Grocery

Fayno Market

How automation helps in merchandising-related business processes: Fayno Market retail chain experience

Fayno Market

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" received in Ukraine.

Challenge: how the retailers can quickly adapt to external changes

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:

  • Laying out was done manually;
  • Planograms construction was carried out in Excel, including an irrelevant range of products;
  • There was no communication between the store's employees and the headquarters;
  • There was no control over the display and evaluation of its efficiency, which led to the formation of surplus and lost sales.

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.

Objectives of implementing merchandising automation system

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:

  • To carry out work with the store database;
  • To minimize labor costs for constructing planograms;
  • To perform automated display in real-time, too;
  • To monitor the relevance of the product range;
  • To receive various reports on the display efficiency in a few clicks;

Result: the consequence of solving problems in the merchandising management

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.

  1. The trading floor management system has been automated: a unified database of trading equipment for stores of different conceptions has been created, and the space has been divided into zones for effective display management
  2. The process of constructing planograms has been optimized: the chain employees have learned to construct a detailed layout for displaying goods for points of sale of every conception by categories of main product groups. Automation has essentially reduced the time to work with planograms.

“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 manager of, “The Fayno Market” chain said.

Automation of merchandising provides for measurable results in the short term.

GUIDE «RETAIL CHECKLIST: PLANOGRAMMING EFFICIENCY KPIS»

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