How automation helps in merchandising-related business processes: Fayno Market retail chain experience
Fayno Market is a retail chain with the following kind of stores: discounters, convenience stores, street retail, social stores, and alcoholic beverages stores.
Locations:
104
Total assortment:
8,000
"Fayno market" is a retail chain with 104 stores. There is the following kind of stores: discounters, convenience stores, street retail, social stores, and alcoholic beverages stores. The range includes 8,000 SKUs. The chain has its own production and gastronomy, 28 bakeries, 17 pizzerias, and 46 grills, where you can always find something fresh and tasty for your dinner.
The "Fayno market" chain has highly loyal customers, as evidenced by the award "People's Brand 2019".
In their activities, retailers face many issues, solving of which results either in gain in sales and the chain expansion or in an endless struggle with competitors for a market segment. Companies that stay up to date with innovation and can quickly introduce it into routine processes take the lead. They easily adapt to change. This is especially true at the present time when consumer habits and market conditions are changing.
Success greatly depends on the optimization of the company's internal business processes. A continuous improvement strategy involves a continuous search for problem areas and the solution to this issue. "Fayno market" has decided to rethink its store display management. After reviewing its activities and key performance indicators, the chain management identified a number of unresolved issues:
Thus, the retail chain needed to reconsider its approach to one of the key retail business processes - merchandising. This meant regular systematic work on the efficient display of goods, constructing planograms for each store, monitoring their implementation, and analyzing the results with subsequent adjustments.
When manually constructing the display, there may be errors, besides, such a process takes a lot of time. Any adjustments to planograms become rather time-consuming. And wasting time on operational tasks in a rapidly evolving external environment is not beneficial for the retail chain. Therefore, the "Fayno market" chain decided to introduce into its work the software that would help minimize manual labor, as well as provide full control over the display. They chose Leafio Planogram Optimization.
AUTOMATED SHELF SPACE PERFORMANCE IMPROVEMENT
Fast and intuitive design process
The "Fayno Market" chain management decided to take a comprehensive approach to eliminate existing problems by introducing an automated system Leafio Planogram Optimization. The solution gives you an opportunity to perform the following actions online:
The “Fayno Market” chain has radically changed its approach to merchandising. Process management has switched to a remote mode: store employees keep in touch with the central office via a mobile application. Having gone online from any device, they instantly receive up-to-date planograms, promptly learn about any changes in the product range and send the results of the display as photo reports.
Except for the significant changes in its approach to merchandising, the company has optimized operational work with shelf space and trading floor.
“Organizing the merchandising management system has significantly improved sales and turnover indicators, helped to track the situation with products, anticipate surplus or shortages of goods and promptly make changes to the product matrix”, the “The Fayno Market” chain manager said.
Automation of merchandising provides for measurable results in the short term.
Implementation of the Leafio merchandising management solution has significantly increased sales, improved turnover, enabled SKU traceability, allowed foreseeing overstocks or deficits, and responded in a timely manner by adjusting the assortment matrix.
