AUTOMOTIVE PARTS retailers invest extraordinary amounts of money, time, talent and energy trying to differentiate their stores from similar stores down the street.

Suppliers struggle daily trying to figure out what shelf assortment recommendations best fulfill consumer shopping needs.

About 20 years ago, the chief editor of an automotive industry publication, not this one, went on a weekend jaunt to Alaska. He came back incredulous at the signage in that state, reporting that the hotel sign said “hotel,” the bars were labeled “bar,” and stores of all kinds were signed “store.” Although he may have exaggerated a tad, the editor made his point. There was no brand or chain differentiation where he visited.

Today’s automotive parts retailers are certainly beyond that. We’ve worked, reworked, honed and tweaked our signage, and advertising and merchandising styles, so that customers can tell us apart from each other. Our public personalities, both physical and in ad media, are well defined.

So what? We’re missing the mark when it comes to the intellectual part of differentiation.

How? We don’t share precious data.

Our industry is at the point in the maze to success where there will be no more progress without sharing specific store customer and sales data. And we don’t.

We’re stalled on the way to the next step. We did it to ourselves.

Sure, there is national data, which reports what merchandise sold — even reports it SKU by SKU.

When you rely upon that information to plan your merchandising, you’re admitting that your auto parts store or chain is like every other in the nation. Maybe you should sign your store “auto parts store” and leave it at that.

Merchogramming presentations to retailers should be as close to lifelike as today’s technology can make them. No more black & white. Today’s computer output can sell the assortment.

Sharing data between stores and suppliers is no longer a nice idea. It’s critical for intelligent planning. Store owners with more than one location know that customers who come into one store do not necessarily resemble the buyers in the other stores within their chain. Sure, the stores may be in similar socio-economic neighborhoods, but they’re similar, not identical.

Those specials in Store A that move well may move verrrrrry slowly in Store B.

Vendor recommendations and decisions about your in-store assortment, which are solely made based on national data, aren’t worth a damn. They make a retailer’s store assortment generic, because they’re concocted from the national blend, not your specific ingredients.

The second open question is: Do you want to partner with your vendors in the process of getting to the most profits possible from your locations?

If you don’t answer “Yes,” generic’s your brand.

That’s too bad. You own the playing field (your store), and your suppliers have merchandise. Wouldn’t it make sense to jointly decide how best to use that field?

If “Yes” is your answer, open your data files to your vendors. They are prepared to use that information to help determine the optimal product assortment. The process is called category management. It involves sharing data with suppliers, choosing a lead supplier to plan the merchandise assortment for in-store categories, executing the plan, and watching sales and profits grow.

The Automotive Aftermarket Industry Association’s category management committee is breaking new ground in this area. Category management has been successful in other industries, like grocery and hardware. Now it has finally reached our industry. A properly Merchogrammed™ in-store section, which results from category management, combines merchandising and planogramming. It takes into account the relevant data available from both retailer and supplier. When the data is fairly analyzed without bias to the lead suppliers products, the planogram can change the sales dynamic of a store in favor of increased profits by as much as 30 percent. Why leave that unearned potential on the table? Every retailer wants its public to believe it is unique. By sharing your data with your supplier partners, you can be! Not only that, you’ll make more money from the same space.

In-Store Merchandising & Marketing Tip of the Month To retailers: Retailers, share your store data with your suppliers. Don’t be like the medical patient who goes to the doctor because he’s sick, won’t talk about symptoms, and expects the doctor to diagnose and cure the illness without clues. Put all your symptoms on your vendors examining table. You’ll feel better as you count your mounting profits. You’ll enjoy maximum results — greater store brand strength, and best sales. You’ll be a healthy automotive parts retailer. To suppliers: Translate the information your retailer customers share with you into crisp, easy-to-understand commercial presentations for your retailer customers. Make your recommendations for their in-store Merchogramming™ as close to life as you can. Use color-product-imaged planograms and BIG schematics so they can easily visualize displays. Black & white won’t do it. Words won’t do it. Blow them away with life-like planogram presentations.

Stephen J. Alexander, president of Automotive In-Store Marketing, is a member of Aftermarket Business’ Retail Advisory Board. To reach him at his Sanibel Island, Florida headquarters, call 239-395-9203, or e-mail, salexander@autoinstore.com.

COPYRIGHT NOTICE:"Reprinted with permission from Aftermarket Business, April, 2000, page 94. Copyright by Advanstar Communications, Inc. Advanstar Communications, Inc. retains all rights to this material." To subscribe to Aftermarket Business, call 1-218-723-9477 or email fulfill@superfill.com.