Identifying sales potential and reasons for non-achievement

Date of publication: June 4, 1986

Abstract:

The rate of retail competition is going to increase more rapidly. The ease with which sales and share gains can be made will decrease rapidly. So the need is urgent to analyse potential more carefully, and to meet it. This requires a much deeper understanding of people. Macro aggregate norms and trends must be reduced to households, shopping trip sales opportunities, and individual trip purchases and spend. We know the basic laws governing the achievement of optimum retail potential and the absolute numbers within which they operate. But we also, know that in-store practices often produce actual sales below potential. And EPOS may perpetuate these practices, apparently recording 'demand' perfectly - but not recording what didn't sell. There is much to be done in this area, as well as in analysing household and trip share trends. This paper discusses and illustrates the essential components.

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