Intro to Wholesale with Peter Chapman
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Intro to Wholesale with Peter Chapman

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Intro to Wholesale with Peter Chapman Intro to Wholesale with Peter Chapman Presentation Transcript

  • You love to grow it, Now let’s sell it
  • You love to grow it, now let’s sell it Retail landscape Must have Nice to have Behind closed doors Getting organic in the cart
  • Retail landscape
  • Retail landscape-1980’s 10% 70% 20% Large store Traditional Discount
  • Retail landscape-1990’s 15% 60% 25% Large store Traditional Discount
  • Retail landscape-2000’s 20% 50% 30% Large store Traditional Discount
  • Retail landscape-2013 25% 40% 35% Large store Traditional Discount
  • Retail/other landscape-2013 Specialty    CSA        Farm   Markets   Food service Drug
  • Linear footage Dairy 495 712 690 704 Frozen 495 1,800 1,710 1,080 2,574 3,592 5,292 3,524 Water/pop 1,176 Chips/snacks 1,844 1,454 1,068 Household 1,680 1,692 1,376 880 144 504 852 320 6,564 10,144 11,374 7,576 Core groc Imported Total
  • 380 Wal Mart stores 222 Wal Mart Super Centers Annual sales $466,100,000,000 14.2 x Loblaws 27.3 x Sobeys 36.9 x Metro 6.3 x Target 4.6 x Costco
  • A changing customer More focus on value
  • A changing customer More focus on value National business
  • A changing customer More focus on value National business Blurring of channels
  • A changing customer More focus on value National business Blurring of channels U.S. share
  • What do you need?
  • Must have when selling to retail Confidence
  • Must have when selling to retail Food safety/ certification
  • Must have when selling to retail Consistent execution
  • Must have when selling to retail Technology/EDI
  • Must have when selling to retail Packaging & labels
  • Nice to have when selling to retail Promotion
  • Weekly ads “36% of sales and 48% of tonnage are items with a temporary price reduction” A.C. Nielsen “State of the Industry report”
  • Nice to have when selling to retail Nice labels
  • Nice to have when selling to retail Assortment
  • Nice to have when selling to retail Volume
  • Behind closed doors
  • Organic to a retailer 1 of 50,000 skus Your item to build… not mine
  • Behind closed doors What we like
  • Point of differentiation
  • Premium price per unit
  • Your passion
  • A committed consumer
  • Control label organics
  • Assortment
  • Behind closed doors What we don’t like
  • Herding cats
  • Resistant to change
  • Inconsistent supply
  • Shrink
  • Front end
  • Different method of doing business
  • Behind closed doors A few numbers
  • Produce margin Shelf  G.P.   45.0   Ad  investment   5.0   Shrink   7.5   Labour   12.0   Supplies   1.5   Contribu<on   19.0  
  • Retailer profitability Shelf  G.P.   Ad  investment   27.0   5.0   Shrink   Labour   Fixed  exp.   Variable  exp.   Distribu@on   Total  expenses   2.0   7.5   2.5   1.5   7.0   25.5   Profit   1.5  
  • Shrink 10%-15%
  • Penetration 5%-8%
  • Selling more organic
  • Getting started
  • Getting started
  • A plan
  • Growing sales
  • Persistence
  • New items
  • Different items
  • Control label
  • Relationships
  • Thank you