One of the main elements in our lives that we tend to take for granted, energy, has been gaining popularity due to climate change. Every day, more people are gaining awareness about the value of the catalyst that brought humankind to where it is today. And with the energy crisis of today, new conservation measures and regulations emerge to save every drop of energy. On the retailer front, things may take a more dramatic turn, but there’s no need to get upset, as problems give birth to solutions that may open brand-new ways of innovation. In this blog, we’ll explore how retailers can adapt to the new energy regulations by shelf replacement, taking advantage of artificial intelligence and image recognition technology.
American Innovation and Manufacturing (AIM) authorized the Environmental Protection Agency (EPA) to phase down hydrofluorocarbon refrigerant greenhouse-gas emissions by 85% by 2036, which requires retailers to take measures on the refrigeration front.
Thankfully, going greener with what you have in hand is possible with better shelf placement strategies. Let’s dive into how retailers can create better shelf positioning.
What is Shelf Replacement in the Retail Industry?
In short, shelf replacement is a technique that retailers use to maximize the sales of their products. The idea behind shelf replacement is to ensure that the products on the shelves are visible, appealing, and placed efficiently to take up as little space as possible.
For a couple of years with new energy saving measures, it has become even more essential to use refrigeration in the most efficient way possible. Since there are many types of refrigerated products available in a regular grocery store, the challenge may become a little complex.
Vispera works with all types of display equipment, and retailers can reach all channels such as coolers, shelves, cabinets and more with flexible and reliable data collection tools.
What is Shelf Strategy?
A good shelf strategy isn’t about piling up the shelves, or in our case, refrigerators. You should set up a balanced system. Let’s think about a frozen products fridge that’s been stocked full. If the customer spends too much time finding the product they need, it leads to more energy consumption, and more importantly, poor customer satisfaction. As we’ve stated above, all items should be visible.
In today’s climate, it’s even more essential to follow a solid strategy with planograms, shelf tracking, and a-grade space planning.
As a retail execution solution, we’ve been studying new digital shelf & shopper strategy and retail space planning solutions that are powered by image recognition and AI technologies.
5 Effective Ways for Saving Energy in Shelf Replacement
As energy prices are peaking, retailers are searching for energy-efficient ways through digitalization. In the U.S., cooling costs can get as high as 60% of total energy costs in grocery stores. Here’s what grocery retailers can do to maximize their cooler efficiency and reduce energy costs.
Visibility is the Key
Reducing the time that customers spend with open chillers directly lowers energy consumption, and the best way to do that is to show customers what they need before they even reach for the refrigerator. Therefore, investing in vertical coolers is the best way to go.
Avoid Open Displays
Open cooler displays are a thing of the past. Yes, they ease the process for shoppers, but in today’s circumstances, using them is like throwing money into the garbage. If your stores still vastly rely on open displays, try replacing them with vertical, more energy-efficient ones. If that’s not the option, utilizing them for products that don’t need extreme cooling might be the best option.
Monitor Every Cooling System, Continuously
One of the biggest mistakes would be to continue cooling equipment monitoring in a conventional way. Instead, a simple camera system can handle the monitoring, leaving no room for errors. For example, Vispera’s Shelfsight solution monitors all of the shelves, refrigerators included, and notifies field teams instantly if there’s any problem, such as empty coolers, missing products, etc. With Shelfsight, executives get detailed reports on the shelf/cooler management status of each store. Shelfsight also tracks what’s on the shelves with advanced planogram software, without the need for opening refrigerator doors, which is also a plus for energy efficiency. All with the power of visual intelligence technology.
Don’t Stack Up
Giving refrigeration systems space is essential for high efficiency. So, placing products on shelves in a way that lets cool air flow freely is critical. Another way stacking up lowers efficiency is customer satisfaction, as overstacking may lead to disorganized shelves.
Categorize Products in a Harmony
Giving customers an easy shopping experience is the first duty of grocery retailers, and what feels better than grouped items? Placing beverages and frozen vegetables is never a good option.
Related Blog: Is Cross Merchandising Essential for Grocery Retail, and What Should be Considered for Better Execution?
Placing products that relate to each other is the most rational way to go. But what works better is, knowing the customer journey and making placements that increase sales. Fortunately, you’re in good hands.
Meet Vispera, Your New Store Analyst
Vispera helps retailers in many ways with image recognition and analysis technologies, and our shelf-top system, Shelfsight, is here to monitor all shelves with planogram compliance to notify you if anything goes wrong and give you the best shelf positioning strategies.
With Shelfsight, retailers can;
- Explore the best product placement on shelves with planogram compliance,
- Create better shopping experiences for customers by enhancing on-shelf availability and product visibility,
- Find out best-selling products without any human workforce,
- Track in-store KPIs automatically.
Vispera’s mobile device-based solution, Storesense, on the other hand, creates a more collaborative retail execution between CPGs and retailers.
With Storesense, retailers and CPGs can;
- Self-audit and track KPIs,
- Increase productivity & team performance,
- Track shelf positioning & competitors with a mobile device-based approach to image recognition technology.
Request a demo, and see how Shelfsight works in real-life scenarios.