Several weeks ago we reminded you, our readers, to get aggressive about removing the lowest selling items from your store and many of you have begun that cash saving process. One reader asked, “I see Fruit Loops on my bottom 50 list. My grocery wholesaler said this product is a high volume seller and I think it should be selling too. Do I really want to dump that product?”
As you review your bottom 50 each week, look very closely at the “size” of the product that is not moving. Then look at your products. It’s important to see if other sizes of that product are moving or not.
This particular company looked more closely and found they were stocking three different sizes of Fruit Loops. Why? Does size really matter when it comes to cereal?
This is a c-store, not a Super Wal-Mart. You have limited space and it’s a safe assumption that most of your customers aren’t coming in to purchase a box of cereal, right? So you have to ask yourself, “Do we really need three different sizes of each brand of cereal on the shelf?”
Picture your hurried customer who has to grab a box of Fruit Loops. He probably does not care if you have one size or ten size boxes of cereal. He’s on a mission to pick up cereal and milk on the way home from work. He couldn’t care less if the box is 12.2 oz. or 16 oz. This guy will be smiling all the way home, just proud he remembered to stop and pick up the two items his wife had asked for; secure in the knowledge that he won’t be verbally castrated for forgetting again. (Not that this has ever happened in my life).
This month cereal makers will be reducing their contents per box in order to get the retail prices down, so be wary of new inventory attempting to creep into your store. The bottom line: Find the size of the most popular items using the reports your back office software provides. Stock the most popular size of grocery items that are selling and free up space in the store for high volume goods.
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