The retail industry comprises of businesses involved in retailing goods or merchandises for personal or household consumption mostly encircled with accessories and clothing, pharmaceuticals, food and beverages, technology, home improvement, and others. The primary factors boosting the growth opportunities of the retail segment players and the global retail markets include the increasing population, higher disposable income, and rising consumer spending. However, the increase in unemployment, inflation rates, and decline of the economies globally are some of the factors influencing the sluggish growth of this market. As a result, many retail firms have started opting for category management studies to reduce the overall inventory spending.
The Procurement Pain Point and Insights Offered
A global retail firm wanted to consider category management study to improve their shelf profitability. Additionally, the client wanted to assess the dynamics of the market, drivers, and niches. Furthermore, they also wanted to gain insights on the suppliers pricing, cost structure, price model analysis, and assess competitors’ category strategies to cut down on their inventory spending.
The category management specialists at SpendEdge carried out a blended two step research methodology, which included primary and secondary research coupled with qualitative and quantitative data collection methodologies to cater to the specific category requirements of the client. During this study, the client was provided with the essentials of consumer purchase patterns, which addressed penetration, loyalty, and frequency of products. Additionally, the client was given insights about the performance trends for the state versus the performance trends in the market which helped them adjust to superior strategies with the help of SpendEdge’s SWOT analysis.
Key questions answered in this category management study include
The category management study helped the client gain insights on the suppliers pricing, cost structure, price model analysis, and assess competitors’ category strategies. Additionally, the client was provided with a consumer decision tree as a guide to determine assortment. This helped them reduced inventory dollars by 15%, significant reduction of items, and a substantial increase in the dollar volume.