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delivery
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UK
retailer: More than half the shelf space of small
format stores can be released through singles picking
As
the big grocers move into convenience formats they find rates of sale
that for most products can be one item per week.
Pack sizes from manufacturers are typically 12s or upwards. By modelling
actual store stock against that required for demand and minimum display
quantity we showed that more than half of potential shelf space is
wasted as a result of pack size – i.e. for holding the other
11 items that won’t be sold yet.
The ability to free up shelf space creates huge revenue opportunities
through; new categories, width in range and fresher product. Analysis
showed that overall profitability would significantly increase if
the products are picked and delivered as single items (i.e. in line
with demand) at the retailers’ warehouse. Interestingly, in
this context store ready packaging is irrelevant. |