A major Canadian grocery retailer decided to delist all Traditionally Raised (TR) Chicken SKUs due to low sales and high shrink. Which seemed like pretty bad news for the retailer’s chicken supplier, who’d lose $3.5 million in annual sales thanks to the change. So the supplier turned to dunnhumby to find out what customers really want — and how to give it to them.
The chicken supplier used dunnhumby’s Shop tool to analyze sales of TR chicken from a customer perspective and learned that not only did this type of chicken appeal to upmarket customers, but it was also a great fit for the retailer’s loyal customers. Data also showed that sales were not evenly distributed across all stores: half of the retailer’s stores accounted for about 80% of TR chicken sales, while the rest only had $10K of annual sales per store.
The insight was powerful enough to convince the retailer to keep all six SKUs of TR chicken on the shelves of the top 77 stores that accounted for 80% of sales. Case pack size was reduced to enable smaller volume stores to sell the top 3 SKUs while reducing shrink.