Leading CPG companies have used perfect store strategies globally to great effect over the last twenty years to improve the shopper experience and ultimately drive incremental sales. Building and executing a perfect store strategy requires executive sponsorship from the c-suite and a cross functional commitment by the market and channel to deliver consistently over time.
Many of the world’s biggest Consumer Packaged Goods (CPG) companies have implemented Right Store programs, with varying degrees of success. The concept is deceptively simple – focus field sales resources on the stores most likely to generate the greatest incremental sales.
It is vital both for brand owners and retailers that products earn their place in stores. That means giving each product the best chance of succeeding. Brand Owners with a detailed understanding of what drives sales know that execution at store level can either suppress or amplify sales.
The business plans have joint KPIs and are regularly reviewed by retail partners to ensure the brand owners are delivering on their financial commitments. However, the retail partners’ execution of the business plan is often less frequently considered which can mean that opportunities are missed to flag early and maximize the value creation from the sales drivers in the plan.