Upload
benita
View
35
Download
0
Tags:
Embed Size (px)
DESCRIPTION
2009 Grocery Store SuperStudy Plugging into the Profit Power of Eggs. December 2009. Dairy and Egg Financial Impact. Financial Contributions – Willard Bishop SuperStudy ™ 2009. Benefits Benchmarking visibility in to category profitability - PowerPoint PPT Presentation
Citation preview
2009 Grocery Store SuperStudy
Plugging into the Profit Power of Eggs
December 2009
2
Dairy and Egg Financial Impact
3
Financial Contributions – Willard Bishop SuperStudy™ 2009
– Benefits• Benchmarking visibility in to category profitability• Enables keener category management and retail analysis by
factoring financial contributions in to recommendations; Yields more informed decision making by incorporating bottom line insights
– Definition• Comprehensive total-store analysis that evaluates every item
and its financial performance• Sales & space; Profitability & financial contribution• SKU performance aggregated in to department, category and
subcategory reporting
4
– Methodology• 52 weeks of retailer data: sales, cost of goods, cash discounts• Retailer cost-to-serve (warehouse, transportation, and store
activity-based costs)• Store visits to collect space and product handling practices (time
study)• Product information including case packs, dimensions and
merchandising space
Financial Contributions – Willard Bishop SuperStudy™ 2009
5
Key Concepts
The SuperStudy P&L– The fundamental result is an industry benchmark profit & loss
statement. All measures and emerging best practice analytics tie back to these core metrics:
• Sales• subtract Cost of Goods• add Trade & Terms• equals Adjusted Gross Profit (AGP)• subtract Activity Based Costs (ABCs)• equals True Profit (TP)
– Leverage insights against the profitability, or real cash contribution, of sales
6
Dairy Department Overview
– The Dairy department contributes disproportionately to overall profits
Top 5 Grocery Departments (Weekly Sales)
3X its share of space
5X its share of space!
Source: Willard Bishop 2009 Grocery SuperStudy™
Dairy Share of Total Store
7
Dairy Category Overview
– Eggs yield the highest True Margin of all Dairy categories, a result of high turns, efficient use of space and low costs-to-serve
Source: Willard Bishop 2009 Grocery SuperStudy™
Eggs Share of Dairy
1.8X its share of space!
8
Sales
Average Weekly Sales Dollars Per SKU– Very effective/efficient use of variety and assortment
Source: Willard Bishop 2009 Grocery SuperStudy™
9
Sales
Average Weekly Unit Sales Per SKU
Source: Willard Bishop 2009 Grocery SuperStudy™
10
Sales
81% of EGG SKUs are Making Money!
Source: Willard Bishop 2009 Grocery SuperStudy™
81.04%
67.72%
56.88%
80.58%
73.60%77.78%
69.04%72.04%
Fluid Milk Cheese RefrigeratedJuice
Yogurt Eggs Margarine-Butter
Cultured RefrigeratedBaking
11
Profitability
Weekly Profit Per Square Feet– Overall Egg space delivers solid profit contributions in both
adjusted gross and true profits for the Dairy Department
Source: Willard Bishop 2009 Grocery SuperStudy™
12
Return on Inventory Investment
Source: Willard Bishop 2009 Grocery SuperStudy™
True Profit Return on Inventory Dollar– Annual True Profit (gross profit plus trade spending less ABCs)
per dollar of inventory tied up on the shelf
13
Shelf Performance
High Turns Translates to Positive Cash Flow– Great balance in low day of supply and high turns to drive
productivity (a product can’t make money just sitting on the shelf)
Days of Supply Average Turns per Year
Source: Willard Bishop 2009 Grocery SuperStudy™
14
Space Performance
Average Weekly Sales Dollars/Sq. Ft. Facing
Source: Willard Bishop 2009 Grocery SuperStudy™
15
Average Weekly Profit Dollars/Sq. Ft. Facing
Space Performance
Source: Willard Bishop 2009 Grocery SuperStudy™
$32.04
$17.92$18.87
$34.68
$31.42 $30.98
$15.96
$4.21
$6.68
$37.89
$18.52
$21.02
$25.09
$7.20
$21.25
$24.65
Fluid Milk Cheese RefrigeratedJuice
Yogurt Eggs Margarine-Butter
Cultured RefrigeratedBaking
Adjusted Gross Profit per SFF Weekly True Profit per SFF
16
Profit Contribution Relative to Space and Sales
Space Performance
Source: Willard Bishop 2009 Grocery SuperStudy™
20%
14%16%
7% 7%
5%
7%
32%
21%
11% 11%
8%7%
5%4%
27%
6%
4%
11%9%
6%
3%
21%
33%
Fluid Milk Cheese RefrigeratedJuice
Yogurt Eggs Margarine-Butter
Cultured RefrigeratedBaking
Share of SFF Share of Sales Share of TP
Eggs represent 7% of Dairy
space but 11% of True Profits!
17
High True Profit per Unit Sold
Per Unit Performance
True Profit per Unit Weekly Movement
18
The incredible edible egg™
Summary of Egg Insights– Strong Sales and Trends– Versatile and Healthy are Core Consumer Benefits– Extremely Profitable; Fast Turns; Space that Performs