Independent retailers are missing out on £11.7 million worth of sales each year because they are failing to see the business opportunity of breakfast.
That’s the claim made today by Kellogg’s at its annual trade media briefing held in London.
Speaking at the event, Chris McLaughlin, head of specialty accounts at Kellogg’s said: “The fact is convenience is a breakfast battle ground.
“When you delve into this and look at cereal shoppers, you can see they present a lucrative opportunity. That’s because cereal shoppers are on a top up mission in convenience and they are crucial to driving up basket size in store as they spend 26 percent – or £3 more – per trip than the average shopper.
“What’s more, 88% of convenience store shoppers are looking for cereals they normally buy as part of their main shop at the supermarket”
“All this means, breakfast shoppers are an audience retailers can’t afford to ignore.”
The convenience sector alone sells more than 150 different types of breakfast cereal in-store in a year, out of a possible choice of 300.
Chris says this inevitably leads to confusion amongst retailers about what products they should stock to drive maximum return.
In response, Kellogg’s has unveiled its new perfect fixture: a category management programme designed to help retailers at every step of the chain understand what cereal they need to put on shelf.
“Put simply, it’s about giving our retail partners all the information they need to make a profitable decision”, said Chris.
“It’s based on extensive research into what shoppers buy in store, the results of which we package to help inform the merchandising decisions of our partners.”
According to Kellogg’s, 72 percent of convenience shoppers are looking for adult cereals so its perfect fixture solution recommends retailers allocate 70 percent of space on fixture to adult cereal to maximise sales.
When it comes to the choice of what to stock in-store, many convenience and independent retailers are failing to keep up-to-date with the top selling lines. Recently, research organisation SalesOut claimed Special K Red Berries has the third highest average weekly sales in the independent sector, but it is only tenth in terms of total sales.
To further help combat this, the concept behind Kellogg’s’ perfect fixture is being taken to cash and carry in the form of bay branding in the cereal section. Branding ensures all products on shelf are clearly ranked so independent retailers can easily purchase the best selling cereals.
Kellogg’s is currently rolling out the perfect fixture in-store and bay branding in cash and carry.
“We recognise cereal may not be high on the agenda of many independent retailers. But the facts speak for themselves. Breakfast and cereal shoppers make good business sense. That’s why we’ve invested in initiatives like the perfect fixture so retailers can make the most profitable choice about what to stock in their limited space.”
Retailers wanting further information can contact their Kellogg’s field sales representative or call Kellogg’s on 0800 783 6676.
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