In June, TNG attended the GMDC Conference. Here’s what we learned…
It was no surprise to us or anyone that traditional retail is certainly challenged. Retailers that have not responded to this ‘new world’ have definitely felt the sting, if not utter decimation (think Toys R Us). Manufacturers are also under pressure as consumer tastes have and are changing at a rapid pace. The move to health, wellness, minimal ingredient, natural and less processed foods have left some reeling. The center store is under attack; the front-end is under attack! There are stressors everywhere.
One presentation - “The Future of Retail: Cause for Concern or Optimism?” stated:“With advancements in logistics and next-day delivery possible, in-store retail is naturally becoming less about inventory and more about providing intermediary and indispensable, location-based services that result in sales, crafting new relationships with customers and capturing new data.” Retailers are working toward transforming to enhance the shopper experience and this is a must! However, for the manufacturer, being ‘in-stock’ is even more important today than ever, because the shopper today absolutely expects it.
We feel, while there are stressors, there are also opportunities.
In the uncertain landscape, our conversations and strategies are shifting. We are committed to leading the way, working along side our customers, forging new solutions together.
Working together, we will create new approaches. Consider:
1. Replenishment from in-store service visits is becoming more of an issue. Due to capacity issues, many manufacturers traveling direct to store (DSD) by ‘traditional’ means are getting the boot. That leaves them going through retailer’s warehouses, relying on retail labor to have products displayed.
2. Many companies are looking for more frequent / less in-store hours when it comes to merchandising.
3. Manufacturers are open to collaboration now more than ever. Collaboration - in the sense of: how do I get my product in front of consumers willing to buy at a cost that is sustainable.
4. Same day delivery and set-up is a HUGE differentiator for TNG vs. a typical competitor (MSO – Merchandising Service Organization).
5. Hybrid DSD model is of interest to most of the companies looking for services (buy/sell relationship is between MFR and retailer).
TNG recognizes that our customers seek leadership in these changing times. We invite you to talk with us. Together, we are stronger. We see possibilities as opportunities for new success.