Retailer Reactions to ScanBased Trading in Magazines

1
Retailer Reactions toScan-Based Trading in
Magazines
Prepared for theRetail Conference
ExpobyBill BishopMarch 2002
Willard Bishop Consulting, Ltd.www.bishop-consult
ing.com
2
Background
MRAC Initiatives

• Get Caught Reading
• Best Merchandising Practices
• Scan-Based Trading

3
Background
Scan-Based Trading Initiatives

• White Paper
• Session at Retail Conference
• Survey of Retailer Reaction
• 30 companies
• Responses
• 64 Billion
• 9,200 Stores

4

Survey Results
More than 60 of retail respondents are planning
to move forward with Scan-Based Trading (SBT)
initiatives this year.
1.
Involvement in Scan-Based Trading( of
Respondents)
5
Survey Results
All of the companies in the planning stage expect
to have pilots up this year.
2.
Plan to Start Pilot-Testing( of Respondents)
6
Survey Results
2.
(Cont.)
Length of Pilots( of Respondents)
Theres a lot of variation in the length of the
pilots.
7
Survey Results
Most respondents plan to pilot Scan-Based Trading
in fewer than 10 of their stores.
3.
Percent of Stores inScan-Based Trading Pilots
( of Respondents)
8
Survey Results
Improved category profitability is the top reason
for moving towards Scan-Based Trading (SBT) for
magazines.
4.
Rank Order of SBT Benefits( of Respondents)
1. Category Profitability 2. Labor
Savings 3. Sales Growth 4. Shrink
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Survey Results
5.
SBT in magazines is not a top priority for some
retailers.
Barriers

• Magazines are not a priority item at the present
  time.
• System limitations.
• We have improved our distribution relationships
  with our strategic wholesalers that have led to
  reduced labor, higher sales, and improved
  accounting.
• My assessment of SBT is that it adds cost and
  will not be able to resolve shrinkage.
• Given our success, we are converting more stores
  to the improved distribution systems.

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Agenda

• Supplier Perspective on SBT Martha Uhlhorn
• Panel Discussion
• Steve Burbridge
• Tom Fogarty
• Stephanie Justice
• Martha Uhlhorn
• Audience Question