In his recently published article in Supermarket News, APT VP Jeff Campbell discusses how grocers should manage the risks and rewards of store upgrades.
Campbell outlines three questions to which grocers must know the answer to achieve the best returns on these large projects:
- What is the incremental impact of the initiative?
- What is the economic contribution of each element of the initiative?
- How will returns vary in different locations and markets?
“As grocers try to transform their stores into local destination spots, they must be able to innovate quickly. However, facilitating any proposed change haphazardly can lead to significant erosion to a company’s bottom line and reputation. To minimize the likelihood of incurring unnecessary costs or tarnishing the brand, grocers should test each new strategy on a smaller scale first to determine its true incremental impact. Executives can then act confidently in response to these data-driven insights — re-allocating funds to ideas that work and cutting investments to those that don’t,” Campbell concludes.
Click here to read the full article.