how to handle small high value products, to increase retailers profit. geir helland
TRANSCRIPT
“How to handle small high value
products, to increase retailers
profit”
Geir Helland
Baltic Retail Forum 2015 «How to handle Small High Value Products to INCREASE retailers profit?”
Who am I?
Geir Helland
Living south of Oslo in Norway
Just been appointed as «Global
Product Director» - StrongPoint
Technology
Responsible for the Vensafe
assortment
8 years experience from retail
Previously worked 22 years in
Alfa Laval
Examples
”Small, high value products”? ”Reduce shrinkage – increase sales”
Baltic Retail Forum 2015
The System
– designed for optimal logistics and easy transacting
«Increase retailers profit»…
Statements
To reduce shrinkage on small high value products, is the
“easy” part…!
To increase sales on the same articles, could be hard to
achieve.
With the right planning and willingness to change, it is
quite possible to achieve both "zero shrinkage" and
additionally increase sales to the end customer
«Zero Shrinkage»
Internal?
External?
Global Retail Theft Barometer Study Finds Shrink Cost Retailers $128 Billion Worldwide,
Averaging 1.29 Percent of Sales
Global Retail Theft Barometer Study Finds Shrink Cost
Retailers $128 Billion Worldwide, Averaging 1.29 Percent of
Sales
«Zero Shrinkage»
But it is NOT «nice» to lock them in…
Neither is this solution:
«Zero Shrinkage» is possible…!
«Zero Shrinkage»
Customer has to ask…
Products totally locked in…
Sales in EVERY check-
outs?
• This is the best
guarantee to decrease
sales…..!
«Handling and warehouse»
Just ONE place to fill
«Full assortment» in ALL
check outs
• Reduced storage cost
• Time saved
«Zero shinkage» and optimized «Handling and Warehouse»
might be enough to achieve increased profit, but…..
It turns really interesting if we are able to
keep, or even better, increase sales of
products.
How can it be done?
Lets talk how to sell…!
«Increase retailers profit»…
The Vensafe shopping cycle
- from entrance to exit Vensafe sales solution:a
trademark in all stores in
all markets.The concep
tfollows the customer all
through the store
1.Information to the
Customer at the entrance.
Informs the customer
what and how to buy on
2 - 3. Productcards tha tsell,
into the shelves
4-7. Place the touchscreens together
with products.campaigns, pricelists,
communication.
8. Communication, campaigns,
trashcans, pricelists
Do not think «reduce shrinkage and theft», focus on selling products…..!
1) Communicate and inform your customers.
2) Profiles products so customers can find them (attention)
3) Accept that there is a change - before and after installation of
Vensafe sales system
4) Establish new routines - and follow them
5) Train your employees and allow the system to be support in
daily operations
«Communicate and inform» Shop entrance
18
Info at the entrance to
the shop
•Easy shopping symbol
•Info about products
•Chains/Brand/Shop
“Profiles products so customers can find them”
Automatkjøp The Vensafe Concept in the
shelf
•Touchscreen
•Product cards
•Mechanical communication
“Profiles products so customers can see them”
“Profiles products - so customers can find them” Kiosk in front of check-out
«Big Productcards» – Placed where customers expect the products to be.
22
• Big Product Cards
• ”Real design”
• Placed where customers expect the products
to be
• Marked with ”Easy Shopping»”
•New productcards with new
design for every products
•To be placed at the shelves
and/or at the check out zone
“Profiles products so customers can see them”
Before After
«Big product cards»
“Profiles products - so customers can find them”
“Profiles products - so customers can find them”
Most important IS, to have enough «customer contacts»
And if everything went wrong, you can always ask the cashier…!
We know it is true…!
Bestandsentwicklung Zigaretten (66 Sorten)
Testshop 1 Testshop 2
City A City B
Beginning of the test 22.834 € 12.714 €
Inventory test end 8.124 € 6.568 €
Reduction -14.710 € -6.146 €
Reduction in % -64 -48
Goods turnover about 50 times /
year about 40 times /
year
Portfolio development
We know it is true…!
In the future – «Shop in Shop»?
