...Monday, October 19, 2009
I've Been Rationalized
Indulge me while I relay a personal experience with SKU rationalization. An urban dweller, nesting in a tight one bedroom high-rise condo, bundled amongst the towers off Lake Michigan, my haven is the corner Walgreens. I must be in there three times a week, replenishing center-store necessities. But, recently, Walgreens has been scaling back on items as part of its Customer-Centric Retailing strategy — and it scaled back on me.
SKU rationalization is all about cleaning up the excess on-shelf. As Kim Feil told us during an interview about CCR, nobody needs a Walgreens with nine different flashlights. I totally agree. Same goes for cutting my brand of body wash — a little bruised at first — I happily brand-switched. Yet, in paper towels, "my" Walgreens has me perplexed. Where's my 3-pack? The store offers a single roll or an 8-pack in my brand.
The store manager on staff said the decision came from the top and that it's cheaper to buy in bulk. She whispered, "they also want you to buy more." She wouldn't be shocked if the convenient 3-pack returned, but she said there have been changes from "the reconstruction" of the stores.
Assuming shopper insights led to this decision, perhaps I'm odd man out. I'll give "my" Walgreens the benefit of the doubt. So I'm stuck with one roll at a time (I can go with a 6-pack or a 12-pack in another brand but that's still too cumbersome to carry home or store.) Covering the industry, we tend to live in abstraction when discussing terms like SKU rationalization and shopper segmentation. Here, it hit home. SKU rationalization is one of the hottest topics. Read more on the debate:
- We debate it in our report on the center store.
- Institute members can follow a Walgreen's store check.
- Supermarket News subscribers can follow their coverage.
DVD Displays Done at Walmart
The effects of Walmart's Project Impact strategy has spread to eliminating DVD display cases at its stores, the Wall Street Journal reported. More than clearing out the Action Alley, Project Impact is devoting more shelf space to top-selling products and cutting back on clutter, like corrugated displays for DVDs, says the article.
Post Expo
A successful In-Store Marketing Expo wrapped up two weeks ago at Navy Pier. Real quick, here are three pretty unique companies that I ran into on the show floor. Members of the Institute will be able to access more show coverage in the coming weeks.
- Tobii. Running attendees through tests of its widescreen eye-tracking technology, Tobii demoed how it tracks and measures a person's eyes when looking at various ads or packaging. The system delivers instant results. Members of the Institute can watch this video of the Expo demo.
- Ecast. An Expo debut, Ecast, who made its mark with interactive music and activity kiosks for bars, unveiled its in-store ad circular kiosk. The company partnered with ShopLocal to develop an alternative to the newspaper print circular. We will be doing a larger feature on this in the January issue of Shopper Marketing.
- Integrated Media Group. Jason Opat is the man behind the high-tech computer graphics you see in war rooms in movies like "Iron Man" or "G.I. Joe." He's leveraged those skills to create a window-projection, gesture-driven kiosk that uses video of a live model as an extra salesperson. She reacts when you poke her in the shoulder and she helps guide you through the buying process. Watch a demo at the company site.
Thanks to those who said hi at Expo,
|
  |
