November 10, 2023
The ghost of retail, A new conversation, and Nike's back on the shelf.
Hi there,
Welcome to the June edition of bops newsletter.
Today we dive into the mysterious ghost of retail, and how consumer brands of all sizes are haunted by it.
Enjoy!
_____
Last week, the bops team made a stop at our very first Specialty Food Association show in NYC at the Javits Center.
We didn't just indulge in sampling award-winning snacks; we also had the opportunity to sit down with one of the brands for a mini-interview to uncover the valuable lessons they learned from selling their products at over 4,500 Walmart doors.
We understand you're pressed for time, so let's cut to the chase and share the most important insight from our conversation:
The journey of a consumer brand into retail is full of unexpected surprises.
Unlike brands that sell directly to consumers, brands selling through retail face the additional hurdle of being at least one step away from the consumer.
So, the need to keep an eye on different data points to make sure they are effectively managing sales and inventory is that much more crucial.
Why is this so important?
Well, the primary reason is to ensure that the product is physically available on the shelf when consumers want to buy it.
But it’s not that simple.
You see, consumer brands, regardless of their size, are often plagued by the ghost of retail — a haunting presence in the world of consumer goods.
Phantom inventory is the result of a mismatch in the inventory that is actually available at a store on the shelf and the existing inventory shown in the inventory system at the retail store.
Now, why does this matter?
Phantom inventory can be deceptive, misrepresenting the inventory levels in the stockroom or warehouse.
As a result, when retail teams attempt to restock the shelves, they may not find the products they need.
The larger the store and the greater the number of different SKUs it carries, the more challenging it becomes for brands to identify and prevent phantom inventory.
And here's the kicker: Phantom inventory never translates into actual sales.
Store managers and retail buyers may mistakenly assume that a product isn't selling well and decide against reordering it or even carrying it in the future!
At the end of the day, consumer brands exist to serve their customers.
However, it's impossible to do that effectively when they are constantly haunted by the ghost of retail.
_____
.png)
This month, we finalized our newest partnership with Matt Fifer and Conversations On Retail, a one-of-a-kind media platform based out of Bentonville, Arkansas.
What does this mean?
Starting in July, we will be partnering on exciting projects, including our podcast, CPFR 2.0, where you’ll hear hard-earned insights and lessons from some of the most visionary leaders across the consumer goods supply chain.
Stay tuned for more info on the 1st episode!
Read our announcement here.
_____
Beginning in 2017, Nike began severing ties with its wholesale partners, betting heavily on its direct-to-consumer channel.
Having established a strong DTC business, particularly during the pandemic, Nike is now strategically re-establishing wholesale relationships with some retailers and sellers, including Macy’s and DSW.
Our take: Nike's re-engagement with wholesalers will have a renewed focus on leveraging valuable customer data and insights from its partners to create a more personalized experience for consumers.
Read the entire article here.
_____
.png)
Like what you read in this newsletter?
Don’t forget to forward it to your friends so they can stay up-to-date with the latest trends and resources from the world of consumer goods.
Till next month,
bops team
.svg)
