How to Expand Your Product Assortment at a Retailer: A Strategic Vendor’s Guide
For vendors already selling products at a retailer, expanding the assortment is a powerful strategy to grow revenue and deepen the partnership. But it requires a tactical approach. Retailers are strategic about shelf space and digital offerings, so any expansion pitch must be backed by strong data, consumer insight, and a clear value proposition.
Here’s how to effectively grow your presence and offerings at a retailer:
1. Leverage Data to Build Your Case
Retailers thrive on data. If your current products are selling well, you’re already in a prime position. Use this performance data to create a compelling case for why expanding your assortment benefits both you and the retailer. Highlight metrics such as:
Sales growth
Inventory turns
Customer demand trends
Gross margin improvements
You can strengthen your case by showing how your products outperform competitors, meet category objectives, or align with broader retail trends. Once you've demonstrated success with existing products, suggest that expanding the assortment can replicate these positive results across new categories or product lines.
2. Understand the Retailer’s Needs
Before pitching new products, dive deep into the retailer's strategy and current assortment gaps. Is there a trend they’re looking to capitalize on? Are there categories with unmet consumer demand? Understanding these pain points allows you to position your products as a solution.
Retailers want to know how your expanded assortment will add incremental value. Whether it’s by filling an underserved category, introducing exclusive products, or aligning with the retailer’s sustainability goals, tailor your expansion pitch to address their priorities.
3. Start with a Category Test
Retailers may be hesitant to expand an entire line at once, but they are often open to testing new products on a smaller scale. Propose a category test in select stores or regions to showcase the potential of your expanded assortment without requiring a full commitment. Testing allows you to prove consumer demand, gather insights, and fine-tune the offer before a larger rollout.
A well-executed test can lead to a broader category expansion while minimizing risk for both parties.
4. Offer Exclusive Products
One surefire way to stand out when expanding your assortment is by offering retailer-exclusive products. Retailers value exclusivity because it differentiates them in a competitive landscape and drives customer traffic. Consider offering products in limited edition packaging, exclusive sizes, or entirely unique SKUs that are only available at that retailer. This approach can strengthen the retailer’s relationship with your brand and incentivize them to take on more of your products.
5. Focus on Cross-Selling Opportunities
Expanding your assortment doesn’t always mean introducing a completely new category. It can also involve adding complementary products that enhance the retailer’s existing offering. For example, if you sell skincare products, you might introduce accessories such as applicators, beauty tools, or skincare kits. Highlight how these complementary products can drive higher basket size and encourage cross-purchasing among their customers.
Cross-selling opportunities are attractive to retailers because they increase customer engagement and average order value (AOV) without overhauling the product mix.
6. Invest in Consumer Insights
Backing your pitch with data from the retailer is critical, but don’t forget to bring your own consumer insights to the table. Conduct market research to identify trends and preferences within your target audience. Understand the needs and shopping behaviors of the retailer’s customers, and demonstrate how your expanded assortment will cater to those insights.
By proactively showcasing that you understand their consumers, you build trust with the retailer and prove that you’re thinking ahead.
7. Present a Strong Supply Chain Plan
Retailers want to know that if they expand your assortment, you have the logistics in place to support the growth. Before approaching them, ensure you have a strong supply chain plan that demonstrates your ability to scale production, meet demand, and deliver on time.
Retailers value consistency and reliability, so emphasize that your supply chain is optimized to handle an expanded product line without compromising on quality or delivery timelines.
8. Be Prepared to Collaborate
Expanding your product assortment is a two-way street. Be open to collaborating with the retailer on product development, pricing strategies, or promotional efforts. Some retailers may want input on packaging design or help in determining the right price points for their audience. Showing a willingness to adapt and collaborate on these initiatives strengthens the relationship and increases the chances of a successful expansion.
Conclusion
Expanding your product assortment at a retailer is both a growth opportunity and a relationship-building exercise. By leveraging data, understanding retailer needs, and showcasing your ability to meet consumer demand, you can make a compelling case for increasing your footprint. At GRN AMP Consulting, we specialize in helping vendors develop strategies for assortment expansion, driving value for both the vendor and retailer. Reach out to us today to learn how we can support your growth.
