This document provides guidance for merchants on competitive shopping. It outlines key questions to consider about competitors and recommends regularly visiting stores to observe practices, assortments, promotions, pricing, and presentations. Merchants are advised to take notes discretely, collect materials, and photograph displays. Insights should be discussed with peers and suppliers. Observations should be summarized in documents like SWOT analyses and matrices comparing competitors on price and convenience. The goal is to gain strategic insights on differentiation.

1. Merchant’s Guide:
Joan Braatz, VP Merchandising

2. Why Shop
Competition?
To gain competitive insights on product,
price, presentation, promotion, and
placement. This presents opportunity to
develop differiention in product strategy.

3. Contoso Ltd.
Get started by answering:
• Who are the key competitors for this category?
• Where is the competitor located?
• What are competitor’s strengths?
• What are competitor’s weaknesses?
• What is the competitor’s product assortment?
• What is their pricing structure?
• What is the company’s marketing activities?
• Who are the company’s key suppliers?
• Is the company expanding? Cutting back?
• What stands out?
Where to start?
Consistent visits to key competitors
observing best practices and merchandise
strategies will yield valuable insights.
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4. Contoso Ltd.
Observe the Environment
As a merchant, product will always be the focus of a visit. Take the
opportunity to view the store through customer lens.
Digital
“Find more” on-line
signage or QR codes for
product information;
BOPIS, curbside
Navigation
Way finders and
adjacencies of like
products for impulse &
cross shopping
Customer Service
Attentiveness and
product knowledge of
sales associates; ease of
check out
Experience
Store environment, mood
music, interactive
displays, discovery &
exploratoration
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5. Contoso Ltd.
Be Consistent
Repetitive trips to the same locations will give contrast of change in
product, placement, promotion, or pricing strategy
Assortment
Monitor frequency of new
launches and
replenishment of core.
Study clearance racks.
Promotions
Visit on peak and non-peak
selling days to assess what
promotions are utilized for
each time period.
In-stocks
Check sizing integrity. Look
for depth in sizes or colors
indicating best sellers.
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6. Contoso Ltd.
A merchant’s comp shop check list
Product
Private brand, proprietary
or national branded
product assortment within
category
Price
Assess pricing strategy as
good, better, best or every
day low value
Promotion
Traffic driving strategies to
produce incremental
purchases or steal market
share
Placement
Category assignment
within the store: front or
back; main/lower level.
Category agencenies.
Presentation
Use of disruptive visuals,
in-ailse shippers, nested
tables, back walls. Impulse
display to drive trial.
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7. Contoso Ltd.
Examine affluent markets
• Spot first to market innovation
• Study elevated standards for product presentation
• Identify trends ahead of own company
• Pinpoint opportunities to interpret for your consumer
Shop
Aspirational
Gain inspiration for design and
product concepts by shopping at a
store with higher price point than
core consumer.
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8. Contoso Ltd.
Shop
E-commerce +
Digital
Comp Shop Omni-channel
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 Website landing page
 Feature banners
 Product highlights
 Left hand navigation
 On-line only promotions
 Shipping methods.

9. Contoso Ltd.
Record Observations
At Store Site
 Greet and talk to sales associates
 Observe shopper behavior (browse and buy)
 Discreetly take notes at the store
 Collect any catalogs or fliers available
 Inconspicuously take photos
 Front of store and/or store windows
 Off shelf presentation
 In-aisle displays
 Disruptive signing
 Product innovation
 Promotional pricing
Back at the office
 Review all store notes for commonalities
 Study website for congruency to store
 Join forces with peers on their discoveries
 Reach out to suppliers to validate obersvations
 Connect with store operators to gain perspective
 Record key findings in document with date
• SWOT analysis
• Price and ease
Add a footer
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10. Contoso Ltd.
Complete a SWOT Analysis
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Strengths
Weakness
Opportunities
Threats

11. Contoso Ltd.
Chart competition by price + ease
Convenience
Inconvenient
Expensive Affordable
YOUR company
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12. Contoso Ltd.
○ Create clarity of focus with questions
○ Observe environment and store traffic
○ Be consistent with frequency and location
○ Examine the 5 P’s important to every merchant
○ Find inspiration in the aspirational
○ Survey website for congruency
○ Summarize and record key findings Summary
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Competitive shopping reveals the
potential to develop differiention within
your company’s category strategy.

13. Joan Braatz, VP Merchandising
214-733-9677
braatzjoan@gmail.com
https://joanbraatz.com/
https://www.linkedin.com/in/joanbraatz/