How do merchandisers stock their shelves?
How do merchandisers stock their shelves?
I am doing a research project for my College Marketing Class and I have a bit of strange question, but a serious one nonetheless! How do the large retailers such as the Wal Marts & Home Depots know how to stock their shelves? I realize they have a floor plan or merchandising plan, but is their some sort of computer system (maybe the scanner they use for inventory) that tells them what Isle and shelf number the particular item will go on? Is there some sort of labeling system, where every single UPC from every device tells the stock personnel what Isle number, shelf number or section the merchandise goes? Do the large retailers break down their store by isles, sections or what?
Any input from a Store Manager of a larger retailer would be very appreciative!!
Thank you,
David
Best answer:
They actually do everything that you mentioned.
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2 Comments for How do merchandisers stock their shelves?
1. Shirley | April 10th, 2007 at 5:25 am
I will tell you that when it comes for instance, to the women’s cosmetic section, the very way the various brands of cosmetics appear on the shelves depends on how popular the brand is, and how much it sells. I heard once that certain manufacturers pay more for their brand to appear in the front at eye level. This may be true for shampoos and other beauty products as well.
As far as your question for the distribution of products, I think over a period of time, the stockers just know where the items go. They do have their bar codes, and inventory sheets to go by, but there is a system to it. Most shelf re-stocking goes on late at night, for instance in the big super markets, when the customer traffic is lower.
For the holidays, the stocking is moved around to accomodate the seasonal and fast selling products. The stores have to be flexible.
2. Cece | April 10th, 2007 at 6:23 am
Retailers like Wal-Mart use a system called RFID (radio frequency identification). It tracks the inventory being purchased and the rate at which it is purchased so the store operators know when and with how much they need to stock the shelves.
In terms of what products to stock and where on the shelf to place them, it’s all about advertising. All major manufacturers, (like Coke, P&G, Kraft, Mars, etc) have sales people who meet with retailers (like Wal-Mart, Target, Kmart) and negotiate shipment orders and shelf placement. They secure shelf space by gauranteeing an advertising plan. If a retailer knows that a product has $50 Million of advertising behind it, they will give it more favorable shelf space than a brand that has a lesser advertising campaign behind it.
Hope this helps.
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