LONDON--(BUSINESS WIRE)--SpendEdge, a leading provider of procurement market intelligence solutions, has announced the completion of their latest article on the 5 rules of category management that every retailer should swear by.
With rising customer needs, it has become vital for retailers to maximize the value of the retail shelf space. Category management allows retail stores to manage clusters of items within a shop environment and helps companies to save a significant amount of money in procurement by making better buying decisions. It segregates similar products into separate groups and helps firms to apply procurement methodologies and ensure maximum savings.
At SpendEdge, we understand that retailers need to innovate more to attract and retain consumers. Therefore, we have listed out key rules that can help retailers to improve customer value propositions while ensuring profitability.
Five Rules of Category Management That Retail Stores Must Follow:
Be involved in decision making
Most retailers rely on some suppliers who have better access to the necessary data. They do not participate in decision-making. Involving in the decision making process can help the buyer management hierarchy achieve their KPI’s. It can also help retailers to know relay schedules and involve in planning discussions more effectively.
Involving in the decision making process is crucial for companies to gain a competitive edge. Request a free demo and leverage our tailor-made category management solutions now!
Understand the volumes and margins
Retailers must understand the volumes and margins of all products in the category. This will help them meet consumers’ demand and increase sales. They should aim to maximize the absolute margins that come from the shelf space, rather than focusing on individual margins. For detailed insights, request for more information.
Calculate sales from different shelf positions
To improve category management, companies must also understand how the shelf positions of different SKUs’ impact the sales. It is not practically possible to keep all products at the eye-level. Retailers need to analyze data and decide whether the products should be placed at a higher level or lower level. Also, they must determine the type of shelf grouping - by size, brand, or flavor that could increase sales. They can try out different combinations and compare the data sets for accurate insights.
To access the complete list of rules of category management that retailers must follow, get in touch with our analysts here!
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