Comparison of the client’s share of stocks and sales gave an average picture across the retail channels measured. However, there was found to be considerable variation of stock share between stores, with significant impact on the resulting consumer offtake share.
By grouping stores according to stock : sales share index it was found that in many stores the client had less than 70% of the shelf space it deserved. Not surprisingly the client’s sales share was adversely affected and at 12% was only half the level achieved in stores where the index was greater than 80.
This analysis provided the client with a target stock : sales share ratio and a statistical measure of its shelf space health. The volume importance of the stores in which the client was under-stocked gave further incentive to focus on building shelf space presence.
Supporting data analyses such as rate of sale and sku rankings gave valuable assistance to the client. |