By Sarah Sheffield, Entertainment Category Manager, eXPD8
The importance of day one compliance in implementation has long been a focus for retailers and suppliers alike with as much as 31% of week 1 sales being achieved on launch day. But with all the focus on launch day, is there a missed opportunity by not investing in replenishment across the rest of the week?
eXPD8 have seen average Monday launch day compliance rates of 95%+, drop to as little as 56% by Thursday and fall to an average of 43% by Friday. This represents a potential loss of thousands of pounds worth of sales along with wasted cardboard and space.
We believe this data warrants a review of in store engagement and briefing on the longevity of a promotion and the importance of keeping it front of mind throughout the launch week.
From experience, one way to place focus on the mid-week period is to introduce an additional promotional release on the Wednesday after a Monday launch. For example, releasing a cross-category promotional unit on the Wednesday provides the opportunity to re-stock and helps to keep the release front of mind for stores and customers throughout the week. Cross-category units promoting licensed, consumer products relating to the title, can be a successful way of maintaining awareness and driving additional DVD sales.
Following day one, the next sales peak occurs at the weekend. Our experience has shown that any units that haven’t been replenished often enough by the stores, are liable to be removed from the shop floor as stocks are depleted. In order to capitalise on this sales peak, we recommend replenishment to maintain longevity of your paid-for space on the shop floor in order to maximise sales when the footfall is at its greatest.
Since 2012, eXPD8 have seen an increase in investment in replenishment calls. Last year, approximately 50% of set up calls for several of the biggest launches also received investment in replenishment calls and this percentage has continued to rise. eXPD8 have found that over ten thousand set up calls this year have not invested in replenishment meaning that if a unit typically drops to 43% compliant by the end of the week the supplier and retailer are missing valuable weekend trade.
Engaging store colleagues can be another successful route to ensuring a new release title is nurtured throughout the week to achieve its full potential. Store communications to advise and engage colleagues typically focus on day one implementation with minimal focus on mid-week replenishment of the biggest titles of that week. With a 52% drop in compliance by Friday, a mid-week engagement and replenishment plan could help to boost compliance and therefore sales prior to the weekend footfall.
Providing mid-week replenishment is especially crucial during the summer holidays when parents are likely to be in store with their children more often, looking for entertainment solutions.
All of this relies on an efficient supply chain to consistently push stock into store to aid replenishment and ultimately drive sales throughout the entire launch week.
A company such as eXPD8 is able to add value and longevity to the life cycle of in-store promotions and we believe the industry can do more to harness the power of mid-week replenishment in order to maximise sales.