1 / 27

Active Retailing in a Self-Service World Herb Sorensen, Ph.D., Scientific Advisor TNS Retail & Shopper Practice

Active Retailing in a Self-Service World Herb Sorensen, Ph.D., Scientific Advisor TNS Retail & Shopper Practice. “The Amazonification of Walmart ”. The Holy Grail – Active Retailing. To know exactly what each shopper wants, or may buy, as they come through the front door.

avalon
Download Presentation

Active Retailing in a Self-Service World Herb Sorensen, Ph.D., Scientific Advisor TNS Retail & Shopper Practice

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Active Retailing in a Self-Service WorldHerb Sorensen, Ph.D., Scientific AdvisorTNS Retail & Shopper Practice “The Amazonification of Walmart”

  2. The Holy Grail – Active Retailing • To know exactly what each shopper wants, or may buy, as they come through the front door. • To deliver that to them right away, accepting their cash quickly and speeding them on their way.

  3. Personal Selling Fundamentals Determine what people want Narrow their choices to a manageable few Make the process easy Upsell them on related items Close as quickly as possible

  4. Massification • Mass production – factories • Mass distribution – supply chain • Mass retailing – self-service • Mass communication

  5. Early P&G Soap Opera Ad

  6. 80 years later

  7. Mass Media Fragments

  8. In 1995, 3 commercials reached 80% of women 18–49 years of age and • In 2000, it took 92 commercials

  9. L - O - N - G The Tail Item Share (Count) for the Total Store The BIGHead 500 out of 32,000 items contribute 25% of total store sales Contribution of Single Items to Total Sales Rank of Single Items

  10. 1,000 SKUs $ By Dollars Focus on the Few Products . . . . . . that Sell the Best!(The BIG Head) # By Count Think About Those few Items, NOT Categories

  11. Item Management . . . “Well, we have never been a category company – that was decided long before I came . . . We look at it item by item. That doesn’t mean we don’t have a fair representation with a category. But usually it’s only the top five or six items in that category, and we look at them as items” . . . $1 million per day in their top store! Charlie Burnett, COSTCO

  12. 300 items dominate total store sales. 30 items dominate total category sales 3 items dominate total brand sales Typical household buys only 300 – 400 items per year! Half of those, 150 – 200, they buy regularly. Sell them what they are buying. Focus on the Few Products . . . . . . that Sell the Best!(The BIG Head)

  13. Item Management . . . “So our traffic is up, our sales are up. We’re in the 3% range right now over last year” . . . March 2010, Drug Store News Charlie Burnett, COSTCO

  14. No technology!!! Call out the top sellers

  15. Total grocery sales up 4% for the 1st quarter 2009 over 4th quarter 2008!!! Item Lift After “Top” Sign Corona 16% Angel Soft TP 67% Store Brand Butter 324% Ice Cream 116%

  16. For the Brand . . .

  17. For the Brand . . .

  18. “Internet” in the Store?

  19. Personal Selling Fundamentals Determine what people want Narrow their choices to a manageable few Make the process easy Upsell them on related items Close as quickly as possible

  20. Stay in touch with our cutting edge retail and brand supplier research program and commentary www.insidethemindoftheshopper.com Read my RetailWire blog! Buy the book! Read the Views (and subscribe! ) Receive notices on Twitter! Herb Sorensen email: herb.sorensen@tns-global.com

More Related