In stores, it’s time to optimize the assortment to increase productivity (but not only that)

Question about the size of the assortment on the shelves of supermarkets and hypermarkets is coming back to the fore as inflation increasingly affects consumer purchasing power. For a long time, distributors were divided:range of goods it has long been an element of differentiation and a way to counter the rise hard discount known for its limited range.

Except that in recent months, the sector has faced many problems: the desire to improve the readability of the offer, to improve the customer experience, to highlight private label products and premium products, to improve the productivity of the teams due to the lack of weapons. All these arguments force the sector to reconsider its vision of assortment policy: should the size of the assortment be reduced? If so by how much? What real impact on teams? What are the real expectations of customers in terms of new products?

The purpose of assortment in the business policy of mass distribution

By definition, the assortment must meet two requirements – a priori against – consumers. On the one hand, they want an optimal experience (readability, speed) and on the other, they are looking for variety.

To this, of course, we must add the concept of price, which, since the gradual growth of consumer prices, has taken on an unprecedented scope in the criteria for brand frequency.

Here are the benefits of optimizing your assortment

Working on your assortment involves making a crucial choice in the number of references offered to customers. Here are some key benefits to attract them.

• Optimize the assortment = customer satisfaction: he finds exactly what he needs and quickly. On the contrary, too much selection damages the legibility of the products on the shelves, which increases the time spent filling the shopping cart;
• Increase product readability : the best references see their two-sided or more;
• Optimize surfaces in the store : more space on the shelves, the possibility of doubling or tripling the linings during large rotations;
• Facilitates inventory management and replenishment : more shelf capacity = less stock in reserve = less time spent restocking. This also allows the shop to save on labor;
• Reduction of transport costs (it is difficult to quantify here, but the reduction of the assortment automatically leads to a smaller number of pallets);
• Improved automatic orders : in fact, by refining the offer on the shelves, reducing the number of low-rotation products and concentrating the offer, it helps to improve the forecast order;
• Mechanic, the concentration of supply ensures a better rotation of all products and thus less waste. It also saves teams time in checking deadlines, especially in FMCG where the task is not systematic in placing them on the shelves;
• Less than lack of supplies because more shelf capacity;

These arguments are shared by the store teams.

Another benefit I see is “definitely less hassle to implement every day,” comments a department manager here. Implementing new references sometimes forces teams to redo entire racks. ” Fewer references they would avoid cooking low-yield goods.”

“In FMCG, it’s time to win in data control. Fewer references mean less data to check for products that don’t work. It’s also more space for private brands and large rotations, and thus fewer defects and greater customer satisfaction,” comments the manager here.

From an operational perspective, dereferencing has become a key productivity lever

field side, work on assortments became the heart of the matter. In the store, many department heads say there is regular in-depth work on the assortment: “when I take the chips section, we’ve had to delete about ten references,” as one employee comments here, “because it’s a department that’s in the summer robbed, we saw a difference this year. We made sure all the references were in circulation and if some didn’t sell, we released the reference.”

“Our thinking has changed in recent months. Hyper is over 15,000 references to PGC alone. Today, the offer must gain clarity. Is necessary clean up the references a bit to improve the spins on our 20/80 », the store manager comments here.

Head of department, a more strategic job than you think

We no longer say department employee, but department manager.

The reduction of the assortment is also a reaction to the maximization of purchasing power

On the side of store directors and managers, this business strategy aims to promote the private label and the Premier Prix offer: “it is also a consequence of the change in consumer behavior,” explains the manager here. In fact, more oriented towards MDD or First Price – some brands go so far as to release MDD and First Price at the head of the nacelle – the consumer also limits his choice to go for products that will have less impact on his wallet. On the retail side, it’s a winning choice, as margins are higher with private labels.

This strategy of limiting assortments also raises the issue of purchasing power : for the customer, visiting a store that offers a limited number of references is also a way to avoid impulsive purchases. The store must also respond to shopping behavior to avoid unpleasant surprises at the checkout. We could also see there and loyalty strategy.

Finally, is more selection on the shelves always better?

The question is debated, especially since the number of references is also an area of ​​negotiation between manufacturers and distributors. The trend in the coming months is even towards new delistings.

Greater selection in itself aims to satisfy the diversity of customer tastes. Greater variety makes it easier to meet the needs of each consumer and therefore to target the widest possible clientele. Also, The wide depth of the assortment offers customers great flexibility in purchasing decisions.

Also, the reduction of the product range also entails risks. An example of dereferencing – even sometimes temporary, as recently Ricard in Leclerc – has a negative impact on sales. Losses from withdrawals can sometimes be greater than losses from a simple breakdown.

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Option yes but for department categories

New product placements are also pending. For distributors, the integration of new references is carefully monitored: “not all innovations are the same. We know the strategy of manufacturers who sometimes create new references just to take up space on the shelves,” insists the manager here. This strategy also aims to gain market share from competitors by limiting their competitors’ shelf presence.

However, some departments are exceptions. In certain categories, new products are welcomed and even welcomed with open arms, especially after TV campaigns and the determination of some people on social media. This applies in particular to:

• “pleasing” products : chocolate, candies, ice cream, cosmetics, soda, alcoholic beverage. In these categories, consumer engagement is real and hard to replace;
• 20/80 : for example jams or yogurts. In these two product categories, new products avoid fatigue and consumers look for pleasure shopping here.

In short, you have to choose. PUSHthe ideal assortment should be a mix between price and quality. Close cooperation between manufacturers and distributors on the spot becomes more than necessary to help the shops create comprehensive assortments both to satisfy consumers and to support field teams.