Single Store Owner

AUG-SEP 2016

Issue link: http://magazine.csnews.com/i/715641

Contents of this Issue

Navigation

Page 33 of 53

34 / Convenience Store News for the Single Store Owner / AUGUST/SEPTEMBER 2016 FROM THE EXPERTS 1. PREPARE Key considerations that should influence the choices you make for your category assortment include confirming the category's role. What is the role of that category and the corresponding as- sortment strategy? Your most important categories (those with a destination role) require the broad- est assortment. Also, consider your shopper. What are their most important needs to be met in the category? If you don't understand the shopper for a specific category, talk to your supplier and see if they have any information to share. 2. ASSESS THE CATEGORY Category assessment (I covered this in my June article) is important to understand who the shop- per is, how the category is performing and where the opportunities are. Requirements for this step are: • Category item rank report: Based on dollar sales, unit sales and profit from your retail scanned sales data. You should pull this data for each of the subcategories within the category. For example, in confectionery, you would pull an item rank report each for chocolate bars, peg candy, gum, non-chocolate bars, candy rolls I n the June issue, I wrote about how to analyze your data to make more strategic and fact-based decisions that focus on your unique shopper. First, you need to under- stand the key data sources available to you as a convenience store owner and then, you learn how to analyze and ultimately make better decisions for your stores using the data. Now, I want to talk about choosing the right product assortment for your categories or, in other words, what items you will carry in your store. As- sortment is one of the most important decisions you make for your store. What items you do and don't carry has a direct impact on: • The Shopper: Are you carrying the right prod- uct choices for your shopper and their needs when they come in your store? • Shelf/Space Planning: How will the products fit on the shelf? Where do they belong on the shelf? • Store Labor: How frequently do your shelves need to be filled? How much work is it to put products onto the shelf? • Inventory Cost: How much inventory do you need to carry of the product, both on the shelf and in your backroom? What are the product turns? • Marketing: How do you let your shopper know about the product? It's important to understand the fundamental decisions and requirements behind assortment. Here are four steps to help you do this: Assessing Assortment Opportunities 1. PREPARE • Confirm your strategy and category role • Acknowledge your supplier's strategy • Define category structure 2. ASSESS • Category overview • Brand & subcategory productivity • Item level analysis 3. RECOMMEND • Category item lists, delists, reviews 4. IMPLEMENT • Assortment recommendations based • Assortment recommendations based on assessment By S UE Nicholl S , cATEG o R y M ANAGEMENT K N owl E d GE G R o UP How to Make Strategic Choices on What to Carry Assortment is one of the most important decisions you make for your store

Articles in this issue

Archives of this issue

view archives of Single Store Owner - AUG-SEP 2016