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Case Studies

Merchandize product ranges to optimize sales

Shelf Review Quenches Beer And Ale Drinkers’ Thirst

In 2011, a major UK grocery retailer engaged dunnhumby to provide more insight into its beer and ale sales. In addition to driving penetration into the aisle and uncovering new ways for customers to engage with the products, the retailer wanted to focus more on key premium categories, revitalizing offerings to drive increased sales.

Armed with the insight that flavor is the number one driver for selection, brand and packaging plays less of a role than previously thought, and that the affluence and location of the buyer directly impacts sales, dunnhumby influenced a number of key decisions.

The action

Based on dunnhumby Shelf Review revelations about the decisioning of beer customers, the retailer opted to begin merchandizing by format, separating cans from bottles on the shelves. The flavor of the ciders and ales took center stage in merchandizing, making it easy for customers to find a beverage to suit their tastes. Adding an affluence and regional overlay also helped drive the right products to the right consumers. Giving customers what they want, when and how they want it — that’s the power of customer science.

The result

  • Sales growth: Overall total beer sales grew 8.5%, and 11.2% year over year
  • Customers increased 5.6%
  • Focus on premium ale: Customers are buying more upmarket ales, buying 34% more year over year
  • New products rule: Outperformed the delisted lines
  • Increased loyalty: Research indicates loyalty has grown by 1.4%, and loyal customers are spending 11.2% more year over year

Shelf Review was invaluable in understanding the needs of the shopper, allowing us to make category recommendations with the shopper at the heart of the changes.

Shopper Marketing Manager, UK Grocery Retailer