Tackling shopping costs and reducing loss in sales for brands in 2022
By: fatmir, redwigwam
Nobody knows what the year 2022 has in store for us, but most studies show that it will bring about a price increase in almost every aspect of our lives. That is, assuming you haven’t already figured it out.
Due to rising bills and living costs, this year is shaping up to be a tougher year for families across the United Kingdom.
Inflation struck 5.4% last month, the highest level in nearly 30 years. The Resolution Foundation estimates that households will spend an extra £1,200 this year. The Office for National Statistics also reports that approximately two-thirds of adults say their cost of living has significantly risen in the last month.
Experts estimate that the average UK citizen now spends a couple of hundred pounds more per month than they did a year ago, on basic expenses like going grocery shopping and paying for fuel. CNBC compiled a list of items that may be more expensive in 2022, which included food, housing, fuel and clothing. To put it another way, a lot of the things we use on a daily basis.
Supply chain disruptions have resulted in not only product shortages, but also price inflation across a variety of industries. Certainly, the COVID-19 pandemic, supply chain issues, and businesses having to pay more to attract and retain employees share some of the blame.
Despite rising prices, supermarket sales fell by 3.8% in the 12 weeks leading up to 23rd January 2022, according to Kantar take-home grocery data. It stated that households in the UK are experiencing “cost-of-living pressures”, with the most recent four-week grocery price increase standing at 3.8 percent, up 0.3 % from December. Prices went up in December as a result of labor shortages and soaring transportation costs, and this trend is likely to continue into 2022. Retailers still can’t get a hold of the current cost pressures, as prices are expected to rise at an even faster rate this year.
“Retail faces significant headwinds in 2022, as consumer spending is held back by rising inflation, increasing energy bills, and April’s national insurance hike. ”
Helen Dickinson, Chief Executive of the BRC
Retail has changed significantly over the years, with razor-thin margins, new digital-native brands increasing competition, changing consumer behavior, convenience becoming more important, and customer loyalty shifting – proximity no longer equals loyalty. As they struggle to cope with rising costs, the big grocery bosses have already hinted that food prices will rise this year.
For a consumer brand to progress, it must have a consistent superiority in mind space and shelf space, in addition to technical excellence and value. The FMCG industry’s valuable currencies are mind space and shelf space. The rise of online grocery could be the most significant shift in the FMCG industry since the birth of the supermarket.
A game changing solution to lost sales
All brands lose sales when their products are not available for consumers to buy when they should be. Redwigwam, provides a solution to this problem through Redalerts.
Our AI-powered solution helps brands stop losing sales and is a real game-changer for the FMCG market.
Watch this short video for an explanation of how it works.
If you’re already working with a data provider, we’ll take your existing EPoS sales data and convert and visualize it to show where you have availability issues. Our system then forecasts the value of the sales you are losing. We then create a call to action to fix it in-store as quickly as possible – alongside a cost and expected ROI for the fix.
You book the number of stores you want to fix – with no contracts or long-term commitments. Our community of wigwammers are deployed to fix the issues in store and upload the results for you to via your Redalerts portal.
(If you’re not already using a data provider, let us introduce you to our partner Elm with whom we’re already working with several household brands).
How Redalerts helped a household brand deliver an ROI of 5:1:
One brand has been working with us for the last month, starting with just 10 alerts as a trial. They were delighted with the ease of fixing these issues and last week, purchased 100 calls based on our recommendation to target alerts with an ROI of no less than 5:1
We're delighted to have fixed issues predicated to deliver an ROI of 5:1 or more, worth £5,735, with our field community fulfilling 90% of visits.
Using Redalerts is simple - and there is no obligation to purchase every week, no minimum purchase and no long-term contract.
To get started, contact our Business Development Consultant, Stewart Wells, who will talk you through the next steps. Book some time in his diary or drop him an email to arrange: email@example.com.