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COLORADO SPRINGS, Colo. — A resource to help retailers, wholesalers and suppliers track and understand marketplace data was unveiled this month by Global Market Development Center (GMDC), a trade group serving members in the general merchandise (GM) and health, beauty and wellness (HBW) segments.
A resource to help retailers, wholesalers and suppliers track and understand marketplace data was unveiled this month by Global Market Development Center (GMDC), a trade group serving members in the general merchandise (GM) and health, beauty and wellness (HBW) segments.
The new resource, called the GMDC/Nielsen Hierarchy, aims to improve visibility into product segment activity, thereby putting retailers closer to their customers. It was jointly created by GMDC, Nielsen Co. and Radian Group. GMDC members can access the tool by logging into their myGMDC account and visiting the website’s Services Center.
In creating the tool, the partners applied a new hierarchy to general merchandise items to bring clarity to a number of front-end categories. The categories were established with input from retailers and consumers. More than 20 million UPC codes were part of the hierarchy, GMDC says. The hierarchy makes it possible to consistently code and follow all GM categories in the grocery channel.
There are 18 major categories identified and defined as Level 1 in the GM hierarchy, including apparel, baby, candy, pet and social expressions. Each Level 1 category is subdivided to make it easier to gauge channel activity and sales trends in the sector.
"The intent of the study is to advocate for general merchandise by presenting the facts related to GM, the interpretation of those facts and key insights that will allow both retailers and suppliers to take full advantage of the enhanced contribution margin and consumer loyalty associated with executing a comprehensive GM program," says Tom Duffy, vice president of industry services at Nielsen’s consumer group.
The hierarchy should help full-service grocer H-E-B improve its business, remarks Bill Anderson, group vice president of drug store, beauty, GM, floral and services at the San Antonio, Texas-based company.
"This will be the most valuable resource and useful tool to organize our GM and HBW aisles that we’ve ever had," Anderson says. "The collaboration and output between GMDC and Nielsen will quickly become an application our buyers will constantly refer to. The cost of such a program will pay dividends and change the way we see our business."
Others are also eager to start using the tool.
"We’re really interested in getting to know who the consumers are, what they’re looking for, what they’re shopping for and what their shopping behaviors are," says Cheryl Taylor, director of research marketing at Kinney Drugs.
