ICv2 has been publishing Channel Check articles for almost a decade now (see “Channel Check“), but we’ve never given a guide to help readers use those articles. In the interest of correcting this oversight, here is a brief overview of what the Channel Check articles are and how retailers can use them to inspire retail displays, store layouts, and more.
Channel check articles (see “Channel Check Search“) are meant to show a snapshot of the state of displays at mass and specialty retail chain stores (Walmart, Target, Barnes & Noble, etc.) so independent retail stores can gain some insight into what their largest competitors are doing and possibly adjust accordingly. The captions in the articles also provide some useful commentary about the displays as well as note trends going on in the stores.
There are many ways to use the information in these articles. Here are but a few suggestions:
Note what is on the shelves. Merchandisers don’t select products to stock for mass retailers by accident. They have done their research, gone to trade shows, and come up with what they think will be hot items. Taking a good look at the products and product selection that is on the shelves in Channel Check galleries can be incredibly helpful when making inventory decisions.
Note what is not on the shelves. There is a great deal of information that can be gained from an empty space on a retail shelf. Shelves that have little inventory on them could be because either this is the inventory that the mass retailer has removed from the shelf (aka “is clearing out”); this is a shelf that contained inventory that sold out fast; or this is a shelf that once contained Pokémon cards (a joke, but true). A lot of times stockists won’t immediately remove the shelf price labels, so retailers looking at a Channel Check gallery can see what item once occupied the empty space.
Note the Displays. Large retail corporations contract with merchandising companies or pay their own employees to plan their game displays. Channel Checks allow LGS retailers to take a look at displays in multiple chains without leaving their desks, which can help generate ideas for product groupings or other display elements.
Note the location of products. Large retailers do research on where and how items are placed to achieve maximum sales. An easy example of this is in the Channel Check pictures of cash wraps or checkout lanes; the items located there are generally impulse buys or items that need close supervision to prevent shrink (like TCG or sports cards packs). Recently the move of TCGs and other trading cards behind the customer service desk at some stores illustrated the challenges they’re facing in controlling purchase limits.
There are, of course, other piece of wisdom that can be derived from Channel Checks; the above four points are only the tip of the iceberg. Channel Check articles are available as part of the ICv2 PRO subscription. Please subscribe to ICv2 Pro, which supports ICv2’s business journalism; there’s a two-week free trial period!
Source: ICv2
