The Co-op is launching a major shake-up on the shelves as it introduces localised ranges in all 2,500 of its convenience stores.
The retailer has appointed JDA Software Group, which has previously overseen range and layout changes at retailers including Asda, Sainsbury’s and Tesco, for the overhaul. The move is part of its Renewal strategy under new CEO Steve Murrells.
Under the proposed changes, JDA will use sales data to better target the range carried by local Co-ops to surrounding populations, based on factors including the prosperity of the area, the number of families, proportion of ethnic minorities and how urban or rural the stores are.
The Grocer understands the move could affect the listing of many products in areas such as fresh, ambient, cereals and condiments, where sales are said to have been at an “extremely low rate”.
However, the Co-op claims it will also open up new opportunities for suppliers that remain listed to have a much more targeted customer base.
Jason Shorrock, VP of retail strategy EMEA at JDA, said stores would be grouped into clusters of 10 to 100, though he said in some cases certain products, such as high-end meats, might be stocked on a store-by-store basis. “Some suppliers may find that they have products delisted and for others they will be listed but it will be far more tailored to the local area,” he said.
“The Co-op has indicated that it has a limited and inflexible stock level including some areas, such as condiments, where there are extremely low levels of sale.”
Store layouts will also change dependent on local sales strengths. Shorrock said other retailers using JDA’s planograms and retail transformation programmes had achieved sales uplifts in certain categories of up to 30%, with several retailers achieving uplifts of 1% in total directly as a result.
“I’m very confident that this will be very successful,” he said.
The move comes after the Co-op signed a contract with software provider SAP in December to provide it with a new IT infrastructure. “JDA’s best-in-class space planning and assortment management solutions will play a key role in our next phase of renewing the Co-op, as we continue to invest in the business. Localised store ranges and improved stock levels will allow us to further our growth and ensure that our customers feel confident their local store can meet their grocery shopping needs,” said Co-op retail chief information officer Cheryl Marshall.
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