Eco Shop, a prominent household goods retail chain in Malaysia, operates more than 250 stores nationwide. Renowned for offering an extensive selection of home goods at affordable prices, Eco Shop is committed to making life easier for its customers by delivering the best prices right in their neighborhoods.
As part of its continuous effort to innovate and improve customer experience, Eco Shop recently implemented LEAFIO Shelf Efficiency, an advanced software solution for planogram management and optimization. This initiative marked a significant upgrade from their previous system and has transformed their merchandising process.
Challenges before implementation
Before adopting LEAFIO Shelf Efficiency, Eco Shop's merchandising and planogram management faced several challenges:
- Manual processes: The team relied on Excel sheets to manage the product library, making the planogram creation process cumbersome and time-consuming.
- Lack of integration: There was no direct product status update from the merchandising team to the planogram team, leading to inefficiencies and communication gaps.
- Inability to compare store ranges: The team struggled to compare product ranges across different stores, limiting their ability to optimize merchandising strategies effectively.
These challenges drove Eco Shop to seek a robust planogram system that could digitize their merchandising process and deliver specific outcomes:
- Establish a new product merchandising structure.
- Enhance the efficiency of the merchandising process in stores.
- Improve the creation of category-specific planograms with varied space allocations.
- Reduce the time required for planogram execution in stores.
- Support efficient planogram management for both existing stores and new store openings.
Why LEAFIO Shelf Efficiency?
Eco Shop chose LEAFIO Shelf Efficiency for several compelling reasons:
- Data-driven innovation: LEAFIO AI's data-driven solution is new to the Malaysian market, offering cutting-edge technology that could provide significant competitive advantages.
- Superior user experience: Based on Eco Shop’s prior experience with software solutions, LEAFIO AI stood out in terms of its mobile application, which is designed to deliver high-quality outputs to store end users.
- Cost efficiency: The software’s pricing structure was deemed cost-effective, providing excellent value for its features and benefits.
Benefits of implementation
Eco Shop 100% projected and launched the new store using the LEAFIO Shelf Efficiency system. The integration has also yielded multiple tangible benefits for the retailer:
#1 Data-driven planograms
Leveraging data-driven merchandise planning, Eco Shop can now optimize or generate planograms based on sales analytics, ensuring a balance between visual appeal and effectiveness.
#2 Streamlined processes
The software has significantly decreased employees' time creating, implementing, and optimizing planograms, making the overall merchandise planning process more efficient.
#3 Multi-store management
With LEAFIO Shelf Efficiency, Eco Shop can seamlessly manage hundreds of planograms across its retail chain, easily accommodating various store layouts.
#4 Resource optimization
LEAFIO AI's solution helps Eco Shop overcome resource limitations, whether spatial or human, by enabling efficient management of their merchandising needs.
#5 Improved planogram compliance
The software ensures that planogram compliance is consistently met, increasing sales and maintaining the retailer’s reputation with flawless display execution.
Implementation results
Selected Categories: Candy, Laundry, and Bath & Shower
1. Sales Impact Analysis of the selected planograms
Category: Candy
Sales Effect on Dynamics: +18.5%
Sales in Units Effect on Dynamics: +18.4%
Key Insights:
Significant improvement in sales within the Candy category.
Sales per month increased, reflecting a positive shift of 32.4%.
Category: Laundry
Sales Effect on Dynamics: +24.3%
Sales in Units Effect on Dynamics: +31.6%
Key Insights:
Strong performance in the Laundry category, with notable improvements in sales.
Sales per month increased, showing a growth of 24%.
Category: Bath & Shower
Sales Effect on Dynamics: +23.9%
Sales in Units Effect on Dynamics: +13.5%
Key Insights:
Positive dynamics in the Bath & Shower category, though the growth rate is slightly lower compared to other categories.
Sales per month increased, showing an improvement of 3.1%.
2. Additional metrics analysis for categories (including products not on the planogram)
Sales per Meter
Candy: +32.4%
Laundry: +24%
Bath & Bodyshower: +3.1%
The Bigger Picture: One Software, Many Wins
Across all three categories, these changes were powered by data-driven planogramming. By making the most of every meter and adjusting layouts based on customer behavior and product performance, stores were able to unlock:
- Faster decision-making at the shelf
- Better product availability
- Higher profit per shelf space
And all of it happened without major remodeling, extra staff, or big discounts.
Client testimonial
“We would like to express our sincere appreciation for the exceptional software solutions and service LEAFIO AI’s team has provided us at Eco Shop Marketing Sdn Bhd. We are delighted with the first store’s 100% planogram build result and look forward to continuing our partnership. The floor planning, shelf planning, and mobile apps have been particularly impressive,” remarked the Eco Shop SRD team.
Key advantages noted by Eco Shop’s users
Eco Shop has recognized several unique advantages and results following the implementation of LEAFIO Shelf Efficiency:
- User-friendly Interface: The software is simple to use, making it easy for users to create, edit, and visualize planograms. The intuitive interface allows for efficient navigation and task performance.
- Flexibility in design: LEAFIO offers flexibility in designing planograms to suit different store layouts, product categories, and display preferences, ensuring each store can be tailored to its unique needs.
- Analytics and reporting: The software provides valuable insights into sales performance, space utilization, and planogram compliance, allowing Eco Shop to optimize its store space effectively.
- Cost-effectiveness: LEAFIO Shelf Efficiency offers a pricing structure that provides excellent value for money and aligns well with Eco Shop’s organizational needs.
- Mobile integration: The mobile app is seamlessly integrated with in-store handheld scanners, allowing store teams to access floor plans and category planograms created and published by the SRD team.
“Furthermore, we commend LEAFIO AI’s team for their expertise and proactive approach to addressing our needs. Their responsiveness and dedication to understanding our requirements have made working with LEAFIO AI a truly collaborative and enjoyable experience. Their commitment to excellence and innovation has significantly contributed to our success in setting up, providing user training, trialing, implementing, and launching LEAFIO AI in our organization,” concluded the Eco Shop SRD team.
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With LEAFIO Shelf Efficiency, Eco Shop is poised to continue its expansion across Malaysia, opening new stores with a streamlined and optimized merchandising process that enhances customer experience and operational efficiency.
