Trends from the top of the shelf


Trends from the top of the shelf

Inflation is now the new normal for retailers and manufacturers.  Making better decisions to stock better products for consumers while increasing growth is a key concern for industry leaders. 

Navigating the challenges of inflation on the shelf

Inflationary pressures have brought on a host of concerns for brands, including how to efficiently help consumers deal with new financial restrictions, how to keep shelves optimized with relevant and profitable offers, all while keeping operating costs low.

The unavoidable price increase of the FMCG basket and limitations for consumers’ wallets are always the hardest consequences of inflation—but it is possible to manage these challenges in a way that will mitigate the impact on consumers and businesses.

A space and assortment checklist

NielsenIQ has created a checklist of actions for brands to consider when making space and assortment decisions:

1. Assess and analyze SKUs

Using shelf data to identify core SKUs across the full portfolio is a key element of planning. Tools that use store shelf data, updated on a weekly basis, allow brands to create an ecosystem of priority products.

2. Embrace a “less is more” approach

Reducing the number of cannibalizing SKUs and freeing up space for products that are profitable and driven by consumer demand will allow brands to reduce operating costs. Brands can take this action when they’re equipped with a fully integrated view of every level of space and assortment management. 

3. Go with the smarter shelf, not the higher price

Introducing new products that answer consumers’ needs while offering various flexible price tiers within a brand portfolio can be achieved with precise sales performance prediction capabilities.

4. Act quickly  in a complex space and assortment world

Making good, quick decisions based on simulations and visualizations of store assortment can help brands stay a step ahead of new challenges that will be impacting the market in 2022. 

5. Protect your revenue

Filling out-of-stock gaps with products can save the whole industry billions of dollars per year. Knowing what is missing because of supply chain disruption is the key to acting quickly and keeping shelves full of the products consumers demand.  

Person refining their assortment

Make your assortment strategy work for you

While assortment is getting harder, your competitors are looking for every edge. Contact our Shelf Architect team to plan for the rest of a challenging year.

Introducing NielsenIQ Shelf Architect

NielsenIQ Shelf Architect is a single, cloud-based solution for your assortment and merchandising needs. By integrating data and models into one end-to-end solution you can simplify planning, drive better performance, and create sustainable growth – ensuring your assortment and space planning will help you navigate through inflationary pressures.