30.7%) and Chain Drug (+39.1%) whereas decreased at Emerging Channel (-17.5%) and remains the same at Chain CVS.

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*Remark: No Chocolate shelves is found among the samples of Independent Drug.

  • Some major chocolate brands outperform others even there is cut/increment in Shelf Space of total category– At Chain Drug, the shelf space of chocolate has been slightly decreased by 7%. But, both Mars and Lindt have more shelf space than last year, increased at 75% and 14% respectively. For Lindt, it even has the greatest growth in Shelf Space at Chain SMKT (+58%) and Emerging Channel (+159%).

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*Remark: No Chocolate shelves is found among the samples of Independent Drug.

Besides the capability of collecting location data, how fast you can get the data is also crucial. It can make you either the leader or follower. The more data you can analyze, the better sales decision you can make.

Using the latest retail audit technologies, it’s possible to quickly and easily compare SKU level performance metrics and access backup imagery for any location – all in real time. In a single glance, for any SKU, check;

  • Stock levels/ OOS status
  • Current and/ or promotional pricing
  • Floor stacking, secondary display
  • …and any other metric of interest

Get in touch today to learn more.