Slim down waste, beef up profits

In a recent post Nick Shanagher talked about the Fast Diet.  Its clearly a life style change that can deliver a reduction in weight with just two days a week of ‘discomfort’.

I decided that I needed to lose some pounds last year and took the more traditional approach of consuming less calories than I was using each day. With the support of a smart phone app to help me keep on track and setting a target I reach my goal in 5 months. The tools that I used for success along with the encouragement family and friends were:

1. My Fitness Pal – data and tracking
2. Fitbit – Bluetooth enabled pedometer
3. Scales

The reason I report this here is that I found the process of getting lighter was very similar to managing the space in my store and the stock we had in our range. Understanding and using my scanning sales data coupled with a knowledge of what it cost to open the shop everyday was a guide to know where the ‘fat’ in my range was.

I have had to opportunity to talk to the Better Retailing team of retailers over the past year about how they improve their range, stock selection and displays and they almost all say the same thing. They share their scanning data with their key suppliers and use planograms.  Paul Cheema and his brother go further and actively search for manufacturers who are willing to work with them to create bespoke industry based planograms for their store.

The tools to use for creating more profitable display space.

• EPOS system – to provide data on what is and what is not selling. Also key to tracking success of changes
• Planograms – industry based range and display plans will be based on real sales
• Suppliers – all the major wholesalers offer planograms that suit their customers.
• Retail Newsagent and the other trade magazines to keep informed about what’s new and may need adding to your range.

For more information read the Better Retailing Guide to Categrory Management and Planograms

If you decide to take the plunge with planograms do let us know how they work for you.