Blog for Retail
SHARE OF SHELF vs SALES GROWTH

SHARE OF SHELF vs SALES GROWTH

Every object or a person stands a tier apart when it comes to comparing their skillsets or talents, purely based on the fact that the talents may vary indifferently. This applies similarly to how the products stand in the share of their shelves, compared to the in-store customers and their requirements.

Lots and lots of space, yet a known turf for the customers. A retail store is somewhere with a handful of large shelves with lots of potential and new products for the display, but still a dilemmatic approach to customers who are keen to purchase the same old, same good.

In recent times, most of the CPG brands have faced fortunes for market share as old as time itself. Even in the situations where most shopping affirmations and decisions are made in-store at the fixture and shelf space continues to take a dip as new brands emerge, hence growing its brand’s market share has never been more difficult.

But eventually with luck, winning brands are gaining a competitive edge by leveraging baseline support to analyse their market share versus their shelf share so that they know that an affirmative trade spend is optimized with a good product mix so that the strongest brands are always available, detect distribution voids, and to identify opportunities for growth on the shelf.

S(H)elf-share is very similar to market share but is based on space allocation instead of sales performance. 92% of the recent hit on the running shelves have been denoted by the affiliation of the brands the in-store customers have run onto, showing that the sales drive it a bit more lenient. Forward-thinking companies have taken their steps towards comparing both the instances of having a better understanding of the competitive landscape in stores.

Another level of support available to drive sales and market share is to expand the dynamics of the space allocated to a certain brand’s product or the entire brand in-store. Retail space is not flexible, with the clutches of a certain slotting price come up with it too. In terms of listing or insertion fees, knowing how much space is optimal for your products and brands will provide a competitive advantage and help ensure trade spend is optimized. Share of Shelf (SOS) is like market share but is based on space allocation rather than retail sales performance.

Typically, SOS is calculated in two ways:

· Appearances:

How many appearances/facings of your product are there on the shelf compared to the total number of facings of all other products in that category?

· Offer-able Linear Shelf Space:

How much physical shelf space (offered in linear length) do your products take up compared to all products ranged in the category?

Most brands will calculate shelf share in one of these two ways. The former counts the number of your product’s facings compared to the total number of facings of all other products in that category. While the latter measures the physical shelf space owned by your product compared to total shelf space owned by that category, as the dilemma of choosing the right sets of shelves becomes the main concern.

Accordingly, this would be the cause to run the engines of upfront sales and merchandizing as statistics relay that about 56% of customers (overall) sometimes take a turn on trying a new product by the shelf compliance or the stock that the shelf holds, too low or has been taken by any sorts.

To witness this upfront, let’s say you saw a mismatch between shelf share and sales — say a product with a small shelf share had very high Point of Sale system sales uplift, while another product that had high shelf share was showing very low POS sales at the same stores — he could adjust their product mix strategy in that store to better serve the market’s needs and assure the right products are always on the shelf.

A characteristic reason for choosing to compare the shelf share data with the sales data is to show the strength of each product in that market, as well as if any facing may have gone oblivious over time. Many CPG companies and distributors are turning to Computer Vision technology to automate and digitize in-store execution.

Offering the ability to recognize every single SKU on the shelf and identify its location using sophisticated geometric techniques, these advanced systems provide the most reliable way to measure share of shelf.

In the case of Xtract, we don’t stop with just identifying distribution voids without their reps physically being in the store. Instead, we can use the data from these reports to counter-value SKU-level outreach with the list of products approved for distribution, and take motives to reinstate sales-commendable products before competitors move in on another batch of empty spaces left frequently by your best-selling products with lower shelf shares relative to their market share.

In the cases of obtaining more SKUs over the shelves that are meant to hold the highest sales-grossing products, we get to analyse both the factors that whether the product is selling in higher graphs and whether the shelf is grabbing more customer frontier and in turn, sales! This is indeed the verdict from the fact that about 66%, that is approximately one-third of the shelves in the retails have been doing their tasks of sharing the dynamics of the product quite affirmatively with the insights of the SKU’s and ePoS’s amends.

Understanding how much shelf-space you have in relation to the total market share is key to knowing if you’re outperforming expectations, or falling behind. Without the data to manage which accounts you’re behind in, you’ll never have the ability to catch up to your competitors. That is how your tally with the Share of Shelf can overturn the margins with the probable decline in the sales chart’s growth.

To know more about some of the retail chain’s indecisive moves you can execute with the Xtract, do head over to www.xplorazzi.com or check us out on one of our social media sites — FaceBook, Instagram, and more!

“We Xtract the Greatness from the Goodness!”

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