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Study highlights ‘missing’ £430million return from POP
Monday 17 December 2007
POPAI has published the results of a two-year study into the P-O-P supply chain examining the processes that are involved in successfully implementing P-O-P campaigns at the facing.
Headline findings from the research suggest that poor understanding and management of P-O-P campaigns could be costing retailers and brands up to £400 million in lost sales per annum.
The study polled 60 managers, drawn from each of the top four supermarkets and selected from the top 700 stores in the UK. These stores represent over half of the UK grocery sales.
The research identified that the industry as a whole would typically expect to lose 20% of potential non-promoted sales across 25% of all stores equating to 5% of total sales. But when it came to the impact that poorly executed promotional campaigns had on sales, the figure was even more significant rising to a 66.5% loss of sales in 30% of all stores and a 20% loss in additional sales overall.
IRI site figures estimate the total grocery turnover in the UK to be around £26 billion with the percentage on promotion equating to around 28.5%. On this basis the estimated loss from poor compliance is:
Non-promoted sales £242 M
Promoted sales £192 M
Total £434 M
Commenting on the reports’ findings, John Leventhall, Space Planning Manager with Woolworths, said: “The initial results are fascinating and reveal some interesting insights into the differing perceptions of those people involved in the journey of P-O-P from category to customer. The understanding that the report will give to those responsible for managing the complex process of P-O-P delivery will undoubtedly help towards better execution on future campaigns.”
The report is FREE to members of POPAI and £149 to non-members and is available to download from the POPAI website. Applications can also be made direct to the POPAI Office.
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