Superstore layers in supermarkets: what is their strategic importance for brands?

Retail has its own language. At the heart of this jargon, "strata" occupy a central place.

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Whether we call them stratum, modulation or typology, their importance is crucial, yet they are still little discussed.

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In this article, we've compiled everything you need to know about supermarket strata. What they are, how they are determined and why understanding them is essential for any brand seeking to optimize its presence in supermarkets.

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To your notes? Ready to go!

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What is a supermarket stratum?

Strata are an internal classification of sales outlets (supermarkets, hypermarkets, mini-markets, etc.). Each stratum corresponds to the number of references (store assortment) that can be ordered by the store for a given product range. It varies from store to store, depending on the size of the department.

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Each stratum corresponds to an assortment. It is important to note that the store assortment is different from the brand assortment.

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When we talk about strata, we can also talk about modulation or typology.

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The names of the strata change each time depending on the brand:

• T = Carrefour
• M = Monoprix
• H = Auchan
• S = Cora

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That's why, when you're looking to be listed at Monoprix, you'll hear about Mod10, 20, 30, 40... and at Carrefour, T1, T2, T3, T4, T5, T6... Well, you'll hear about it. Store strata are difficult to obtain, since the store typology justifies your brand assortment in it.

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How are the strata determined?

A store's stratum or typology is determined by several criteria:

• The surface area of the store, which determines the surface area of the departments;
• Store location, which determines the size of the department and its position within the store.

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Depending on the store typology, the number of mandatory products (store assortment) will differ. In other words, the number of assortments per modulation/strate/typology is equivalent to the number of assortments per store.

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It's important to bear in mind that a store can have different strata depending on the department. The question to ask when allocating is: what size do I allocate to each of my product categories?

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Let's take an example. You are a beer brand, listed at Franprix Quai de Jemmapes, Paris. You have a multi-radius presence in this supermarket: both in the chilled section (at the entrance to the store) and in the drinks section (at the back of the store).

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You have two different assortments: beer in cans and single bottles in the chilled section, and 6- and 12-packs in the drinks section.

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Beer consumption is mainly focused on cold drinks, as the canal is nearby. This means that the chilled section has more floor space than the other sections (including drinks). Franprix therefore has at least two different strata: one for the store, and one for the chilled section.

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How can I find out the stratum of my stores?

As mentioned earlier in this article, this information is difficult to access as a brand and sector manager.

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To find out the stratum of your stores, you have several options:

• Ask: it's simple, but worth a try. Ask the floor manager and/or the store. They may sometimes agree, especially if you have a good business relationship with them.
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• Use kiosks: some stores have kiosks where you can scan product prices. Take your brand's products from the shelf and scan them. If a price is displayed, the product is in the mandatory assortment. You can then deduce the modulation.
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• Studying panellists: the role of panellists (IRI, Kantar, Nielsen...) is to advise chains on their store assortments, enable brands and stores to know market shares (different according to regions and consumption patterns) and understand market trends. The information provided by panellists helps to provide an agnostic view of the market, and to determine strata. You can then deduce the strata of your stores, or at least eliminate those that really don't fit.

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Why should I know the stratum of my stores?

Knowing their stores' typologies will help your sector managers to better negotiate their positioning and referencing, but also to increase sales through picking, by adding additional, out-of-range references.

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We'd like to take this opportunity to provide a few basic reminders about supermarket distribution. There are three main types of assortment:

• The common core: this corresponds to the minimum number of points of sale common to all chain outlets;
• The recommended optimum assortment: this theoretically covers all consumer needs to the level of their expectations, and is relative to the stratum or modulation of the store concerned;
• Optimally adapted assortment: in this case, the retailer's policy is an additional parameter that impacts the store's assortment.

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To add products outside the mandatory assortment - or TAC (tronc d'assortiment commun) at Carrefour - sector managers will look for the recommended optimum assortment. They then have two options for picking:

1. The product is basic, i.e. it is centrally purchased but not included in the mandatory assortment. This is often the case for independent stores (E.Leclerc, Intermarché, Système U...), which have a free choice of products on their shelves. In this case, the sales representative will sell the store new products, using a well-crafted sales pitch, and offer a special event, promotion or BRI for the occasion.
2. The product is not basic. In this case, the salesperson will make direct sales and place an order. It's therefore important to monitor delivery and shelving, and to ensure that the product is sold out before placing another order. In this case, the salesperson also proposes an animation, a promotion or BRI.

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Still vague? Let's get down to business!

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Two stores of the same size, but with different layers. Your brand sells several product categories, in 4 different departments.

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Here's the first store:

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This is the second store:

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Store 1 is a supermarket with a cheese offering that exceeds the national average.

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The sector manager therefore has a dual objective:

• Picking in the cheese dairy. He has 5 references to pick up.
• Use point-of-sale displays to maximise visibility and boost sales.

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The panelist's interest here is to understand the product's and brand's market share: listening to panelists helps negotiate and advise department managers.

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Your area manager will therefore negotiate with the floor manager to go and get the 5 missing references by highlighting :

• Loss of earnings: if the LOM is not respected, in terms of number of products or categories, the store risks selling less. Your sector managers can advise the department manager;
• Bonus to be gained: In store 2, you've succeeded in placing point-of-sale advertising in the cheese department. You have more SKUs than your sales margin, but you're selling well (thanks to your merchandising and positioning). Your area manager can therefore highlight the sales trend in store 2 to convince store 1 to do the same. There are a number of ways of doing this: your cash-out figures from store 1, your sales volume trends, merchandising placement analysis, etc.

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In store 2, you have succeeded in listing more cheeses than your PoW. This represents both a risk and an opportunity:

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If you have too many references, there's a risk of breakage. Especially with fresh produce.

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This allows you to position yourself better, and gain PdM.

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We advise you to place your innovations in this store. They will be complementary products to your flagship product, and will enable you to gain sales volume.

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Just a reminder: having a lot of market share doesn't mean having a lot of revenue, because... it depends on the market.

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The key to effective use of data in the field lies in personalizing the sales pitch to meet the specific needs of each store. Data can be used to create tailor-made recommendations, whether to adjust product layout, optimize visibility or suggest targeted promotions.

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After all, the department manager's aim is also to increase sales.

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