NACS Show 2021 Recap – Bruegmann’s C-Store Lands In Chicago
The 2021 NACS Show kicked off on October 5th at McCormick Place in Chicago, IL. We were present with the full USA Division sales, product & corporate staff, displaying our full portfolio of merchandising solutions. Our strategic partners of Presence From Innovation (PFI), makers of the C21 Cooler Shelving System; UnoRetail, Latin America strategic partner; Hanshow, a LED display solutions provider; and our distributor partners at Equipment Resources and Rock Solid Distribution were present at the booth to support our initiative of becoming the global leader in retail merchandising.
This was our most ambitious trade show execution yet, as the team assembled a full Convenience Store replica to bring its solutions to life in a real retail environment. The countless hours of planning and coordination resulted in an extremely successful trade show, thus facilitating brand awareness and strengthening relationships with retailers big & small.
A huge thank you goes out to our Bruegmann staff who assisted in making this the best NACS Show ever for the company. Additionally, we truly appreciate all of you who took the time to stop by our booth and speak with our sales staff. We are planning to surpass this success at the next show in Las Vegas in 2022!
December 2020
Merchandising Solutions To Ensure Excellent Execution
In-store merchandising execution is one of the top challenges for retailers. Bruegmann has the merchandising solutions to ensure excellent execution.
Current Situation
In today’s complex retail environment, in-store merchandising execution can often be challenging for store associates to carry out efficiently. Some common day-to-day challenges for store associates include issues with front facing and restocking items throughout the day, working with damaged or malfunctioning merchandising equipment and/or difficult-to-use equipment not optimized for increasing frequency of planogram resets.
Poor Merchandising Execution Is Costly
Poor merchandising execution costs retailers sales. In fact, over 50% of retailers lose 5–10% of their sales to poor in-store execution, and more than one-quarter (26%) lose 10–15% of their sales, according to Coresight Research’s October 2019 survey of 200 global retail decision-makers (LINK to report).
Consumer Demand Is Clear
Consumers expect their shopping experience to be convenient. In fact, 9 in 10 shoppers back out of a purchase if it is inconvenient to them, according to a survey of 2,949 US adults conducted by the NRF in October 2019. Furthermore, 7 in 10 shoppers cited leaving a store empty-handed because they could not find what they wanted, according to iVend’s 2018 survey of 2,250 global consumers.
Reasons and Importance of Convenience & Reasons For Leaving Store Empty Handed
Effective Retail Merchandising Solutions and Execution Is Key
Effective retail merchandising execution not only translates to increases in sales and basket size, but also has a substantial impact on retailers’ revenues. Effective merchandising equipment can help retailers drive sales and save costs through the following:
Enhanced product presentation enabling a better shopping experience
Increased sales through better presentation and shopper acceptance
Re-allocation of labor time and cost from tedious tasks such as fronting and re-stocking, to more value-added customer facing tasks
Adjusting of retail merchandising planograms and product assortment to localized situations quickly and efficiently with flexible shelf merchandising systems
Increased sales conversion emerged as the top benefit of effective retail merchandising, with over half of respondents (51%) citing it at as a benefit. Benefit ranking:
Increased sales conversion
Ability to create effective localized events/promotions
Improved planning efficiency
Reduced dependence on or the cost of third-party audits to check compliance
Increased basket size
Increased store productivity through better execution
Ability to better meet shopper demand
Better merchandising compliance across stores
Greater level of store associate engagement
Bruegmann Merchandising Solutions Converts Shoppers Into Buyers
The Bruegmann Group designs, develops and manufactures high quality retail merchandising products and solutions in the following 3 areas that deliver an innovative differentiation to retailers and brands:
Fronting and Organization: Keeping shelves well organized and products fronted and shoppable at all times
Shopper Communication: Assist the shopper with store guidance, education and information to make product visible and help her/him make an informed purchase
Loss Prevention: Preventing products from being swept off the shelf en masse
November 2020
FlexRoller Plays An Important Role In Driving Beer Sales
Beer is a Key Revenue Driver for Convenience Stores
The convenience store channel is key for beer sales. Over the last several years, beer has advanced to the second largest sales contributor behind cigarettes, ahead of energy drinks, soda and snacks. Some key insights are:
Beer sales account for 12% of sales growing at over 4% in 2019 vs. 2018
Beer shoppers spend 40% more on total baskets than non-beer shoppers
About 46% of shoppers say beer is their main reason for the trip
Beer C-Store Insights
Beer Shelf Organization is Currently Not Focused on Maximizing Sales
The following facts show that the beer shelf needs an efficient and effective merchandising system to capitalize on the growth of the category:
Single cans account for 26% of sales, but only for 17% of the cooler space
12oz six packs and 25oz singles drive 65% of total beer sales
Shoppers spend only spend 18 seconds at the shelf
FlexRoller Helps Organize the Beer Category and Converts Shoppers Into Buyers
The beer category includes a variety of packaging types such as glass & aluminum singles and cardboard multi-packs.
FlexRoller’s patented rollers are a universal merchandising solution that will keep all beverage packs consistently fronted and organized. An organized shelf plays a critical role in the purchasing decision as beer shoppers only spend 18 seconds at the shelf on average.
FlexRoller is the Best Solution for all Beer Shelves and Packs in the Convenience Store
With changing customer trends and new beverages being introduced, fine tuning product assortments is critical. FlexRoller’s adjustable dividers allow for fast and easy planogram resets which allows stores to quickly adapt their alcoholic beverage category offerings.
FlexRoller will front consistently and reliably beer in these locations:
FlexRoller Benefits Convenience Stores in the Following Ways:
Sales Increase of 6-8% – Product is always fronted at the shelf edge
Labor Savings – Manual fronting is eliminated
Additional Facings – 20 facings can be gained in a 10-door set as adjustable dividers accommodate exact product width
Planogram Flexibility – Quickly implement cut-ins and planogram resets for new beverages, flavors and pack sizes
Universal Fronting – Patented rollers accommodate any packaging type (aluminum, plastic, glass & multi-packs)
Bruegmann Has The On-Shelf Merchandising Solutions For A New In-Store Reality
Shopping has changed. Retailers are re-tooling their stores – Brands are trying to adjust
In March, when President Trump declared coronavirus a national emergency, food retail revenue soared over 25% from February, “collapsing more than eight years of dollar growth into a few weeks,” FMI said in a report. As of April, food retail revenue remained more than 10% higher than pre-pandemic levels.
The retail surge also reversed long-term food spending trends, in which food retail had gradually declined since the early 1990s as foodservice crept up. Food retail’s share of food spending rose from 50% in February, to 63% in March, and then 68% in April according to the FMI study. Meanwhile, restaurants — forced to close or offer only takeout and/or delivery — saw their share of food retail spending drop from around 50% to roughly 35%.
The new shopper looks very different from the old one
Insights: New Shoppers
Shop less often
Visit fewer stores
Spend more on each trip
Use less time on each trip
Are satisfied with smaller assortment
Are prepared with a list
Some more details about shopper behavior:
Just over 50% said they now want to “get in and out” of stores quickly, a goal only 13% said they had before the crisis hit. – Path To Purchase IQ
79% of shoppers are heading to the store with specific ingredients on their list – Path To Purchase IQ
Nearly 50% of shoppers now identify themselves as trip planners, vs. fewer than 25% before the pandemic began – Path To Purchase IQ
86% of shoppers who encountered out-of-stocks tried a substitute brand. 43% of those shoppers indicated that they now prefer the newly tried brand. – Progressive Grocer
Supporting today’s in-store shopper means creating a safe, easy and efficient store environment. Bruegmann has the on-shelf merchandising solutions for a new in-store reality
Fronting and Organization: Get the basics right keeping shelves well organized, fronted and shoppable at all times. FlexRoller and Bruegmann’s line of pushers do just that by automatically front-facing products to the shelf edge.
Communication: Assist the shopper to making informed purchasing decisions with store guidance, education and on-shelf communication. Bruegmann’s range signage capabilities such as shelf cubes, shelf-edge strips and aisle markers help retailers guide and inform their customers.
Cross-merchandising: Making shopping easy to sell more and increase basket size. Impulse strips make products available where they can be sold in combination with other relevant products.
August 2020
Drive Private Label Growth Through Effective On-Shelf Merchandising
Private Label Goods Can Help A Retailer Drive Traffic To The Store
Private label brands, once thought as inferior products, have substantially increased in market share over recent years. Today Private label is more influential than ever in even determining store choice of shoppers.
Some facts about private label performance:
$153 billion in sales for 2018 across edible and non-edible retail outlets.1
Private label sales are expected outgrow national brands in 2020 for the fourth straight year2
More than half of shoppers reported they picked a store specifically for its private brand offerings3
Private Label Is One Of the Most Profitable Categories For Retailers
Investing in private label product lines is a no brainer for retailers. In addition to being able to offer lower prices with wider margins as compared to brand names, Grocers can drive customer loyalty by offering products unique to their stores. For example, Kroger’s investment in its private label products resulted in the category making up 30% of total unit sales by early 2019. Additionally, Kroger’s flagship Simple Truth brand earned over $2.3 billion in annual sales.4
Private Label Is Set To Continue Its Growth
Private label brand growth is set to thrive even more as a result of the pandemic, as price conscious consumers flocked to stores seeking the biggest bang for their buck. During the pandemic, private label brands saw a 34% increase in sales. If this trend continues, private label sales of food and beverage products could see an increase of $10 to $12 billion in sales for the year.3
Well Executed Category Management Is The Key To Drive Private Label Growth
Millions of dollars are invested into the development and shopper marketing of private label portfolios. Improper on-shelf merchandising of these products could prove detrimental in the point-of-purchase decision making process. An important aspect of this process is ensuring that products are at the shelf edge accessible to customers.
FlexRoller Will Help Further Drive Private Label Sales For Retailers
With FlexRoller’s gravity feed roller tracks, product is automatically front faced to the shelf edge. This assists in the shopper marketing process as a well-presented category is easy to shop and stands out in the aisle. Operationally, retailers no longer have to rely on hours of manual fronting from employees throughout the day. This effect allows retailers to reallocate labor tasks to other areas of the store, boost operational efficiencies while creating a better shopping experience.
Additional In-Store And Shelf Management Systems Can Add Even More Value
Overall, Grocers can complement their private label shelf management systems by leveraging in-store merchandising strategies such as automatic fronting from FlexRoller and incorporating on-shelf communication. Custom solutions such as on-shelf cubes and shelf edge InfoStrips can communicate product information or shopper marketing messages to engage the shopper in their shopping process. As a result, products stand out on the shelf-edge and the consumer is further involved in their shopping experience. All the while, grocers can efficiently re-allocate labor requirements by reducing the need for manual fronting.
Showcase Your Private Label Brands On The Shelf With Bruegmann Solutions
Bruegmann boasts several market-driven solutions that can enhance the on-shelf presence of your Private Label brands. From signage to fronting solutions, Bruegmann has the capabilities and expertise to provide custom solutions to best fit your in-store merchandising strategies.
Bruegmann is committed to serving our customers amid the Coronavirus (COVID-19) outbreak. We are closely monitoring updates and recommendations communicated by federal, state and local officials, and have adapted our business practices accordingly. We have implemented procedures for our employees to work remotely when possible, as well as strict guidelines for those essential employees in our offices, warehouse and production facilities.
Because we are committed to maintain exemplary high levels of service during these unprecedented times, our offices and production facilities remain fully operational. Bruegmann sales and customer support teams are able and ready to assist our customers with any needs, as well as provide support for retailers that have had disrupted supply chains due to the virus.
After all, retail is our passion. Bruegmann aims to be the best possible partner for retailers that are serving our communities during this crisis.
We will continue to provide updates via Bruegmann-USA.com and our Bruegmann Group LinkedIn Page. If you have any additional questions or are in need of assistance, please contact your Bruegmann Sales Representative, or our support team at info@bruegmann-usa.com. We hope everyone is remaining cautious, safe & healthy.
Best regards,
Bruegmann USA Team
October 2019
The in-store experience is more important now than ever
The brick & mortar world is evolving faster than ever before. While retailers are investing heavily in digital platforms, physical storefronts are perhaps seeing the biggest changes.
From mobile apps to full service restaurants, grocers have implemented various strategies to enhance the in-store experience for the customer.
Shopper Guidance: Mobile apps can assist the shopper to locate items on their shopping list and communicate discounts and promotions.
Destinations: Flagship stores incorporate cafes, full-service restaurants, live music and
even bars.
Artificial Intelligence: AI has been implemented to autonomously gather information on inventory, determine whether meats and product are fresh, and to identify spills or other hazards that require attention.
Digital Integration: Digital platforms allow shoppers to fill their carts from home by offering delivery services and curbside pick-up.
In order for these investments to be utilized at maximum potential, a consistently organized and fronted shelf must be a priority. With automatic fronting, FlexRoller ensures retailers that their investments in the shopping experience pays off:
Product Visibility: With automatic fronting, products are consistently at the shelf’s edge and visible to customers.
Elimination of Manual Fronting: Store employees won’t have to organize shelves throughout the day, thus freeing up staff to better assist customers.
No More ‘Perceived Out of Stocks’: As product gets shuffled around by customers throughout the day, some merchandise may get lost in the back of the shelf creating a perceived out of stock situation.
Flexibility: FlexRoller comes in several applications that works in a multitude of store environments. In addition, FlexRoller’s adjustable dividers accommodate any packaging type and size.
A spike in the temperature means a spike in sales for C-Stores. The summer months are the busiest times of year as the days become longer, and more people hit the road for travel.
Beverage sales spike more than 5% in the summer and domestic beer sold 40% of their annual dollars throughout the summer. The outlook for this summer appears to be no different. According to NACS, “On-the-go beverage sales also are expected to heat up at convenience stores this quarter. Fully half of all retailers (50%) say they expect energy drink sales to increase and 38% expect an increase in bottled water sales.”
With the increase in store traffic, staff has less time attending to fronting and stocking the cold vault which becomes more and more disorganized.
With FlexRoller, C-Stores can take every advantage of the uptick in summer traffic!
FlexRoller ensures that product of all shapes and sizes are always consistently fronted
This results in increased sales due to enhanced product presentation
Also decreases labor costs due to the elimination of manual fronting
Sources:
Nielsen Total Convenience Data W/E 3/20/2016, Seasonality index calculated using weeks 17-35 vs remaining year
TNS, 2012
NACS, “Strong Food, Beverage Sales Expected at Convenience Stores in Q2”
October 2018
Visit us at NACS Show 2018! Booth #2069
Maximize the full potential of your shelf…
Sales up
Labor costs down
No manual fronting
No perceived out-of-stock
Fast restocking
Easy cut-ins
Less time in cooler
Optimized planogram resets
August 2018
Converting “Shoppers” into “Buyers” …. Here’s how!
Shoppers prefer a clean, safe and well organized store with shelves that are well merchandised and look good. Shelves that are shopped down are not inviting and create a bad impression of the store (disorganized). Nobody really wants to shop these shelves.
Shoppers spend only 3.5 Minutes in a C-Store. They want to find what they are looking for quickly and efficiently. Shopper research reveals that a shopper who finds the first item within 10 seconds, spends the same amount of time in the category and purchases 50% more.
