Smart Form Builder
Reporting and Analytics
Master Data Management
Workflows and Alerts
No Code Software
Surveys, Audits, and Inspections
Task and Process Management
Facilities execution must be at peak performance for every store
But what if corporate could see that two-thirds of the meat grinders are malfunctioning, and ground meat sales are down across the board? That level of visibility definitely draws more attention to the problem and gives grocery executives the ammo to take action.
Grocery chains must react quickly to their constantly changing product assortment
Are there any broken fixtures?
In our incredibly fast-paced world, we almost need to know things before they happen. Grocery stores are no exception. It’s no longer enough to carry around a clipboard with a checklist that is filed away for future reference. Maximizing sales per square foot in the current retail environment requires an unprecedented level of visibility. For grocery stores to compete in today’s cutthroat market, data must be collected on virtually every aspect of each store. Taking it one step further, data aggregation and advanced filtering enables grocery retailers to boost profits. Whether it’s plugging existing holes, finding systemic problems, or revealing new revenue streams, it’s all to be discovered in the data.
Sales and shrinkage are like two opposing forces. In order to maximize sales, you must minimize shrinkage. Maybe that means moving expired sausage off the shelf and replacing it with saleable sausage. Or changing product displays so that soon-to-expire products are at eye level.
Adhering to planograms and display execution requirements moves more product with ease. And, they can also help a grocery retailer’s bottom line, which can contribute to increased sales per square foot for all stores.
Is the store fully faced (i.e., is product on the shelves)?
Check out a number of sample Missions showing some of GoSpotCheck's various use cases.
Employees have to know where everything goes, how to execute displays, and how to spot gaps in store stock. And all the while, shoppers are picking things up and putting them back in the wrong place.
The really hard part is that maximizing sales per square foot isn’t as simple as just stocking more products. Every functioning part of a grocery store contributes to that number. Like so many other industries, it’s all about analyzing data and taking appropriate action. And in many cases, the bulk of store data is collected manually - a time-consuming, tedious process that just won’t cut it anymore.
Want more resources?
In order to operate at peak performance, store managers and any responsible party must be able to gather data in aggregate. For example, maybe a store manager knows their store’s meat grinder is not up to standards and is working with corporate to address it.
However, there are a handful of non-traditional grocery retailers doing the exact opposite. Discount grocer Grocery Outlet recently announced its intent to open 25 more stores in 2018. German discount grocers Lidl and Aldi also have big expansion plans involving the U.S.
And what if all necessary execution doesn’t happen? Customers may need staff help to find products - or leave the store frustrated (and without a sale). If stores set up displays incorrectly, or not at all, manufacturers may charge them hefty clawback costs. Any of these scenarios result in lost revenue for the store, which can further decrease sales per square foot.
Want to learn how GoSpotCheck can help boost sales per square foot?
The vast majority of grocery stores have morning and evening store walk checklists. They look for the same things every day, like:
Grocers: Here's How to Maximize Sales per Square Foot
Why are some grocers closing stores while others build more?
Is there any trash outside?
Achieving operational standards and adhering to display requirements is critical, but there are some common product issues that appear in every grocery store. Executives and managers must do their utmost to identify and remedy any problems.
Are there wet floors or other hazardous areas?
Field teams can take high-quality pictures of displays to ensure compliance and easily attach them to reports. Qualitative data can be used to verify correct execution, confirm product placement, and more.
Stores must adhere to merchandise display requirements and planograms
Let’s say a large consumer goods manufacturer contracts with a regional grocery store chain for soft drink displays. The industry standard execution rate for display setup is 80 percent, for example. What would happen if a grocery store could guarantee 100 percent execution, using real-time display execution data? It just might improve that relationship and reduce contracted rates in the process.
Making sure every product is in the right place is no easy task. Planograms map products to their appropriate shelves in stores. Manufacturers also demand merchandise-specific displays as part of their relationship with grocery chains.
Grocery retailers are required to focus on moving product to increase sales - but they can’t put the cart before the horse. In order to maximize all sales opportunities, individual stores have to operate with the highest efficiency.
As real estate costs continue to rise and shoppers shift towards available online channels for grocery shopping, well-established grocers find themselves in a new position. In order to decide whether to keep a store open or shutter its doors, executives must look at a vast wealth of shopper data from a variety of channels. But what it all boils down to is this: grocery retailers are held accountable for every penny they can squeeze out of any given store. So for all the metrics they measure on, an absolutely critical KPI to increase is sales per square foot.
Shrinkage, specifically, is a unique challenge for the grocery industry. Though shrinkage can include shoplifting and checkout mistakes, grocers’ revenue suffers mainly from food that’s gone past its expiration date. And unlike many other retailers, grocers must move products based on varying expiration dates - or forfeit a sale entirely. Loss prevention departments at corporate headquarters are completely dedicated to this very task.
In order to make this work, grocery employees at every level need access to real-time data
So how can grocery retailers maximize sales per square foot?
Imagine checking hundreds of variables on a sheet of paper, which then needs to be scanned and emailed to the corporate office. An admin at the corporate office takes all the printouts and manually inputs them (yuck!) into a spreadsheet, aggregates that data, and sends it off to a regional vice president or other partner. Often, it takes that amount of manual work to give the corporate office any visibility into individual store locations.
Contact us today for for a demo
In addition, stores can work to rectify common occurrences like out-of-stocks and product voids. As employees are monitoring shelves and finding products that are out-of-stock, sending that data back through a real-time platform allows managers to get notified - and place a new order asap. Voids are an even easier fix for store staff. Since the product is in the store (just not on the shelf), store employees have the opportunity to resolve the issue independently - and report the speedy resolution to corporate.
Brick-and-mortar grocery stores have been making headlines recently, but the news is not always up and to the right. Sam’s Club, the membership-only retail arm of Walmart, announced the closure of a whopping 63 stores in early January of 2018. Rather than opening more stores, Kroger plans to maximize sales at its existing 2,800 locations by utilizing massive amounts of shopper data.
Learn how other companies leverage GoSpotCheck to gain visibility and drive execution.
Maximizing sales per square foot may seem like a daunting task. With all those moving parts, where’s the starting point? The key here is to think at a macro level, and then execute smaller tactics with data-based decisions. Here are our recommended strategies to optimize sales per square foot.
In order to optimize sales, products must be displayed as dictated - either by a planogram from corporate, a display model from the manufacturer, or some combination of the two. And the best way to know if product displays are correct is to input display data for confirmation.