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Active Retailing in a Self-Service World Herb Sorensen, Ph.D., Scientific Advisor TNS Retail & Shopper Practice. “The Amazonification of Walmart ”. The Holy Grail – Active Retailing. To know exactly what each shopper wants, or may buy, as they come through the front door.

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Active Retailing in a Self-Service WorldHerb Sorensen, Ph.D., Scientific AdvisorTNS Retail & Shopper Practice

“The Amazonification of Walmart”

slide3

The Holy Grail – Active Retailing

  • To know exactly what each shopper wants, or may buy, as they come through the front door.
  • To deliver that to them right away, accepting their cash quickly and speeding them on their way.
personal selling fundamentals
Personal Selling Fundamentals

Determine what people want

Narrow their choices to a manageable few

Make the process easy

Upsell them on related items

Close as quickly as possible

massification
Massification
  • Mass production – factories
  • Mass distribution – supply chain
  • Mass retailing – self-service
  • Mass communication
slide12
In 1995, 3 commercials reached 80% of women 18–49 years of age and
  • In 2000, it took 92 commercials
slide14

L - O - N - G

The

Tail

Item Share (Count) for the Total Store

The BIGHead

500 out of 32,000 items contribute 25% of total store sales

Contribution of Single Items to Total Sales

Rank of Single Items

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1,000 SKUs

$

By Dollars

Focus on the Few Products . . .

. . . that Sell the Best!(The BIG Head)

#

By Count

Think About Those few Items, NOT Categories

item management
Item Management . . .

“Well, we have never been a category company – that was decided long before I came . . . We look at it item by item. That doesn’t mean we don’t have a fair representation with a category. But usually it’s only the top five or six items in that category, and we look at them as items”

. . . $1 million per day in their top store!

Charlie Burnett, COSTCO

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300 items dominate total store sales.

30 items dominate total category sales

3 items dominate total brand sales

Typical household buys only 300 – 400 items per year!

Half of those, 150 – 200, they buy regularly.

Sell them what they are buying.

Focus on the Few Products . . .

. . . that Sell the Best!(The BIG Head)

item management1
Item Management . . .

“So our traffic is up, our sales are up. We’re in the 3% range right now over last year”

. . . March 2010, Drug Store News

Charlie Burnett, COSTCO

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No technology!!!

Call out the top sellers

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Total grocery sales up 4% for the 1st quarter 2009 over 4th quarter 2008!!!

Item Lift After “Top” Sign

Corona 16%

Angel Soft TP 67%

Store Brand Butter 324%

Ice Cream 116%

personal selling fundamentals1
Personal Selling Fundamentals

Determine what people want

Narrow their choices to a manageable few

Make the process easy

Upsell them on related items

Close as quickly as possible

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Stay in touch with our cutting edge retail and brand supplier research program and commentary

www.insidethemindoftheshopper.com

Read my RetailWire blog!

Buy the book!

Read the Views (and subscribe! )

Receive notices on Twitter!

Herb Sorensen email: herb.sorensen@tns-global.com