High-Tech Methods Stock Shelves

Companies are using more consumer data to determine what goes into stores.

July 07, 2010

CINCINNATI - From eye-tracking technology to in-depth analysis of loyalty card data, retailers and manufacturers are turning to high-tech methods to determine what to place on store shelves, the Cincinnati Inquirer reports.

For example, Procter & Gamble is working with a Swedish tech company to use eye-tracking technology to figure out what shoppers look at on the shelf. Kroger??s is examining its loyalty card information to target individual shoppers with specific promos and coupons. Wal-Mart is redesigning more than 500 U.S. locations based on its in-house data collections.

"Retailers are becoming increasingly sophisticated about who??s shopping in their stores, who their best shoppers are, what they buy and why they buy," said Matt Nitzberg, an executive vice president with dunnhumbyUSA. He also helped write a book on shopper marketing.

"TV ads and in-store displays ?" that was the old way," said Nitzberg. "Now they can learn precise information about tens of millions of shoppers."

But despite the increasing sophisticated methods to reach shoppers, one thing has stayed consistent: consumer attention to price. With P&G and other brands shelling out more money than ever before on in-store marketing and promotions, the cost of the product still influences many shoppers?? purchasing decisions.

"The only winner in this price war is the consumer," said analyst Bill Chappell.

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