Surprising new information
about the difficulties and effectiveness of
continuity
merchandising.
"Can tight" is a familiar term
for grocery operators that indicates a shelf is
fully ready for a consumer. Products are
fronted, and as fully stocked as available
inventory will provide. Shelves stocked "can
tight" are assumed to be set
correctly.
This practice was
identified as being responsible for hiding
out-of-stocks, as holes were routinely "faced
over". It turns out that leaving those holes
open might help slightly in combating those out of
stocks. However, what is definitely true is
that product that looses shelf space has a
difficult time finding its way back. No
amount of standing in front of the shelf divining
what might be out of place, short faced, or void
is very productive.
Staring at a
shelf set, thinking about the plan that is
supposed to be in place and identifying and
understanding the differences from that plan is a
tough, tough assignment. Even with aids such
as inference generated "alerts" and no-scan
reports the process is frustratingly
difficult. DSR technology frequently
generates false positives or, even more
frequently, fails to report real issues.
Let's look at a quick example:

This picture of a modular
(viewed through the ShelfSnap application) is what
continuity merchandisers face every day.
Merchandisers typically visit 2-5 stores and
review 2-15 categories in each store.
Usually, they might have 1-2 tasks to accomplish
(cut in an item, build a display) along with
checking that the shelves are "can tight and
right."
In this case the
merchandiser's eye would naturally be drawn to the
out-of-stock in the second position on shelf 1 in
the second segment. It might also be drawn
to shelves 1 and 2 in segment three where products
could use a good face up. But the rest of
the set "is can tight and looks right".
In this case the continuity
merchandiser had all most of the modern tools that
could be brought to task including:
- Mobility Solution and PDA.
- DSR fed with POS sales (updated multiple
times each hour), a perpetual inventory and
"alerts" from a sophisticate inference
engine.
- Shelf-tags with full item detail, in many
cases with images of the product that should
have been in the
slot(s).
Even with these tools the task
of separating the real issues from the false
positives is impossible. The hurdle the
merchandiser is facing is simple human
physiology. According to Dr. Wolf, a Harvard
Ophthalmology Professor and chair of the school's
Visual Attention Lab, there are confounding
operations needed to complete this comparison
which puts a tremendous strain on mere
mortals. One of those hurdles, called the
prevalence error, affects the merchandiser in two
ways. First, the eye is drawn toward the
obvious issues, the out-of-stock in this case and
away from the rest of the shelf. Further,
the brain "expects" to see a "can tight" shelf and
once it sees that it has a hard time seeing beyond
that fact into the content of the shelf.
In other words the job as defined,
given the tools above is impossible to
do.
So, how far from the planned
Modular was this particular set, after the
continuity merchandiser left the store? If
we define compliance, as we ought to, in terms of
the correct products, in the correct spots with
the correct facings, than the average store in
this study has been compromised by almost
60%!
ShelfSnap carried the
investigation a bit further comparing actual
compliance in stores that received a normal amount
of store servicing, against stores that received
an extraordinary amount of additional continuity
merchandising staffed by professionals engaged by
the manufacturer who dominated the category.
These resources were directed by a mobility
solution driven by daily sales information.
After a brief shake out period, where the
continuity resources seemed to be having an impact
(building off a very non-compliant base),
compliance slipped and both level and trend of
plan compromise became identical in both
panels. In other works, incremental
continuity merchandising by itself had absolutely
no impact on plan compliance. When
ShelfSnap added in SnapTask Directed
Merchandising, picture based analysis about which
products and positions need attention, the results
turned positive very dramatically. How
dramatic? Double digits - a 15% sales
increase!