25 Jul 2007


Print	Email

How to merchandise the water category successfully for the summer months

Danone Waters

bottled water

merchandising

category management

Source : Danone Waters
Summer is here and the nation's thirst needs quenching! Statistics from Danone Waters, the UK's No. 1 Bottled Water manufacturer, show that the three months from June to August account for a massive 35% of annual water sales as the hotter temperatures drive demand for chilled water products.

Evian: bottled water sales rise with small temperature increases

Merchandising the category correctly in this critical period can make a real difference to turnover and profit margins over the hot summer months. Retailers can take full advantage by ensuring bottled water is given the space it requires in the chiller and by keeping shelves fully stocked.

Strategic placement of bottled water stock also plays an important role in driving incremental sales including utilising bulk stacks and dump bins. Although these products are displayed at ambient temperature, shopper research indicates that in hot weather and the absence of chilled water, shoppers will purchase ambient water in preference to other ambient soft drinks because of water’s ability to refresh, quench thirst and re-hydrate.

This proven correlation between water sales and temperature requires retailers to forecast purchasing patterns as sales can fluctuate significantly from day to day. It is easy to underestimate how quickly soft drinks will sell and retailers need to keep shelves fully stocked, especially throughout peak times. An easy way to keep on top of sales forecasts is to watch out for local weather reports.

Steve Flanagan, Category Strategy Manager at Danone Waters, comments: “A change in the temperature can trigger a noticeable effect on water sales. In terms of immediate consumption, if the temperature rises to 25c, retailers will see a 75% increase in sales, and if the temperature rises to 30c, water sales will increase by 125%, making it imperative to be fully prepared with the water chiller correctly merchandised for the hot summer months.”

The message is clear, for an increase in sales and profit this summer, bottled water offers retailers a huge opportunity. By keeping fully stocked with bottled water and merchandising correctly you have the potential to double your profits in this category the warmer the weather becomes!

Email this to a friend