FOR IMMEDIATE RELEASE
Outlook Strong for Direct Store Delivery Processes, Retailers Say DSD Sales Will Increase or Remain Constant in 2008
Contact:
Scott Openshaw, Director, Communications, 202-295-3957
Brian Kennedy, Director, Communications, 202-639-5994
August 19, 2008
WASHINGTON, D.C. – Seventy-seven percent of U.S.-based retailers indicate that in 2008, they expect their use of direct store delivery processes (DSD) will increase or remain constant, representing a significant opportunity to drive sales growth, according to Powering Growth Through Direct Store Delivery, a study released today by the Grocery Manufacturers Association (GMA) and conducted by AMR Research and Clarkston Consulting.
“Direct store delivery improvements represent manufacturer-customer collaboration at its finest,” said Stephen Sibert, GMA senior vice president of industry affairs. “This study indicates that both retailers and manufacturers are being rewarded for DSD innovations - from enhanced promotional effectiveness to increased brand and store loyalty.”
As evidence of the sales opportunity that DSD can create for retailers, the study notes that sales of DSD products account for 24 percent of unit sales and 52 percent of retail profits in the grocery channel. What’s more, seven of the top ten largest grocery categories employ DSD, and these categories experienced a nearly 15 percent growth in sales from 2003-2007. By placing supplier representatives in the store, the DSD model not only helps ensure proper execution of trade promotions but also contributes 25 percent of total store labor in the North American market.
“DSD offers unparalleled capabilities to meet shoppers’ needs,” commented Ann Dozier, The Coca-Cola Company’s vice president, collaborative customer capabilities and chairman of the GMA Direct Store Delivery Committee. “By collaborating with DSD suppliers, retailers can maximize operations while delivering a unique shopper experience at every store.”
The analysis, based on quantitative and qualitative research of DSD and non-DSD company environments, was initiated by the GMA Direct Store Delivery Committee. The study is available for download at www.gmabrands.com/publications/DSD_Report_FINAL_0808.pdf.
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Based in Washington, D.C., the Grocery Manufacturers Association is the voice of more than 300 leading food, beverage and consumer product companies that sustain and enhance the quality of life for hundreds of millions of people in the United States and around the globe. Founded in 1908, GMA is an active, vocal advocate for its member companies and a trusted source of information about the industry and the products consumers rely on and enjoy every day. The association and its member companies are committed to meeting the needs of consumers through product innovation, responsible business practices and effective public policy solutions developed through a genuine partnership with policymakers and other stakeholders. In keeping with its founding principles, GMA helps its members produce safe products through a strong and ongoing commitment to scientific research, testing and evaluation and to providing consumers with the products, tools and information they need to achieve a healthy diet and an active lifestyle. The food, beverage and consumer packaged goods industry in the United States generates sales of $2.1 trillion annually, employs 14 million workers and contributes $1 trillion in added value to the economy every year.
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