Delistment Decisions

Millions of dollars are lost due to delistment decisions

Overall, there is a high opportunity cost from delisting items. The estimated percent sales lost due to delisting has historically been greater than the new item dollar share. In highly marketed categories, roughly 30% of category sales are generated from SKU movement. With such a substantial chunk of category sales tied to listing and delisting decisions, the accuracy of assortment management is critical.

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Some merchandising advice:

1. Answer the shopper with what's in it for them. Savings, New, Larger Size, something that's unique or different in the eyes of the consumer.
2. Is it on strategy? Make sure you communicate the strategic priorities to your team or agency.
3. Shoppers have enough to think about. Stay focused on the message and don't overdo it.
4. Type sizes make a difference. Ask yourself if the type size will help consumers make a purchase decision.
5. Make an accurate decision by viewing your materials in full size. On-screen proofs are deceiving.

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CPG Trade Development = Look to grow THEIR category and your brand will go for the ride. It's all about sales. Their sales.

by Dave Wohlner Thursday, 17 May 2012 17:30


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Delistment Decisions

Back to Basics for CPG Promotions

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