Local

Local

The Local Discounter supermarket chain is part of the Tarol DD group of stores, one of the largest retailers in the Republic of Moldova.
82
Stores
2000 - 15 000
SKU
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Automation of inventory management: chain case Local
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Background

Lack of a separate merchandising function; planogram development was handled by category managers.
Product placement was only present in some of the planograms.
Lack of control over suppliers: products were placed on shelves at their discretion.
Imperfect process for controlling planograms: photos of the displays were sent via messenger.

Progress of the project

The project was implemented according to our classic methodology, which includes 3 stages:
1. Business audit and data integration.
2. Creation of planograms for the selected category in the pilot store.
3. Scaling the selected category to the pilot stores

01
Business Audit and Data Integration

A detailed analysis of shelf space management processes was conducted, and a comprehensive description of business processes was obtained from the company’s management. This allowed for process optimization, identification of current issues, and the development of technical specifications. As part of working with the technical specifications, we ensured the rapid unloading of files for data exchange with all necessary information.

02
Creation of Planograms for the Pilot Category

A pilot store was selected for creating planograms for the pilot category. A detailed analysis of this category was conducted, and optimal product placement methods were determined. The responsible manager on the client’s side was trained to work with ABM Shelf to ensure efficient shelf space management.

03
Scaling and Control

Full implementation of planograms for the pilot category in the initial store and the start of scaling to the store network. Work with analytics and evaluation of display effectiveness. Training on using the mobile application for executing product placement tasks according to the created planogram. Full cycle completion, from planogram creation to execution. Planogram execution control and KPI monitoring.

04
Support

Regular meetings were held with the client in a Q&A format, status meetings, and project task management in Microsoft Planner. User support was provided for the quick resolution of technical or process-related issues after scaling.

Effects of the system implementation

Results Achieved for "Local":

The main change is the introduction of a merchandising business process. Before implementing the ABM Shelf system, there was no clear understanding of where and which products were displayed. Most planograms were approximate and created in Excel, and there was no person responsible for the process, with control taking place through messenger apps. Now, the entire process is streamlined and operates in one place thanks to the ABM Shelf web and mobile application.

28,3 %
Increase in Sales
26.3 %
Increase in Sales (Units)
23.9 %
Increase in Sales (per Meter)
19 %
Increase in Sales (per Facing Width)

Qualitative Changes

  • Merchandising has been allocated as a separate function.
  • Decisions regarding product placement are made exclusively by the company; suppliers no longer influence the process.
  • Planograms have become position-based, allowing for detailed analysis of their effectiveness.
  • The control function has been improved: regular online monitoring from the head office, selective audits of planogram execution in stores offline, as well as visits from top management to check compliance with the planogram displays.

Client Feedback

Serhiy

Planogram Optimization Specialist

ABM Shelf is an excellent platform for merchandising in our retail operations. We transitioned from basic spreadsheets to real visualization. The system has made the work easier both for the stores and the commercial department. There are many different reports. I highly recommend this platform to everyone.

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