Monday, September 16, 2013

Inventory Management

In managing a large grocery store like Giant Eagle, inventory management requires more than simply keeping enough of all the items in reserve.Whether in charge of a small, individually-owned grocery store or one that is part of a larger chain, managing a grocery store successfully involves ensuring that the store runs smoothly, that items are priced competitively and that customers are satisfied. It is important to determine whether the cost of keeping an inventory on board is worth keeping a customer.  Merchandising is equally important,, Commonly purchased items, such as milk and bread, should be placed near the back of the store to require customers to pass by other product to get to them, usually adding items to their carts on the way. Work with manufacturers to secure discounts on popular products in exchange for prime space in the store. Giant Eagle wants to do a better job of catering to people who shop at each of its stores. To make better choices about which products to stock, the company plans to use an automated system called ''behavioral cluster planning'' starting later this year. The computerized system uses local demographics, customer data, sales patterns and store sizes and locations to quickly determine which products to stock, how much to order, how to price them and where to place them in the stores, said Stephanie White, a vice president at Giant Eagle. The new system lets store officials analyze customer data faster and easier, said Dan Schnorr, Giant Eagle's senior director of retail-based planning.

Schnorr say “ While Heinz, which is made in Pittsburgh, is the premier brand in Giant Eagle's Pittsburgh area stores, Hunt's has a following throughout Northeast Ohio, and thus has a larger presence on the retailer's store shelves in these areas” The focus on tailoring grocery content takes on more significance as consumers are likely to be pickier about the foods they buy this year, according to a new survey by the NPD Group. Government forecasts project greater food price inflation this year, the survey found. Supermarket food prices peaked in 2008, dropped in 2009 and started to rise again in the last months of 2010, NPD said.

1 comment:

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