RETAIL AUDIT: Unlocking the Power of Retail Insights
The unprecedented ‘invisible enemy’ has taken a toll on the markets across the globe. Yet, certain businesses have had a windfall. For example, e-commerce in Saudi Arabia saw a significant shift in consumer behavior. As a result of the lockdown, E-commerce in the region is experiencing a rapid spike in growth during the outbreak. This seems to be case with most other countries.
In late March, the local online retailer, BinDawood Holding reported that, since the escalation of the Coronavirus crisis, its average sales every week had increased by 200%, and its average order value spiked by 50%, while the app installations increased by 400%. As a result, all 72 stores of the company remain open, while it has even hired new packers and drivers to handle the sudden uptick in online demand.
One of the leading Saudi grocery delivery apps Nana (نعناع) has also benefitted from the change in consumer behavior towards online shopping. The company is in the process of raising USD 18 million in a Series B funding round in late March to expand operations beyond the Kingdom and across the Middle East. The company has increased capacity multi-fold following a surge in demand.
Even though Retail Audit is a great window for the brands to understand the product, category, and brand movements across a certain period regardless of the market situation, it can become a fantastic choice during the current Covid-19 situation.
What is a ‘Retail Audit’?
Retail Audit or Retail Measurement is the study of retail outlets, wherein the market research service provider would gather information on a brand’s or category’s sales volume, trends with sales, the stock levels, the impact of in-store display and marketing efforts and other associated aspects.
The objective of the Retail Audit is to measure the brand’s performance in terms of inventory levels, availability of the products, quality of the products vis a vis competition, shelf life, reorder level, maximum retail price, discounts, and other BTL activities and several other data points that would help the company to measure the performance of a brand.
4 Steps of Retail Audit/Measurement Methodology
- Establish Universe: Define store types to be represented and gain information on shop numbers & turnover.
- Design Representative Sample: How many of each store type do we need to represent the universe with a given margin of precision?
- Data Collection / Statistical Expansion: Establish the best system of data capture
- Analysis and Interpretation: Report the trends and scope of the task decided.
Contact us for more information on how to get Retail Audit data for brands across the Middle East.