Henkel saw sales uplift and OOS reduction with Trax Retail Execution
Trax enabled Henkel to reduce OOS by 4.3% and see sales uplift of 2.1%. Headquartered in Germany, Henkel is a market leader in global beauty care. Its product offering encompasses brands across hair color, care and styling, as well as body, skin and oral care.
Henkel operated in a competitive retail environment alongside more than 35 retailers with varying store sizes. Additionally, it had more than 900 SKUs across its stores. Sales reps used manual methods to measure in-store distribution and shelf share, and spent a mere 10 minutes of every hour in the store in active selling. Further, this manual method did not provide the insight needed to identify and fix gaps in distribution, share of shelf, and merchandising compliance at the store level.
Trax Retail Execution helped Henkel monitor more than 900 SKUs across 2,500 stores in Germany. Sales reps were empowered to capture granular SKU level information that answered the following questions: Are the correct SKUs distributed in each category and each cluster? Which SKUs are missing the target distribution? Is the layout in each store correctly executed?
Increased sales activities
Time available for sales reps to engage in active selling increased by 150%.
Reduced audit times
Time spent on distribution checks and data collection decreased by 50%.
Gained actionable insights
Merchandizing managers identified poorly distributed products, measured share of shelf per banner for each brand, and in comparison to competitors. Account managers and category managers were able to make cross-customer/area comparisons to identify new opportunities.
By leveraging Trax for in-store execution, Henkel had accurate SKU-level insights which helped achieve a 4.3% reduction in out-of-stocks and realize a 2.1% uplift in sales.
The Bottom Line
With Trax, Henkel monitored nearly 500,000 products in just 3.5 months and identified over 20,000 that were regularly missing on shelves. Taking corrective action to improve distribution led to a revenue uplift of more than 2%.