Collaboration between various teams is vital to drive value to retailers through Category Initiatives from start to finish. While the success of Convergence via Category Initiatives was demonstrated through the favorable results of 2022, AWG continues to take steps towards process improvement to increase value to our member retailers.
Learning and Evolving
Category managers conduct an extensive 20+ week review of product assortment using warehouse data and syndicated data from Nielson and Circana (formerly IRI) to identify and remove non-productive SKUs and deliver the optimal assortment for retailers. Additionally, category managers partner with our vendor and supplier partners from the very start to gather consumer research and best-in-class planogram recommendations. Throughout planning the 2023 Category Initiatives, AWG and VMC have worked with 65+ vendors during the category initiative process.
Equipped with the assortment recommendations and consumer insights, planograms are updated with regionality at the forefront to focus on how consumers shop the category within each AWG division. In addition, Category Initiatives continue to integrate and elevate AWG Brands for value-seeking consumers.
More than 800 individual planograms within 36 categories have been updated through the Category Initiative work in 2023. The AWG merchandising team, in collaboration with the category management and AWG Brands teams, continue to refine the Category Initiative execution and implementation process. Some process optimization examples include:
- Implementing live test sets before retail launch to ensure accurate item placement and fit
- Right-sizing shelf sets so that stores of varying sizes can readily participate
- Updating assortments to also feature AWG Brands, including a focus on having the right items and the right sizes
Member Testimonial – “All of my stores are signed up for the entire Convergence program. My stores are getting the resets they need and with the insights and analytics behind the planograms. It will help drive our sales.”
Partnering for Operational Efficiencies
AWG and VMC division teams play an integral role in the success of category execution resets by driving communication to members and participating stores. When a store has opted to participate in an initiative, they can choose to have AWG’s merchandising partners schedule and execute the set in store. AWG has worked closely with our Acosta merchandising partners to elevate processes and drive communication with in-store merchandising specialists. For 2023, there is an emphasis on dedicated personnel within a region to create consistency and familiarity with specific stores. Additionally, on the day of the reset, the Acosta in-store merchandising team will work directly with store management before and after the reset to ensure planogram modifications are integrated and the set was properly executed.
Stores also have the option to join the AWG One Source program, which offers in-store merchandising support while driving execution efficiencies to help improve financial results. Merchandising specialists are assigned to stores in a designated area to drive consistency and efficiency within the main activities of the program. The One Source team:
- Executes the Convergence strategy via Category Initiative resets
- Improves new item speed to shelf, conversions, and distribution voids through a monthly objective list developed in partnership with the category management team
- Implements category reviews and refreshes to ensure the most up to date shelf sets
When retailers join the One Source program and execute the Category Initiative schedule, stores can expect to update the majority of their store on a three-year cycle.
More than 1,100 AWG member stores are directly realizing the benefits and cost savings of the One Source merchandising program currently, with more scheduled to come onto the program soon. For more information on One Source, please contact your member services director.
