When the market is tough, it’s even more important to look toward potential growth opportunities.
Belgium’s market is no exception. Growth rates are diminishing, and in the past ten years, 72% of growth has been driven by price. In fact, the importance of price as part of total growth has become even larger in the past years. Smart retailers and manufacturers are investigating the best ways to win consumers over in a difficult market and many are realizing that having the right assortment mix is a key for success — with our research showing an average +3% sales uplift after optimizing the range.
Here’s why range is so important for retailers and manufacturers:
- 60% of final purchase decisions are made in front of the shelf; that’s why getting the right products on the shelves is critical.
- Five of the top ten attributes that influence shoppers’ store choice the most are linked to assortment; 42% of Belgium shoppers with food sensitivity or limitations indicate that their needs are not fully met with today’s product offering.
- Shopper loyalty has improved by 4% in Belgium and consequently one of five shoppers only visits one store. Not having your product available in that store means you’re out of scope. At the same time four of five shoppers visit two or more stores where assortment is one of the key drivers for store choice; how can retailers prevent losing shoppers?
But where are the opportunities for range optimization? According to Nielsen, an example of a segment that is saturated is the beverage category. Even though the average item in the beverage category has a high rate of sales, we also observe a high level of cannibalization amongst the different SKUs. By optimizing range, the beverage category will be able to reconnect with organic growth.
The key message? Maximize your opportunity with effective assortment strategies and tactics that foster incremental sales and drive growth. Contact Nielsen Belgium to find out more.