Grocers will no longer rely on brands for merchandising data that dictates how to display products in-store, which will make testing products more difficult for legacy players.

WHAT HAPPENED: Grocery stores are using their own proprietary research to decide where to shelve products. Up until now, most grocers have relied on well-known brands to determine product pricing and shelf placement.

WHY IT MATTERS

  • Grocery stores no longer need to rely on CPG conglomerates for information and guidance. Retailers once relied on brands for this information because they were the experts in their food categories. But now stores like Kroger and Walmart have the technology (like surveillance videos) to make more educated decisions and detailed planograms for driving sales. With more niche brands entering the grocery store than ever before, grocery stores can’t rely on past sales performance and brand allegiances if they want to outsmart the competition. This also benefits their private labels, which increasingly compete with new and old brands alike.