Marketing Procurement — Naked Shelves in the UK During Covid & Brexit Reveal POS Displays

Strolling through the UK supermarkets is one of our favorite things to do, as this is how we gather insightful topics for our case studies. But lately, we have been faced with gaps on the retail shelves and saw some of them naked for the first time. Marketing procurement for businesses in the UK is currently encountering disruption as the Brexit red tape and the implications of the COVID pandemic combined prevails in the country.

One of the retail stores we have recently visited is Boots UK, the leading pharmacy-led health and beauty retailer in the country. Upon walking on the store aisle, we can’t help to notice the unreplenished visual merchandising displays. 

Disruption on Marketing Procurement

Marketing procurement pertains to the process of finding and agreeing to terms, acquiring goods, and services from an external source.

The complete departure from the EU meant several new customs procedures and formalities, including new origin requirements. Prominently, the Brexit red tape is creating a far-reaching effect on retail marketing procurement.

Supermarkets rely on logistics and large goods vehicle drivers, but due to a shortage caused by Brexit, retail outlets can experience delays in shipment or can’t get goods on time or at all. Besides pandemic, companies are also blaming Brexit, pointing out that 15,000 European truck drivers left the UK last year.

On top of that, it pushes retailers to reassess their supply chains and marketing procurement strategies with distribution and logistics agreements, adding layers of complexity. Big supermarket chains, desperate to ensure their goods get to their stores, are offering drivers nearly double the going rate. They also need to hire new employees which drives them to pass that cost onto their customers.

Implications of the Pandemic

Evidently, the COVID-19 pandemic has generated a lot of negative implications in the supply chain that many retailers have suffered from. From panic buying when the pandemic has begun to supply shortage, travel restrictions, and business shutdowns. And for retailers who were unprepared for the tectonic shift the pandemic has brought, the impact surely has been devastating.

On the other side, it has also changed consumers’ behavior and how shoppers obtain their food and grocery goods. Food delivery services and online grocery shopping have undoubtedly skyrocketed amid the pandemic. This acceleration of trends has presented an opportunity for those who remained, which drives innovations and efficiency that stimulate primary category demand.

However, Brexit red tape joining the picture is another story to tell.

The Impact of Brexit on Retail

Months after the Brexit, we cannot deny how it is massively affecting the Retail sector. Even though the government is removing most pandemic restrictions from July 19 in England, allowing consumers to go to their local groceries and supermarkets freely, they are now being welcomed with empty shelves.

This time, we are able to see how POS display units look like without the products. Here are more unreplenished shelves we have seen. 

What Does This Observation Imply?

With our years of experience working for the retail sector, we are highly concerned with the current situation. The Brexit and the COVID pandemic combined have enabled us to see empty shelves and displays. This has given our team a unique opportunity to understand the business of POS displays.

Seeing naked shelves is more than what meets the eye. It is important to highlight how empty shelves could affect in-store retail marketing. Thus, issues such as a decline in sales and decreased foot traffic will surely emerge from supply shortages and low-performing retail displays.

We all know how important they are for augmenting retail marketing strategy and influencing customers’ purchasing decisions. Therefore, it makes the in-store competition tighter and causes more problems as the point of purchase displays are often not re-filled, and products are not well merchandised.

Our Role,

The ODM team is one of the leading sourcing companies, serving clients from almost every country globally. We are committed to gathering insightful topics and producing remarkable case studies to assist businesses and retailers in surviving even the most challenging times. Furthermore, ODM provides services, including planning, designing, and manufacturing custom promotional products and free-standing display units.

We have a committed team of merchandisers that will ensure effective logistics snd shipping management with proper planning management of the key supply chain stages. Therefore, making sure that the consignment is delivered to you efficiently. Should you have any queries, do not hesitate to contact us.

Looking for Brexit promotional products? Look no further! We have listed some of the notable branded promotional merchandise you can utilize for your next marketing campaign in this blog. Plus tips on how your company can navigate through the impacts of the Brexit red tape!

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A QR (Quick Response) code is one of the most powerful marketing tools that has been utilized when the pandemic started. It definitely made everything easier to access and comfortable to use. Surprisingly, you can also integrate them into your POS displays to further elevate your marketing campaign. Learn more interesting facts about QR codes by tapping the sketch below.