MARKET WATCH
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At-Shelf Sensors Reduce Out of Stocks: Study

A test of the effects of at-shelf sensors on the out-of-stock (OOS) problem is yielding positive results.

Four Giant Eagle supermarkets in the Columbus, Ohio marketplace tested the sensors from Powershelf, provider of retail technology solutions. Results were released at FMI's Midwinter Conference in late January. Some key points are:

  • OOS in the test stores with Alerts to in-store personnel have seen a 50% reduction in frequency of OOSs and also in the percent of time products were unavailable.
  • OOS in the test stores were replenished in in one-third of the time versus their baseline prior to receiving alerts in store and also compared to the Control Stores. For example, yogurt SKUs have been replenished in 3 hours on average when alerted to OOS versus the previous 9-13 hours in the past.

The Out-of-Stock Inventory Management test is led by a joint task force consisting of Giant Eagle, the Food Marketing Institute (FMI), the University of Maryland, Ernst & Young, dozens of leading manufacturers, and Powershelf. The program was conducted from November 2015 through January 2016
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Unlike previous industry studies which emphasized the distribution chain, the test focused on the individual store level, where industry studies have shown nearly three-quarters of all out-of-stocks occur.


Ortega Chooses Digital Advertising for Mexican Brand Portfolio
Ortega is going all-in on digital advertising in 2016 with their new digital-only campaign, “If the Shell Fits.”

The producer of packaged Mexican foods and part of B&G Foods is launching the program to drive sales and awareness of its family of products to current and new purchasers by connecting Ortega with how people are eating in 2016: Namely, with a high level of personal customization. The digital campaign focuses on how Ortega can satisfy the unique tastes of six different family members with one family of products.

The digital campaign involves Facebook, Instagram and Pinterest.


Morrisons Moves to Drive Competitive and Customer-Facing Priorities
U.K.-based Wm Morrison Supermarkets PLC and Precima, a retail consulting and analytics firm specializing in shopper insights and customer-centric solutions, have signed a new multi-year agreement. Under the terms of the agreement, Precima will work with the retailer to listen and respond to what customers want from Morrisons.

“We listen hard to our customers and respond quickly wherever possible. We look forward to working with Precima  so that we can improve the shopping trip for our customers,” said Andy Atkinson, Group Marketing and Customer Director of Morrisons
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Brian Ross, President of Precima, said, “We have a unique ability to translate customer insights into truly differentiated and compelling marketing, trading and supplier solutions that drive noteworthy results. We’re eager to put our passion and expertise to work and we are confident that it will make a valuable contribution to Morrisons.”
 
Precima assists mid-to-large size businesses such as grocers with thousands of SKUs of products  in improving their competitive position across all facets of planning and operations from pricing optimization, promotional planning, assortment optimization, targeted marketing and supplier collaboration.


ProLogic Named as Top Ten Retail CRM Provider
ProLogic Retail Services, the largest 3rd-party provider of loyalty marketing solutions to independent grocers, has been named as a Top 10 Retail CRM Solution Provider by Retail CIO Outlook magazine. The selection was conducted by Retail CIO Outlook’s panel of industry experts and was awarded based on “evaluation of ProLogic Retail Services’ specialties in providing loyalty marketing programs, actionable shopper insights and multi-channel engagement.”
 
Katie William, Managing Editor of Retail CIO Outlook, said, “I congratulate ProLogic Retail Services on being recognized with the much coveted title and being a recipient of Top 10 Retail CRM Solution Providers 2016.  We are glad to showcase ProLogic Retail Services this year due to its continuing excellence in delivering top-notch technology driven solutions.”
 
Ross Ely, president and CEO of ProLogic Retail Services, said, “ProLogic is very pleased to receive this recognition from Retail CIO Outlook. “We are grateful for the award and appreciate the opportunity to serve independent grocers with industry-leading loyalty marketing solutions.”


GMDC Launches Portal for Technology Solutions
The Global Market Development Center is partnering with the Center for Advancing Retail & Technology (CART) to enable GMDC members to connect and collaborate easily with technology providers via an online portal. The platform allows GMDC members to find, learn about service, solution and innovations in retail, and connect with providers in its unique ecosystem.

The CART portal also features several resources such as case studies, papers and publications that can be searched and downloaded.

“With a surge in new technology in recent years, the CART platform gives our members the ability to quickly find and understand the latest tools that can support their business strategies and goals,” said, Patrick Spear, president and CEO, GMDC.

“Technology-fueled innovation is transforming and disrupting the retail industry, challenging industry participants to keep pace. CART is helping the retail industry connect with innovation,” said Gary Hawkins, CEO and founder of the organization that connects retailers, brand manufacturers, and solution providers via an online platform.

“GMDC realizes the importance of technology to retail today and is helping its members identify and deploy the best solutions for their business. Today’s fast-paced innovation rewards those who are nimble and the GMDC team is taking advantage of that to bring leading-edge capabilities to their members,” said Hawkins, who operates a technology platform for the National Grocers Association (NGA).

GMDC is a trade association focused on general merchandise and health/beauty/wellness products. It serves more than 600 retailers, wholesalers, suppliers and service/solution member companies.


Office Depot Deploys Web-Based Virtual Reality Solution
InContext Solutions is expanding its reach into the office supplies retail category through a collaboration with Office Depot. Leveraging InContext’s ShopperMX online 3D virtual reality (VR) platform, Office Depot will be able to internally drive in-store design and consumer experience innovation objectives through hyper-realistic simulations.

The proprietary VR technology allows retailers and consumer product goods (CPG) manufacturers to ideate, evaluate and activate new concepts within a virtual environment.

“Virtual reality will allow us the convenience and simplify the process of creating and testing concepts that resonate with shoppers,” said Stephanie Gutierrez, vice president of marketing for Office Depot. “Office Depot is investing in virtual reality technology as a priority to continue to innovate while better anticipating customer needs.”

Mark Hardy, CEO, InContext Solutions, said, “Virtual reality simulations help streamline processes, enabling better conceptualization, promotional planning and category management, while also creating a better way for manufacturers and stores to collaborate.”














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