In food, drug, and mass retailing, there are surprisingly few items among the tens of thousands that are stocked, that produce the vast majority of sales. These few items that are purchased by many are often referred to as the “Big Head”. Conversely, the majority of the thousands of items that are stocked in the store, are rarely purchased and when they are, every individual shopper has their own very different preferences. These items comprise the “Long Tail”.
What to Do
A key step in the Accelerated Merchandising™ process, is the identification and profiling of categories, brands, and items in the store according to their purchase velocity and other key factors.
The resulting focus should always be on selling more of what shoppers are already buying and do so where they are already going. That approach requires little or no incremental markdown investment and provides the shopper with relevant value with no additional energy or time spent in the store.