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.
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.