Simply put, margin management is the practice of minimizing costs to maximize profit. And if you can’t make a profit, why stay in business? That’s why we’ve focused our recent posts on this topic. We’ve provided tips, techniques, and technologies retail grocers can use as part of their strategy to protect and improve their margins. For example, how to minimize waste due to product recalls, to optimize the types and quantities of prepared foods, how to save on labor costs with electronic shelf labels, and much more.
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Over the past few weeks, we have focused our articles on various tips, processes, and technologies which, when used as part of a retailer’s margin management strategy, can help you protect your bottom line. We’ve described ways to use data to optimize a prepared food strategy, trim unnecessary waste due to product recalls, even protect profit margins against the invasion of the dollar stores.
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With so much focus on the fresh food movement, we shouldn’t lose sight of the importance of a grocer’s prepared food items. There are still plenty of customers that don’t cook on a regular basis, or simply don’t have time in their busy schedule to devote to preparing food at home. And don’t forget that prepared foods—meats, salads, cold cuts, sliced cheeses, cakes, pies, and so on—are wildly popular for holidays and convenient for impromptu gatherings of family and friends.
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Over the past 12 months, three major E. coli outbreaks decimated sales of Romaine lettuce, rearranging and upsetting the salad bowls of America. Numerous salmonella scares caused recalls of eggs, chicken and turkey—not to mention nearly 20 million pounds of ground beef—from a number of different suppliers. And that’s just a fraction of fresh food recalls that made the news in 2018, and it doesn’t touch on recalls of packaged, frozen or prepared foods.
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The modern trend toward preparing and enjoying tastier, healthier and more sustainable foods continues, and it goes by many names. The fresh food movement. Slow food. Farm to table. These and many others are all delayed reactions to decades of fast and prepared foods and their effects on our culture, obesity, and our overall health. By and large, all these foodie movements have something in common. They reject unhealthy ingredients, additives, excess calories, and dubious nutritional value of prepared foods, not to mention lackluster taste, in favor of a flavorful and often (but not always) healthier dining experience—even if it costs more and takes longer to prepare.
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Ask any retailer, and you’ll be hard pressed to find one that isn’t worried about rising competition from online shopping. eCommerce technology solutions can help retailers fight back on that front. However, according to Forbes, the true disruptors aren’t online giants like Amazon or Walmart. Instead, there’s a quieter and stealthier threat to the strained margins of traditional grocers: the “dollar stores.”
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We are pretty proud of TeamTRUNO. From software programmers to administrators, support engineers to service technicians, TRUNO is comprised of a lot of talented folks working hard every day to bring leading innovation and reliable services to the retail marketplace.
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At TRUNO headquarters in Lubbock, Texas, we may not have snow for the holidays—it’s not even dipped to freezing this week—but we can’t help inserting the holiday spirit into everything we do this time of year. Lately we’ve written about what we’re so thankful for in 2018, as well as this year’s perfect Christmas gift for retailers. We even talked about how to stay jolly while protecting yourselves from holiday shoplifters.
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Each time I talk to a retailer about solutions that truly meet their unique needs, I’m reminded why I chose to come to TRUNO in the first place. I’ve experienced first-hand the challenges today’s retailers face every day, and I’m proud to be part of a team dedicated to helping them find their True North when it comes to retail technology.
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Over the past 3 months, there have been over 6,000 tons of beef recalled due to E. Coli and Salmonella contamination. For grocers, product recalls can cost precious time, money, and resources. TRUNO provides a meat grind management solution that can pinpoint recalled items and allow the grocer to act quickly to prevent the spread and consumption of contaminated products.
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