Pharmacy Daily | Taking a category approach

Category management is about balance: product ranges with shelf space, volume with profitability and days of supply with turnover, or stock turns. Category management is about making the entire category as profitable as possible by balancing market share, sales data, supplier relationships (incorporating the buying deal, rebates, coop, training and other applicable elements) and your store’s unique requirement to come up with a strategic plan for each category. Each plan is not static; it changes periodically, most commonly seasonally, to adjust to changing requirements, products and demand. A key part of category management is merchandising. Effective merchandising is all about ensuring the most desirable ranges (for the store and the customer) are allocated enough space and optimum positioning to minimise out of stocks whilst also meeting demand. Merchandising is an integral part of retail and the primary focus of merchandising is ‘the shelf’. The shelf is the only time in the whole supply chain where the supplier, retailer and consumer come together. Given that research suggests that the vast majority of purchases (up to 75% dependent on the channel) are decided at the shelf, it certainly pays to get the mix right. An effective merchandising approach within a targeted category strategy can improve category performance, maximise returns, and strengthen your relationship with the customer, it can also give you and your staff a blueprint for creating the best selling environment. This week’s contributor is Instigo’s David Zivkovic.

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