The Supply Side: Top reasons shoppers pass over products at retail stores

Editor’s note: The Supply Side section of Talk Business & Politics focuses on the companies, organizations, issues and individuals engaged in providing products and services to retailers. The Supply Side is managed by Talk Business & Politics and sponsored by Propak Logistics.

With more than 150,000 items in a typical Walmart U.S. store or the 7 to 9 million products on the mega retailer’s website, it’s no wonder some suppliers experience less than stellar sales with the world’s largest retailer.

Tanya Lewis of Palm Harbor, Fla., knows how difficult it is for smaller suppliers to compete with the giants of Proctor & Gamble or SE Johnson in her floor cleaning category. Her Green Glider floor cleaning solution – an absorbable, washable and reusable mop pad that will fit any Swifter or regular sponge mop handle – made its way into 300 Walmart store locations earlier this year, but she’s competing with the various Swifter products that dominate the aisle where her product is located. 

Lewis admits there have been challenges along the journey to the shelf and then getting into customer’s hands, but she’s optimistic her time and effort will pay dividends. She said the days can be long for a single mom, but Lewis saud “there is no Plan B.”

“I just want consumers to know there is a $9.98 alternative to costly disposable mop pads and it’s finally on the shelf at some 300 Wal-Mart stores and hopefully coming to more soon,” Lewis said.

Dr. Chris Medenwald, a research writer for Fayetteville-based Field Agent, noted in his recent blog that there are several reasons why consumers might not buy retail products despite attractive packaging and value pricing. The top reason consumers don’t buy a product is that it’s out of stock. Though retailers like Wal-Mart continue work on this problem, RIS News reports retailers lose as much as $93 billion a year because products are out-of-stock. Wal-Mart executives admit out of stocks are a $1 billion opportunity for higher sales in a year’s time.

Experts agree that tracking product replenishment and daily sales on Wal-Mart’s sales portal RetailLink is a good way to stay on top of potential inventory shortfalls. 

Medenwald said other times products could be available, but they’re misplaced in stores. A product that’s supposed to be on the main aisle is languishing on aisle 17. One study found that only 41% of store displays fully complied with company specifications. The experts say it’s critical to walk the stores or contract that service out to ensure the product is correctly displayed. Buyers have the say on what products get the most shelf space.

Lewis found her mop head was placed near the bottom shelf in at least one store and it was not placed next to other mops, but with cleaning solutions. Lewis’ product was hard to spot given that it was only one item, somewhat lost in a sea of Swifter products. Medenwald said that’s a problem, being placed in hard to see or reach spots on the shelf.

Jan Long, CEO of Mr. Canary, also knows how challenging it can be to have one or two products in hundreds of Walmart Stores and make sure the product is visible and displayed in the correct location. She told Talk Business & Politics in May that her store count was going to 2,900 this fall, up from 2,700. Long said she was excited to be working with a new buyer on a Mother’s Day promotion. She was grateful for the opportunity to have a special promotion, but it ended up being somewhat disappointing because the product was displayed on end caps and not in its usual shelf space. She said some stores didn’t get the product out in time for Mother’s Day. Long also said the product has sometimes wound up placed on the top shelf at some stores, and the typical customer for her turnkey bird feeders are seniors, mostly women.

Despite the challenges Long, said she is grateful to be Wal-Mart supplier for several years now.

“Doing business with Wal-Mart is always an adventure, but everyone on my team continues to help me and the business is growing. My buyer team is now working with me to add another product after sharing my concerns about being on the top shelf which is nearly unreachable for smaller ladies – a big user of my bird feeders. The buyer told me the top shelves were being lowered this next year and my products will be lowered on the display modular. That’s just one example of how willing Wal-Mart has been to work with me,” Long said.

Experts often say that having a good relationship with the buyer team is critical to getting the right shelf placement. Medenwald said suppliers have to be ensure that their in-store marketing is properly executed. He said brands spend as much as $1 trillion on in-store advertising and other efforts to shape the in-store customer experience. He said it’s important to ensure a marketing plan is making money and not just spending it and that the retailer’s execution of that display, sign, and coupon dispenser is on target.

Another issue raised by Medenwald is that shoppers may see a wrong price. He said shoppers can be remarkably sensitive about price, and a seemingly small pricing mistake can cost a brand sales because the shopper may think that they don’t want to spend that much. He said the price misconception could stick in shoppers’ minds giving them the wrong idea and resulting in lost future sales.

Lastly, Medenwald said there will likely always be rival products that suppliers must compete with on price, quality and in-store placement. Like with Lewis, Swifter owns prime store real estate space and that is not likely to change, so there is limited shelf space for her Green Glider, no matter how great it works or how much value it offers.

Medenwald said small suppliers aren’t defenseless now that mobile audits like those with Field Agent are becoming mainstream.

“Mobile audits are a fast, convenient, cost-effective way to get closer to your products, customers, and retail operations,” he said.