Tesco UK - Self facing shelves? Here's an interesting cost saving idea.
24 February 2014
Shelf Facing Tech...
The greatest cost to a retailer is labour, people cost money - wages, training, NI contributions, sick pay, holidays etc etc.
However a plastic unit allowing a customer to take a box of cereal bars, only for the next box to appear at the front of the shelf? That both works for the retailer and the customer with a 'one off' cost for equipment attached. No days off!
How does it work?
A couple of Vines showcase it well -
The units are spring loaded and allow product to be merchandised within the shelf, once a box is taken then the next one automatically comes to the front. It's similar to the equipment used on Cigarettes / Herbs&Spices.
The benefit to the retailer is that shelves on the nominated categories remain 'full and faced' which reduces the need for colleagues on the shop floor. Similarly, the 'rumble' (management hour where they tidy the shop) is reduced too.
Customers benefit as they are able to shop 'full' and tidy fixtures, availability 'looks better' and this will ideally drive spend upwards. Its certainly more appealing than wading through empty boxes of cardboard.
There are other initiatives in place too, brackets are used for bottles of Oil for example, these are lifted up from the shelf and used to pull bottles to the front of the shelf.
Bottles / Oils looked really presentable at 12:30pm on a busy Saturday when the store was visited. Brackets significantly reducing the time taken to tidy the shelves.
Fresh foods has 'roll track' shelving which allows remaining products to slide to the front when one is picked up. This helps merchandising on fresh foods and limits wastage given customers can always see the products in stock.
Further initiatives are planned too, products that are not easily replenished direct from a shelf ready box, such as Crisps will be banded (have paper tied around them) which is removed once the case (12 packs) is replenished in the self facing unit. Reducing time taken to replenish.
It's likely there will be cost savings as a result of this, despite stores not receiving time to 'rumble' as part of their budgets. However it will reduce time taken to tidy the store, particularly on categories with a high SKU count - Health & Beauty e.g.
Tesco should be wary though, limiting cost is helpful but customers expect staff on the shop floor in the same way they expect fair pricing, full shelves and a clean store.
CAPEX should be relatively low regarding the equipment however durability is another concern, particularly given the rigours of modern retail.
The price campaign has commenced though, today (24/2) sees the first price offensive against the discounters. A 'prices down and staying down' on 9 key Fruit & Vegetable lines.
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A rumoured price offensive from Tesco moved a step nearer today, a 'down and staying down' Produce price campaign was launched.
From the Grocery Insight newsletter archive, first sent to subscribers on 24 February 2014. Steve now writes at read.groceryinsight.com. See also the blog archive and briefings.