In part seven of a 12-week programme, find out how Coca-Cola European Partners and the IAA helped retailer Ranj Hayer make his ranging more effective
Retailers demonstrate effective ranging when they stock a mix of core, niche and new products while giving customers a choice to suit their budget. Store owners can do this by analysing EPoS data to identify slow-selling lines and working with suppliers to ensure the success of new products.
Before benchmarking, find out how Sam Southgate from Coca-Cola European Partners helped Ranj Hayer develop a tailored action plan to refine his approach to ranging.
Based in Weston-super-Mare, Ranj’s Premier has been in the family for 32 years and is one of a number of businesses he owns locally. The store is in a residential area and close to a school, but has little passing traffic. Ranj has a strong core range and frequently introduces new products, but how can the IAA help him improve his range and increase sales?
Name Ranj Hayer
Shop Hayers Meadvale
Location Weston-super-Mare, Somerset
Size 1,800sq ft
Staff Three full-time, six part-time
Why I take part
“Retail is an industry that changes every day, and I want to be able to learn and adapt with the changes, especially when it comes to my range. It was great to meet Sam from Coca-Cola European Partners and work through an action plan that I hope will improve our margins. The visit today was interesting and insightful and I’m excited to see where this relationship will take me and my business.“
Ranj’s challenge: Planning and measuring long-term success
Ranj offers a wide range of price-marked packs (PMPs) across different categories within his store while trying to balance sales and margins made. How can he better plan his promotions to enhance his sales?
Sam says: “PMPs and multi-buy promotions are great ways to show you are competitive and gives the shopper confidence they are getting a good deal. PMPs drive impulse buys and purchase frequency while multibuy can encourage shoppers to pick up more of the same product. Work with suppliers and experiment to find the right promotions for your store.”
Action: Work with suppliers to develop a mix of PMPs and multibuy promotions to drive basket spend.
Ranj’s challenge: Ensuring the success of new and niche products
Ranj often introduces new products to keep his range fresh, but when he does this, he doesn’t always promote them to customers often resulting in sales tailing off. What can Ranj do to ensure their long-term success?
Sam says: Introducing new lines is key to keeping customers interested but it’s crucial to drive awareness to ensure they continue to sell. In addition to secondary displays and PoS activation, social media is a great way to do this. Personalise the message by one of the team trialling the product and telling customers what they enjoyed about it.”
Action: Use social media to target existing and potential customers with new product recommendations.
Ranj’s challenge: Analysing sales data and deciding when to delist
Ranj’s challenge: Analysing sales data and deciding when to delist Ranj analyses his EPoS data every eight weeks on a line-by-line basis. If a new product performs less well than another he will choose to delist it. Could he benefit from approaching this on a categorywide perspective?
Sam says: “Deciding whether to delist a product is challenging, but Ranj is very disciplined. EPoS data enables him to make informed decisions on whether to delist products or increase facings to drive sales. By sharing this with suppliers, Ranj can get insight about shopper demographics, so he can ensure he stocks the lines that will boost overall spend.”
Action: Work with suppliers to review sales data and use this to review your range at a category level.
Wholesale & Convenience Activation Lead
Coca-Cola European Partners
“Ranj is a disciplined retailer who knows his customers. Effective ranging is vital to identifying the opportunities to increase sales and I think when Ranj inputs the action plan his sales will improve, and he’ll get to know his customers even better than he already does.“