A. M. discussed on Coast to Coast AM with George Noory


A. M. seven ninety two sons most stimulating talk or losing power or losing the power to dictate how products are displayed at the grocery store because those supermarkets now rely on their own data here's this weekend's Jennifer Katanga who decides what goes where in your grocery store it used to be that the best known food brands had the biggest say but is any guest bar of the Wall Street journal tells us that's rapidly changing any wire some traditional top sellers of package food losing sway in where their products go for many years it does big brands were the ones that were driving customers into the store so the retailers were happy to go along with whatever they said was best in terms of job placement to add items on shelves but Sheesh now that's not so much the case and and shoppers are buying more store brands and they're buying more needy should smaller brands that they might think are healthier or fresher so that's really it costing the big brands that leverage speaking of costing do companies pay more for prime space in a grocery store yeah it's called slotting fees and for many years that was why retailers were also just happy to give big brands of space because they were paying lots of money in the filing fees and while they might the retailers might have to forgo some of those fees if they stock more store brands they know that bear margins are going to be better and their sales overall for the category could go up if the if the analysis is correct any what is the best spot for products in the grocery store it depends a lot on the aisle you're talking about but for the most part in the area that they have done to the strike zone it should be and it just below the height of your eyes because your gaze is naturally a little downward and that space is more likely to catch the attention of shoppers and that's usually when everyone wants to be you mentioned it earlier the popularity of some store branded products are they selling better because they're cheaper or are people getting more interested in the is so what's the difference there retailers are putting more effort into their store brands are making them higher quality and more innovative hello that is making people more interested in buying the alternative and that is really giving the retailers a lot more power and leverage when it comes to controlling on shelves who is one of the issues here that there are just in some categories too many products I meant I I I went to buy mustard for example a couple of weeks ago and we were there used to be three brands and now it seems like they're eighty brands and there are consumers getting confused absolutely a lot of retailers are working on calling the variety of items that they stock and because of that the big brands have really lost from distribution they've been losing distribution on a monthly basis last year over year for the past at least fourteen months so it's starting to affect the amount of new products that big brands can come out with because basically if you're gonna come out with something new you have to replace something you can't just keep adding to the many varieties on child along that same line are we just getting a little more trendy yes the retailers are trying to take into account the latest diet trends and fads the keto fat is the one that everyone's watching closely right now and they want to make sure that when you're walking the aisles even if you don't want to buy the trendiest most expensive brand they want to have it so that you feel like you are shopping at a nicer friendlier person starts this weekend Jennifer because Shinko with Wall Street journal reporter Annie Gasparro it's thirty minutes now after the hour on this weekend.

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