It has been a while I talked to you about my feedback of IFM days. I wanted to share you extra thoughts on those days, whic were interesting.
Some stats about retailing in France:
- There are 7 800 hypermarkets and supermarkets in France
- To feed 28 M households
- Between 1997 and 2014, the number of products distributed has skyrocketed by 72%
- A shopper spend 48 minutes by week in store, 57 seconds per sections
- The average stockout rate in store is 6,8%
- The average genorisity rate for a promotions is 32%
- 80% of the time, an extra product generate extra sales
Couple of thoughts about it:
- About Stock outs: It is directly linked to the rise of the number of skus available in store. It brings complexity at each level of the chain, which makes it more difficult to follow the sales, and therefore can generate in the end stock outs. For sure it will be a key element to take into accounts in order to generate extra sales.
- About the growing number of skus: The number of skus available has exploded, far faster than the square meters available to retail those new products. If an extra skus generate extra sales, it also generates more operational costs, and you could be sure you will not be more efficient, which could results in stock out on top of it. As we have already discussed on this blog, you may see more and more lean marketing efforts in order to ease operations, but also the shopper decision making process, in order to be more efficient in the sales effort.