Merchandising is an integral part of c-store operations. To better understand effective merchandising habits, CStore Decisions reached out to Alan Adato, senior merchandising and procurement manager, Yesway, which has 400-plus stores in nine states and operates a successful private-label program.
CStore Decisions (CSD): How do you decide which private-label products to stock in your stores?
Alan Adato (AA): For private label, we are always looking for the next opportunity that will drive exceptionally strong sales and margins across the store. Many of those opportunities are in the center store and packaged beverage categories. Other categories like automotive can also be beneficial.
Another aspect for private label is identifying an item that can be merchandised that doesn’t compete with a comparable item. This allows us to introduce our private-label item with little or no distraction.
When considering private label, it is important for the retailer to understand they will need to commit to and order a minimum amount of product from a supplier. For example, a supplier requires a minimum of 10,000 units a year to be purchased. Is the retailer able to commit to such a number? Is it too much inventory to sell through in a reasonable amount of time? These questions and more will be vetted before considering which private-label items you will stock.
CSD: How did you decide on a private-label strategy, and where can others looking to offer private label start?
AA: Our CEO expressed interest in private label when the company opened its first stores in 2015. He wanted to offer private label and introduce it as quickly as possible. We then partnered with Daymon, a private-label consulting firm, to help us introduce a variety of private-label items in a short amount of time. For those looking to start their own private-label program, we suggest working with a private-label consultant … or start networking with suppliers who focus on providing private-label products. ECRM and RangeMe are other great resources that can help retailers connect with a multitude of suppliers who produce private-label items.
CSD: What are effective merchandising strategies for private label to increase visibility and sales?
AA: A private-label program must have strong merchandising strategies for it to be successful. But first, you need to commit to private label and make it a priority for your stores. Elevate your private-label brand where customers can quickly seek them out. Do this through effective branding of your private-label packaging, providing your customers competitive pricing and promotions, and strategically merchandising and positioning private-label products in your stores.
Effective merchandising can be done by using an end cap or other displays that exclusively display your private-label items. By focusing on the entire program through packaging, pricing and merchandising, your customers will become loyal to your private-label program.
CSD: What technology do you use to improve merchandising efforts?
AA: One technology we provide our customers is a rewards program where private-label items are offered at an even greater discount than our everyday price. But we also use a less tech-savvy approach for those customers who do not participate in our rewards program. Shelf tags are posted across the store in front of our private-label items to promote our everyday prices, but we also include the rewards price so customers can understand the cost-saving benefits of joining our rewards program. …
CSD: How do you address merchandising challenges?
AA: Merchandising challenges come in many shapes and sizes. Challenges can be anything from supplier issues that delay product from getting to our stores, to a private-label item not selling well. We take each challenge head on by addressing the issue and resolving it as swiftly as possible to make the program even stronger. At the end of the day, we learn from each challenge so it does not happen again, or we have a plan in place to address it even more strategically.
