A Look at How Assortment Can Drive Success in Today’s Retail Environment
As all product manufacturers and retailers are well aware, the fast-moving consumer goods (FMCG) landscape has grown increasingly complex, and paths to purchase are no longer linear. While consumer shopping preferences shift to incorporate digital channels, the footprint of the brick-and-mortar space is evolving—a trend that will have a ripple effect on product assortment and distribution.
In looking at the traditional FMCG landscape, the number of brick-and-mortar stores in the U.S. actually declined last year. That’s the first time we’ve seen an overall store count contraction in FMCG since 2009. And while the dip represented just 0.3% of the total, the 1,047 store closings is far from immaterial.
Given the contraction and the convenience that online channels offer consumers, FMCG businesses need a seamless integration between their traditional and digital offerings. And that means they need to efficiently manage distribution between on- and offline channels, especially in light of the contraction in physical stores that happened in 2017.
So what does that look like? Essentially, successful operators will continually evaluate their portfolios to keep a watchful eye on what will drive future growth and then expand carefully with innovation and divest purposefully. For context, a typical grocery store has about 39,000 items. And while this presents significant variety for consumers, it also presents manufacturers and retailers with a wealth of decisions to think about when they analyze their assortment strategies. Nielsen – Read more…