In a recent article in Supermarket News, Jim Hertel, managing director at Willard Bishop, made this point: Good collaboration between a grocer and its CPG partners is essential for successful new item introductions.* At Market6, we could not agree more.
You wouldn’t think that competition in grocery could get any worse, given it’s already slim margins and cutthroat jockeying for new shoppers and market share gains. But it is. Walmart for example, opened their 4,000 US store last year and added $10 billion in combined sales from 132 new stores– a figure higher than total annual sales for 80% of US grocers.
The Gartner Group’s August 2013 Retail Forecasting and Replenishment Vendor Guide found that retailers’ ability to use demand forecasts still falls way short of the potential value, especially around forecasting demand for new items and promotions.