Viewpoints

Game Changer for General Merchandise in 2013?

RSS

The most recent general merchandise exploits read like a mystery thriller. Sort of like “The Da Vinci Code” with a GM spin.

A squeezed GM sector in the food channel, accounting for more than $30B in annual sales, has been challenged by other types of retailers battling for market share. 

Food retailers need a better way to track and measure industrywide  performance to foster growth, because the existing system is outdated.

The question has been, how can a new code be unlocked?

Enter Nielsen, which it turns out had been keeping a repository of close to 30 million GM SKUs, but didn’t have a standard category hierarchy to interpret the data.

What followed was a partnership among Global Market Development Center (GMDC), Nielsen and Radian to build and test a new analytics tool to help boost GM category measurement and management.

That tool, which will provide category-level syndicated sales data, is now in the final stages of testing and preparation and will be released by GMDC in the first quarter of 2013. (Click here for more details.)

This could be a watershed event for the GM sector. The tool will enable uniformity in how the industry looks at a wide range of GM categories, which historically were coded differently by various retailers, noted Mark Deuschle, GMDC’s chief marketing officer and vice president of business  development.

The new direction provides a common hierarchy and will enable benchmarking, more collaborative relationships between trading partners, and more informed decisions about shelf space.

This will help bring more alignment between GM and Center Store in terms of standards of measurements.

Read more: GM Data Portal to Launch in Q1

Most important, better analytics could produce more effective GM strategies for food retailers.

It’s extremely rare to have this kind of new opportunity in a long-established segment of the business. The payoff, however, won’t happen unless the tool is taken seriously.

Supermarkets and their trading partners need to become familiar with this new initiative by giving it a complete examination to learn the benefits.

Otherwise, the biggest mystery will be why the industry didn’t try to capitalize on the opportunity.

Suggested Categories More from Supermarketnews

 

Discuss this Blog Entry 0

Post new comment
or to use your Supermarket News ID
Contributors

David Orgel

David Orgel is executive director, content & user engagement, of Supermarket News (SN) and its website, SupermarketNews.com. Orgel delivers his opinions on industry trends through a bi-weekly...

Jon Springer

Jon Springer has been writing about food, food retailers and food retailing for more than 10 years, and is in his second tour of duty with Supermarket News. His prior experience includes covering the...
What's Viewpoints?

In their Viewpoints columns, SN editors give their perspectives on current industry issues.

Blog Archive
Penton Media Food Group and Related Sites

Sponsored Introduction Continue on to (or wait seconds) ×