Improving Margins and Return-On-Shelf-Space

Franchisees from the leading convenience store chain in Ireland, offering great time-of-day fresh foods, healthy options, and an expansive range of key grocery items.

Challenge

Insights from PULSE revealed that a particular canned sardine product was significantly underperforming, occupying valuable shelf space with very low sales velocity. This product was moving at a rate seven times slower than canned tuna and delivered a margin roughly one-third that of the tuna option.

Solution

The recommendation was to prioritize shelf space allocation, replenishment, and product placement around the faster-selling canned tuna to improve overall profitability. As a result, the sardines were replaced with a different variety of tuna aligned with stronger sales trends.

Results

This change generated an annual cash margin of €33.49 for the new product compared to €4.86 for the sardines, achieving a sevenfold increase in return on shelf space.