Energy Story

P&G and Albert Heijn ProjectEvaluation highlights: 2007 - 2010

Organisations background

Established in 1887835 storesCompact hypermarkets,

supermarkets, convenience stores and home shopping

€ 10 billion in sales55.000 employees

Established in 1837Manufacturer of 200+

brands24 Billion Dollar brands$80 billion in sales130,000 employees

Project Overview

Before projectBatteries sold from

behind customer service desk

Sales slowSelling costs highShrink low in absolute

and % (0.1%)

After projectBatteries moved to open

sales at checkoutsSales increased by 86%Staff costs lowered Shrink - Absolute shrink

valued at cost of goods increases by 3714% and shrink as % of Sales moves from 0.1% to 2% of sales

Net Profit increases by 83%

In Store ImagesBefore project (behind

counter)After project (open

sales)

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0.51

1.52

2.53

3.54

4.55

5.56

6.57

7.5

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1

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11

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15

Duracel batteries shrink%Comparison counter to open sales

(18 months period)

mln

Losses in batteries as a % of sales sold from counterLosses in batteries as a % of sales sold in open sales Sales from counterSales in open sales near check-outLosses in batteries as a % of sales sold in open sales near check-out (linear)

Christmas

Summer

Catalyst for Further Sales

While store managers had confidence to move to open sales at the checkout, the buyer had continued challenges getting store manager support for secondary sites because of high shrink (12% of sales)

In response, P&G developed the anti-theft pack that was more difficult for thieves to conceal

With this solution, store manager confidence was restored and secondary sites were agreed.

Secondary Site Results

Unit included special pack features in week 18-19 and 27-28 (in Bonus folder) and a 4+4 free pack feature in week 30 (shipments FY0910)

Full support from Store managers

Delivered a 33% increase in sales

Questions to the audience

What are the good and bad take-aways?What would be project improvement

opportunities?What could be next steps?

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Next Steps

Continue to expand / sustain open sales on batteries

Address hot stores shrink:Assess scale of organised thieves threat.Assess other possible explanations,

seasonality?Identify new solutions

Assess anti-theft pack – return on investmentReflect on how learning’s could be reapplied

to other hot categories