US FMCG companies end up spending $104 billion on poor in-store execution

New Ideas in MarketingEssential news for marketers, summarised by YouGov
May 22, 2019, 9:03 AM UTC

A research by Salesforce surveyed 500 global Consumer Goods (CG) leaders.

The findings state that 52% of marketing and merchandising plans are not being executed as intended in brick-and-mortar stores. The US market currently sees $200 billion annual spending on in-store merchandising and marketing. This means that CG companies are ending up spending $104 billion on poor in-store executions.

Currently, US FMCG companies earn $1.01 trillion, with traditional retail contributing to 95% of sales. 42% of CG leaders note that retailer’s challenges like margin pressure and store closings negatively impact their business. 

The data also revealed that 49% of CG leaders consider private-label brands by retailers to be a threat. Private-label products are certainly growing. For example, Costco’s brand Kirkland made $40 billion in 2018, an 11% jump from 2017. This was more than Campbell Soup’s, Kellogg’s and Hershey’s sales combined.  

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