If you sell your products in supermarkets, you know how crucial it is to optimize your shelf presence. The shelf survey is a key tool for monitoring the visibility of your products and improving your merchandising. Yet it is often under-utilized or poorly structured, reducing its effectiveness.
At Sidely, our mission is to boost your supermarket sales. Thanks to our commercial CRM, your field teams can collect and analyze in-store data in just a few clicks, guaranteeing better sales execution.
In this article, we explain what a linear statement is, how to integrate it effectively into your strategy, and above all, we reveal the 8 major benefits your brand can derive from it.
Ready to optimize your in-store presence? Follow the guide!
Store check is a field operation carried out by brands to measure the presence and visibility of their products in-store. It enables the collection of strategic data on product layout, prices charged, shelf space occupied and sales promotions.
Shelf-space surveys enable us to assess compliance with negotiated agreements and analyze competition on the shelf. Shelf-space surveys can be carried out by :
Shelf-space surveys are based on the analysis of quantitative data (number of facings, length of shelf space occupied, prices, etc.) and qualitative data (shelf prominence, shelf attractiveness, presence of point-of-sale displays, etc.). It is a key lever for adjusting distribution strategies and maximizing sales performance in supermarkets. It is particularly useful for brands with strong on-shelf competition.
It is used to analyze the brand's visual market share (shelf space) and to optimize merchandising:
A shelf space survey enables brands distributed in supermarkets to :
In the second part of this article, we'll look at all the benefits of the linear statement.
As an Area Manager, your primary objective when visiting supermarket distributors is to record their presence. As you are well aware, your distribution agreements do not mean that all the products concerned will be systematically integrated into your retailers' assortments.
The shelf-space survey enables us to determine your product holding rate. This corresponds to the number of references present compared with the number stipulated in the contract. 4 products out of 5 correspond to a rate of 80%. 6 products present compared to 5 in the assortment gives a holding rate of... 120%.
The shelf-space survey is therefore a crucial step in assessing the factors impacting your brand's performance at your distributors' points of sale. You'll want to note as many points as possible, such as :
The most efficient way to carry out a shelf space survey is to use a commercial CRM or specialized solution, accessible on mobile or tablet devices. This guarantees fast, reliable data collection in-store.
With Sidely, you can create and fill in your shelf space reports in just a few clicks. All field data is centralized in one place, saving sales teams considerable time and improving efficiency in the field.
The benefits to your brand of a well-structured, comprehensive shelf survey integrated with your sales software are manifold.
Let's take a look at them!
The agreements between you and your distributors may include a number of criteria. As an area manager, it's your responsibility to make sure your partner complies with them. Here are just a few examples:
It's a good idea to compare data from different points of sale in the same geographical area. Tracking the presence of your product in each store enables you to calculate your numerical distribution rate (DN), i.e. the number of stores in which your product is distributed in a given area.
This analysis is completed by calculating the value distribution rate (DV), which corresponds to the market share of the points of sale in which your products are distributed.
DN should be analyzed on two levels: are the right products in the right place? Are my products in the stores that sell the most? To do this, it's important to compare DV and DN rates. This is known as the "20/80 stores" rule: 80% of sales are generated by 20% of stores. This ratio may differ in reality, but the principle remains the same. Where should I concentrate my presence? This is a crucial factor, and will help you determine your sales front, i.e. the stores on which you're going to concentrate in order to maintain the link and increase their profitability.
By keeping a close eye on the presence - or absence - of competing products among distributors, you'll be able to determine your product's positioning and market share in relation to your competitors. This overview of the competition then helps you to define your sales strategy, optimize your tour planning and revise your sales targets.
On the other hand, the use of shelf-reading data enables you to understand sales increases and decreases. By linking shelf-space data with sell-out data in each store, you can reconcile means and results.
For example, a visit to a sales outlet may reveal factors contributing to the lack of performance of your products:
In short: you understand what makes people sell, or what keeps them from selling.
Collecting, comparing and analyzing shelf data gives you the arguments you need to better advise your distributors, and thus increase sales. In addition to shelf readings, it's also a good idea to take into account IRI and Nielsen data, which project the market share of your range and brand.
Let's take a concrete example: you're a ham brand. The market share of ham in the delicatessen section of supermarkets is 30%, and your brand's market share is 15%. During your visit, you realize that only 10% of the aisle is devoted to hams. This has a downward impact on ham sales volume, and therefore on the department's profitability. On the basis of these reports, you advise the department manager to change the allocation of the department, increasing the representation of ham from 10% to 30% of the charcuterie department. A helping hand is well worth one in return: negotiate to be positioned at eye level in the aisle, and of course, that your brand represents 15% of the aisle.
Ideally, then, you should use the data collected in other outlets to increase the impact of your pitch to the retailer concerned by the lack of results. In fact, if you've noticed that another outlet in the same sector has implemented other practices, such as highlighting, price level, facing, or even shelf type, these are all factual arguments you can use to convince the floor manager to better promote your products. Especially when sales in other outlets have increased as a result.
Remember, the floor manager needs you to help him increase his sales!
Here's a second example: you see - with figures to back it up - that your organic product sells better when it's not in the organic aisle! Its placement in a conventional food aisle may be counter-intuitive, but it's the results that interest you in the first place. Your data can then be used to inform your strategy, but also to convince your partner. In such a case, you could advise him to put your product in a standard food aisle, but with an ORGANIC label and a revised price. If another outlet achieves 40% higher sales by selling the product for 15% less, the argument is unstoppable!
When you work with central purchasing agencies, such as Monoprix, your visits to supermarkets are generally an opportunity to discover the prices at which outlets sell your products. This is the famous "observed price".
This is a vital element for your business: consumers may be put off by a selling price they consider too high, and your distributor may have skipped over the selling price you recommended to increase his margin. If this is the case, use shelf surveys from other sales outlets to show that a lower selling price sometimes leads to higher results, including in terms of profitability!
When one of your distributors promotes your product, you owe it to yourself to pay particular attention to the commercial relationship. You'll want to increase the frequency of visits to monitor the impact of your actions. Your objective will be to contribute to the performance of the POS (point-of-sale promotion), by proposing, for example, to add an animation to get sales off the ground. Warning: if the operation is a failure, your distributor may no longer stock the product...
It's up to you to make the most of hypermarkets and supermarkets, which give your product a high profile, especially when it comes to exclusive distribution.
When you notice missing products on the shelves, you need to speak quickly with the department manager to determine the cause:
These explanations enable you to find solutions by escalating the problem to the appropriate people in the company.
The shelf survey is also an opportunity to question a lack of performance in relation to the product/demand match. Whether it's a loss of speed for the range in general, or the stronger appeal of competing products, don't neglect "market" criteria in your analysis.
So, take advantage of your visits to sales outlets to talk with the floor manager, with the aim of adapting the sales strategy and thus boosting sales, for example through events or promotions. Point out blocking points to the marketing department, so that it can adjust its messages to avoid losing its customer base, and try to adapt to their new expectations.
As we've seen, in-store line-scanning provides you with a wealth of crucial data. By collecting it via a mobile CRM designed for the retail sector, you enable your brand to converge all these marketing and sales actions:
So, developing and then defending your point-of-sale layout starts with a good shelf-space survey, using a high-performance tool that facilitates analysis. The key? Market share gains in your territory, and overall brand performance based on the analysis of real data.
Sidely wishes you happy sales!
