One of the greatest challenges the wholesale industry is facing is the cost-of-living crisis and as inflationary pressures rise, SalesOut is here to help wholesalers, suppliers and partners make the best decisions in a rapidly changing market. As an IRI company, SalesOut combines the scale and expertise of a global tech business, with a deep understanding of the wholesale industry. Now more than ever, having an end-to-end view of your business is of paramount importance to succeed.
SalesOut is helping wholesalers understand PMP rationalisation, with its latest findings demonstrating why it is important for wholesalers to optimise the right PMP range at the right price. UK shoppers are making significant and rapidly evolving changes to buying habits in reaction to the cost inflation challenge and as price remains at the forefront of their minds, it’s more important than ever to get the price right. Consumers will be looking for reassurance that they are receiving good value for money and SalesOut want to help wholesalers navigate this for their retailer customers.
Marcus Vallance, head of Wholesale and Foodservice at IRI explains: “Providing wholesalers with access to the breadth and range of knowledge that we can offer, in easily accessible formats, allows them to use this data and share it within their business, ensuring they go on to make better informed decisions.”
Latest data from SalesOut shows that categories such as cereals and soft drinks with a higher share of PMPs are in year-on-year decline, and categories with a lower share of PMPs are in growth year-on-year, suggesting that maybe offering too many PMPs is hindering growth. Therefore, wholesalers with categories that have a higher share of PMPs could benefit in reducing this, to make sure they have the right range at the right price.
Vallance continues, “Wholesalers should look to add lower priced and single pack PMPs in alcohol, baby, beverages and non-food categories, as this would offer customers a smaller and cheaper PMP option. With current inflation pressures, and PMPs still being an important part of a wholesaler’s range, offering a cheaper and smaller pack size in these categories should drop the average price and improve performance.
“Looking to optimise PMP ranges in the categories with a higher share of these SKUs can also help wholesalers to improve sales and encourage growth. Offering fewer PMP options at the right price could encourage new and existing customers to purchase and will avoid confusion.”
SalesOut can offer a range of bespoke packages which include pricing analysis and assortment optimisation. Its team can calculate the elasticity of categories or brands to maximise the positive impact of price changes and can analyse your category’s range and recommend the most effective combination of products to drive growth. This allows SalesOut to demonstrate which PMP lines feature in your optimal range.
For more information, please contact: Salesout.Supplier@IRIworldwide.com
Source: IRI SalesOut Retail Wholesale (UK) data L52we vs. YA