Implement these five proven strategies to transform your traditional store into the perfect store, maximizing sales and customer satisfaction.
Reaching it might seem unattainable, especially given the dynamic nature of retail: customers coming and going, products constantly shifting, and frequent staff turnover. However, successful case studies and implementations show that achieving this ideal is possible by following five fundamental pillars.
Shelf Availability: The First Pillar
Product availability is crucial. Recent studies show retailers lose approximately 4% of potential sales when customers encounter out-of-stock items. Implementing simple but effective processes, such as regular walks to identify stockouts and automatically generating replenishment tasks, can significantly improve customer satisfaction and boost sales.
Planogram Compliance: Structuring the Perfect Store
Strategic product placement is no coincidence. Nielsen’s The Smart Shelf study reveals that the correct design and implementation of planograms can increase sales by up to 6.8%. In the perfect store, where customers spend an average of less than 15 seconds looking at a shelf to decide their purchase, ensuring products are in their designated spots is critical.
Using a management tool at the SKU level helps monitor planogram compliance, ensuring every product is in its assigned location. This ensures maximum profitability per square meter in your perfect store.
Correct Pricing: An Essential Element
Correct pricing is fundamental. At the corporate level, prices can be adjusted directly and immediately in internal systems with just one click. However, in-store execution is far from automatic.
To achieve the perfect store, it’s essential to establish standardized and structured implementation processes and improve communication between stores and headquarters. This ensures that price changes are executed effectively and consistently across all locations.
Effective Campaigns and Promotions: Driving the Perfect Store
Well-executed promotions are key to the perfect store. They can increase sales by up to 20%. However, studies show that only 41% of stores properly implement scheduled campaigns. This creates uncertainty around the validity of metrics: How can you evaluate the ROI of a campaign or make future decisions if the data is inaccurate?
Precise measurement of campaign execution is crucial to optimizing promotional strategies and ensuring the desired outcomes.
Quality and Shrinkage Control: Ensuring the Perfect Store
The perfect store requires rigorous quality control. Managing quality and reducing shrinkage is particularly critical in perishable categories. Implementing effective quality control protocols and FEFO (First Expires, First Out) rotation is fundamental to maintaining profitability and customer satisfaction. By leveraging analytics and AI-based tasks, stores can proactively review products nearing expiration, preventing unnecessary waste and supporting profitability.
Technology: A Key Ally
Leveraging technology is essential to implementing these pillars effectively and bringing your retail business closer to the perfect store. Tools like Frogmi simplifies execution and tracking processes. Unlike most solutions on the market, Frogmi allows task assignments at the SKU/store level and enables issue reporting directly from the sales floor. Each store receives only the tasks relevant to its specific needs.
The platform offers precise SKU-level management, controlling product availability, pricing, promotions, and quality. It also ensures real-time visibility into in-store execution, enabling timely corrective actions and moving you closer to the perfect store daily.
Proven Results with Frogmi
Our clients have achieved significant results using Frogmi, including:
- 10%+ increase in product availability
- 17% reduction in food waste
- 5x improvement in campaign execution levels
- 72% decrease in price change processing time
The perfect store is not a destination but a journey of continuous improvement. To learn more about it, download our e-book: “5 Pillars to Getting Closer to the Perfect Store.”
