Pet Care at Tesco: How In-Store Execution Gaps Are Hiding Millions in Revenue

The rustle of kibble bags, the colourful array of toys, the promise of a happy, healthy pet – the Pet Care aisle at Tesco is a battleground for brand dominance. But behind the carefully curated displays lies a harsh reality: significant revenue is being lost due to execution gaps at the shelf level. From out-of-stocks to misplaced products, the challenges are numerous, and the stakes are high.

The Scale of the Problem: Lost Sales and Missed Opportunities

The pet care category is booming, but even in a growing market, success hinges on securing and maintaining optimal shelf presence. However, widespread inefficiencies are undermining even the best-laid plans. Grocery retailers globally lose approximately 4% of sales to out-of-stock (OOS) events (ECR Europe / GS1, 2023). And while supply chain disruptions often grab headlines, the reality is that 72% of OOS situations are caused by poor shelf replenishment, not broader logistical failures (IRI Worldwide). This means that even if a product is sitting in the back room, it might as well be on another continent if it's not on the shelf when a customer reaches for it.

The problem extends beyond empty shelves. Planogram compliance, the adherence to pre-defined shelf layouts, is shockingly low. Only 55–65% of planograms are executed correctly at shelf level in a typical grocery retailer (EY Retail Execution Study 2023). This means that a significant portion of products are misplaced, incorrectly priced, or simply absent from their designated locations, leading to consumer confusion and lost sales. Misplaced products cost the grocery industry an estimated $3.4B annually in the US alone (FMI / Kantar 2023), and while specific UK figures are harder to isolate, the proportional impact is undoubtedly significant.

Why Current Approaches Fall Short

Traditional methods of monitoring and managing shelf execution often rely on manual audits and infrequent store visits. This approach is inherently reactive, providing a snapshot of the situation long after problems have already arisen. By the time a field rep identifies an out-of-stock or a planogram violation, valuable selling time has already been lost. Furthermore, the reliance on manual processes is inefficient. The average CPG field rep spends 35% of their time on admin and travel, versus only 40% on actual shelf work (Accenture Field Force Effectiveness 2023). This leaves limited time for proactive problem-solving and relationship building with store staff.

Another key challenge is the lack of real-time visibility into competitor activity. 68% of brand managers say they lack timely visibility into competitor pricing and shelf placement at store level (McKinsey & Company, "The New Retail Execution Imperative", 2023). Without this information, it's impossible to react quickly to competitive threats or capitalize on emerging opportunities. A competitor gaining preferential shelf placement or launching a promotional campaign can quickly erode market share if left unchecked.

The Cost of Inaction: Financial and Competitive Ramifications

The financial consequences of poor shelf execution are substantial. A single SKU out-of-stock for one week costs a top-50 CPG brand an average of $1.5M in lost revenue annually (Deloitte Consumer Goods Outlook 2024). While this figure represents an average across all categories, the impact in a high-velocity category like pet care can be even more pronounced. Moreover, the impact extends beyond immediate sales losses. Poor shelf execution can damage brand reputation, erode customer loyalty, and ultimately, lead to a decline in market share.

The competitive landscape is also becoming increasingly fierce. Brands are vying for limited shelf space, and those that can consistently deliver superior execution will have a clear advantage. A 10% increase in share of shelf drives an average 4.5% revenue uplift for mid-market CPG brands (NielsenIQ Category Intelligence 2023). Securing premium shelf positions, such as eye-level placements and end-caps, can deliver even greater returns. Kantar Worldpanel (2024) data shows that premium shelf positions deliver 2–3× the sales velocity of lower shelf positions. Failing to optimize shelf placement is akin to leaving money on the table.

What Best-in-Class Execution Looks Like

Best-in-class execution in the pet care aisle at Tesco requires a multi-faceted approach that combines proactive monitoring, data-driven decision-making, and strong collaboration with store staff. This starts with establishing clear and measurable key performance indicators (KPIs) for shelf execution, such as planogram compliance rate, out-of-stock rate, and share of shelf.

Next, brands must invest in tools and processes that enable them to track these KPIs in real-time. This includes leveraging technology to automate shelf audits, monitor competitor activity, and provide field reps with actionable insights. Furthermore, it involves empowering field reps with the training and resources they need to effectively address execution gaps and build strong relationships with store managers. Brands with real-time execution feedback loops reduce compliance gaps by 40% within 6 months (Gartner Supply Chain Insights 2023).

Finally, successful execution requires a culture of continuous improvement. Brands must regularly analyze performance data, identify areas for improvement, and implement corrective actions. This includes refining planograms, optimizing shelf placement, and improving inventory management.

The Role of Technology: From Reactive to Proactive

Technology is playing an increasingly critical role in transforming shelf execution from a reactive to a proactive process. Solutions like image recognition software can automatically analyze shelf images to identify planogram violations, out-of-stocks, and pricing discrepancies. This eliminates the need for manual audits and provides real-time visibility into shelf conditions.

Mobile applications can empower field reps with the information they need to address execution gaps on the spot. These apps can provide real-time alerts about out-of-stocks or planogram violations, enabling reps to take immediate action to replenish shelves, correct misplaced products, and ensure accurate pricing.

Several vendors provide these services, ThirdRetail among them. The best solutions integrate seamlessly with existing CRM and ERP systems, providing a unified view of shelf execution performance across the entire retail network.

A Forward-Looking Conclusion: Reclaiming Lost Revenue

The challenges of shelf execution in the pet care aisle at Tesco are significant, but they are not insurmountable. By embracing a data-driven approach, investing in technology, and empowering field reps, brands can significantly improve their shelf execution performance and reclaim lost revenue. The data is clear: even small improvements in planogram compliance and out-of-stock rates can translate into significant financial gains. It's time for CPG brands to move beyond traditional methods and embrace a new era of proactive shelf execution. The future of pet care sales at Tesco depends on it.

Sources

• ECR Europe / GS1 — Retail Execution & Out-of-Stock Research (2023)
• NielsenIQ — Category Intelligence & Promotion Optimisation Reports (2023)
• McKinsey & Company — "The New Retail Execution Imperative" (2023)
• Deloitte — Consumer Goods Outlook (2024)
• Kantar Worldpanel — Shelf Positioning & Shopper Behaviour (2024)
• BCG — Retail Execution Report (2022)
• Accenture — Field Force Effectiveness Study (2023)
• Gartner — Supply Chain Insights (2023)