Shaping Success in the Evolving Retail Space

Cathy Shifflett, director of retail sales at BelGioioso Cheese, has a diverse career spanning manufacturing, supply, and retail. With a focus on sales and merchandising, Cathy served as VP at Top Supermarkets in Buffalo, overseeing procurement, category management, and a $2.3 billion P&L. For the past four years, she has excelled in her role at BelGioioso Cheese, specializing in Italian specialty cheese and overseeing retail operations.

Please tell our readers about your current roles and responsibilities at your organization.

Throughout my career, I've navigated roles within both manufacturing and supply sectors, as well as retail, primarily focusing on sales and merchandising functions. For seven years, I served as the Vice President of the Center Store at Top Supermarkets in Buffalo, New York. In this capacity, I oversaw procurement and managed category management teams, handling aspects such as assortment, pricing, and private label for diverse product categories including dairy, frozen grocery, general merchandise, HBC, and gas. During this period, I managed a $2.3 billion P&L and led a team of 50 individuals.

Approximately four years ago, I transitioned back to the supplier side, joining BelGioioso Cheese. At BelGioioso Cheese, we specialize in Italian specialty cheese, prominently featured in the deli departments of numerous supermarkets and mass retailers. In my current role, I am responsible for overseeing the retail aspect of the business, a position I have held for the past four years.

What are some of the recent trends and challenges impacting the industry?

The onset of the COVID-19 pandemic brought about significant changes, emphasizing the paramount importance of maintaining a robust and healthy supply chain. Over the past two years, there has been a heightened emphasis on the capacity to fulfill orders promptly and comprehensively. Additionally, a pervasive challenge has emerged in the form of labor shortages, compelling many retailers to outsource the production of items such as pizzas, sandwiches, and pre-cut cheeses due to the scarcity of skilled labor.

“Retailers are increasingly leveraging technology to analyze factors such as inventory turnover, profitability, and pricing models. The utilization of data has become a cornerstone for making informed and strategic decisions.”

From a supplier's perspective, this evolving landscape demands a more thoughtful consideration of execution strategies. It necessitates contemplating how products will reach stores, their display in stores, and ensuring a seamless customer experience in acquiring the items. The focus has shifted towards a more meticulous evaluation of the entire process, beyond merely delivering products to stores.

On the technological front, a noteworthy transformation involves the growing significance of data. Previously, strong relationships and goodwill played a pivotal role in product sales. However, the current landscape demands a more data-driven approach. Retailers are increasingly leveraging technology to analyze factors such as inventory turnover, profitability, and pricing models. The utilization of data has become a cornerstone for making informed and strategic decisions.

Retailers are now delving into their data, using it more effectively to gain insights and make smarter decisions. Challenges arise as retailers scrutinize promotions through sophisticated models to ascertain whether they result in incremental sales or merely cannibalize existing ones. This analytical shift has prompted many retailers to establish dedicated departments focused on pricing and promotional analysis.

How do you envision the future of space?

I believe it's somewhat premature to definitively predict the role of AI in shaping the future of space. It's challenging to ascertain how AI will specifically contribute to business operations, such as determining carried items or optimizing store setups. Nevertheless, I anticipate a growing significance of technology and data. The evolving landscape poses a kind of mathematical challenge for retailers and suppliers aiming to meet sales and profit targets amidst numerous variables. Adopting a strategic, long-term perspective will likely become imperative.

Considering the changing dynamics of customer behavior, the concept of the omnichannel customer is gaining traction, even though widespread online grocery shopping is not fully realized yet. Retailers and suppliers need to enhance their sophistication in planning for this evolving trend. The ongoing consolidation in the grocery sector, whether through major acquisitions like Kroger buying Albertsons or supplier mergers, adds an intriguing dimension to future developments. At present, a notable challenge lies in transitioning from growth driven by recent price increases to achieving genuine unit or volume growth.

What are some of the recent project initiatives that you have been a part of?

One of the recent project initiatives I've been involved in revolves around enhancing shelf productivity. In the current landscape where retail space is constrained and assortments are shrinking due to limited labor, we are strategically focusing on maximizing the productivity of our products on the shelves. As the leading brand of Italian cheese in supermarkets, we are analyzing and optimizing our skus to ensure that placing our product in a slot outperforms competitors, often resulting in a two to threefold increase in sales. Our approach involves presenting data-supported decisions that demonstrate a tangible financial impact, emphasizing the potential for incremental sales and profitability.

Additionally, we are delving into analyzing "leakage tree" data specific to each retailer to identify areas where they are losing sales to competitors. This information enables us to collaborate with retailers in crafting effective plans to capture more consumer dollars, including optimizing pricing strategies. Overall, these initiatives aim to take a broader perspective, extending beyond short-term goals, and establishing a framework for sustained growth over the years.

What advice would you offer your peers on how to navigate through this evolving landscape?

I'd advise my peers to prioritize the fundamentals. Recognize that a significant portion of sales often comes from a select few items. Ensure that aspects like pricing, shelving, and assortment align with these key products. Additionally, fostering strong partnerships with suppliers is crucial. For retailers, effective business planning with suppliers, setting growth goals, and utilizing available tools can be instrumental. Emphasize a willingness to experiment and test new strategies. Even if an approach fails, the valuable insights gained contribute to ongoing learning and success-building. Don't hesitate to test initiatives, and the flexibility of our industry allows for quick adjustments and refinements based on experience. For instance, implementing a shelf analysis at one or two retailers initially before expanding or refining the approach as needed showcases the iterative and adaptable nature of our industry.