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Repsly Inc.

Retail
Outlook
Report
FOR CONSUMER
G OODS LEADERS
Retail
Outlook
Report
FOR CONSUMER G
 OODS LEADERS

Written by Repsly
Edited by Caitlin Will
Copyright — Repsly Inc, 2023.
 2023 OUTLOOK FOR CONSUMER GOODS LEADERS

Contents
Executive Summary�������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 6

A Crisis of Confidence in Retail Execution Strategies and Plans ���������������������������������������������������������������������������������������������������������������������� 7

Key Takeaways and Recommendations������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 8

1 Demographics of Respondents���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 10

2 Ambitious Goals, Lingering Challenges, and Uncertain Plans ���������������������������������������������������������������������������������������������������� 14

3 The Present and Future of Field Teams �������������������������������������������������������������������������������������������������������������������������������������������������������������� 19

4 CG Investment Plan in Retail Technology ��������������������������������������������������������������������������������������������������������������������������������������������������������22

Conclusion����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������26

Why Top CG Brands Choose Retail Execution Tech �����������������������������������������������������������������������������������������������������������������������������������������28

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2023 OUTLOOK FOR CONSUMER GOODS LEADERS
A Crisis of Confidence in Retail
Execution Strategies and Plans
After two years of unprecedented upheaval and uncer-
tainty, 2022 found Consumer Goods companies hitting
their stride in the “new normal” of retail. Brands that
may have overinvested in eCommerce during the
pandemic renewed their focus on brick-and-mor-
tar sales—and with good reason: in-store shopping
has rebounded in a major way since the height of the
Executive
pandemic, growing at rates not seen in 20 years1, and
the balance between online and offline shopping has
settled back to its pre-pandemic levels.
Summary
This is important news for CGs to understand, and it also
means that getting consumers’ attention in-store is
more competitive than ever. The pressure is com-
pounded by several key challenges:
1  “State of Retail.” National Retail Federation. https://nrf.com/topics/economy/state-retail
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2023 OUTLOOK FOR CONSUMER GOODS LEADERS
1. With unemployment still at historic lows, field teams
are stretched thin.
2. Lingering supply chain disruptions and increased
demand make it hard to keep products on shelves.
3. CG inflation, which hit an all-time high in August, with
unit prices up +12% versus a year ago2, has affected
consumers’ shopping behaviors, driving them
toward cheaper brands, generics, and promotions.
To tackle these and other challenges facing Brands in
2023, hi­gh-performing retail execution teams, and the
tools to support them, will be absolutely critical.
2  Allison, Carmen. “Enduring Signs of a Consumer Recession: CPG Inflation hits an all-time high of
12%”. Nielsen IQ, September 20, 2022. https://nielseniq.com/global/en/insights/commentary/2022/
enduring-signs-of-a-u-s-consumer-recession-cpg-inflation-hits-an-all-time-high-of-12/
2023 OUTLOOK FOR CONSUMER GOODS LEADERS
Key Takeaways and
Recommendations
For this year’s Outlook Report, Repsly surveyed leaders
at 172 CG companies in North America and beyond,
asking them about their biggest challenges, their areas
of focus in the year ahead, and where they plan to invest
and why. There were two major takeaways from the data:
• Overall, respondents most frequently cited
their retail channel priorities as improving retail
exe­cution and operations, and growing sales.
• Respondents are going into the new year with
plans to grow their teams rather than investing
in technology, in spite of the fact that their most
significant challenge, like last year, is hiring and
maintaining field teams.
8 9
It’s not surprising to hear that so many CGs will priori-
tize retail execution improvement and sales going into
2023, given the current retail landscape. But why the
disconnect on the plan of attack?
We believe it’s because CGs have struggled to fully
realize the power of retail execution technology to
support their goals. They’re relying on old patterns
of thinking and operating, assuming that hiring more
people is the way to make progress. It’s an assumption
that risks backfiring.
Given the tight labor market and high turnover rates,
CGs may end up sinking valuable time and resources
into hiring and managing employees that could be
2023 OUTLOOK FOR CONSUMER GOODS LEADERS
better spent on improving their retail execution systems and
enhancing the performance of their existing workforce. Based
on these findings, we have two key recommendations:
Respondents are going into
1. CGs should consider how a strong, purpose-built, well-in- the new year with plans to
tegrated tech stack can help them meet their ambitious goals grow their teams rather than
without relying primarily on hiring new field team members. investing in technology, in
spite of the fact that their most
2. Companies not already using a hybrid field team model who are significant challenge, like last
having trouble building their in-house teams should consider year, is hiring and maintaining
bolstering their field operations with outsourcing. Agile field teams.
technology is vital here as well, to ensure consistency and
seamless integration, reporting, and communication across
in-house and outsourced teams.
2023 OUTLOOK FOR CONSUMER GOODS LEADERS 2023 OUTLOOK FOR CONSUMER GOODS LEADERS

Fig. 1: What is your company’s annual revenue?

1
Demographics
of Respondents

We surveyed more than 200 people at 172 CGs world-

wide, primarily in North America, across a broad range
of categories. Respondents spanned a variety of roles,
with the majority in sales, marketing, and account
management. As was the case last year, we found that
responses were relatively consistent across all categories.
Less than $25M $25 - $500M $500M - $1B $1B - $10B More than $1B

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Fig. 2: Which industry do you work in?

1. Apparel/Soft Goods
2. Beer, Wine, and Spirits
3. Distribution (in either of the above industries)
4. Electronics
5. Food and Beverage
6. Hard Goods
7. Health and Beauty
8. Pet Products
9. Retail Services (in either of the above industries)
10. Tobacco, Cannabis
11. Other

Fig. 3: Which department do you work in?

1. Account Management
2. Business Development
3. Human Resources
4. IT
5. Marketing
6. Merchandising
7. Operations
8. Sales
9. Trade Promotions
10. Other

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2023 OUTLOOK FOR CONSUMER GOODS LEADERS 2023 OUTLOOK FOR CONSUMER GOODS LEADERS

Fig. 4: Thinking of the retail channel, what are your

organization’s top 3 goals/outcomes in 2023?

2
Ambitious Goals,
Lingering Challenges,
and Uncertain Plans
1. Build stronger retailer relationships 4. Improve our retailer-aligned promotions 7. Manage store inventory and keep shelves full
2. Increase sales in stores 5. Beat/box out my competition 8. Connect real-life shopping experience with online
3. Recoup lost sales from supply chain issues 6. Create stronger shopper experiences 9. Other

When we asked respondents about their organizational retailer relationship with a new dedicated field team
goals for the retail channel, building sales and improving and Repsly. In 18 months, they rebuilt a strong part-
relationships with retailers rose to the top. Neither of nership and were named Vendor of the Year by that
these is surprising, given the effects of inflation. Many major hardware retailer.
consumers are putting price before brand loyalty and/
or pairing back their overall purchase volume, which Other high-priority goals for respondents were man-
eats into sales. Higher CG prices and frequent price aging store inventory and keeping shelves stocked,
changes have also increased tensions with retailers3. which likely reflects the combination of ongoing supply
chain issues and labor shortages [Fig. 4].
In this volatile climate, CGs that can leverage data to
deliver actionable insights to retailers will strengthen CG field teams will be major drivers of success in these
the brand-retail relationship and drive mutual business areas if they can execute successfully at the shelf while
growth. For example, one of our customers, a power also leveraging human relationships to help gain a
tools and equipment provider, leaned into a priority competitive edge.

3  Martino, Victor. “How to Improve the Strained Relationship Between CPG Companies and Retailers.”
Just Food, September 26, 2022. https://www.just-food.com/comment/how-to-improve-the-strained-
relationship-between-cpg-companies-and-retailers/

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2023 OUTLOOK FOR CONSUMER GOODS LEADERS 2023 OUTLOOK FOR CONSUMER GOODS LEADERS

Retail execution and operations are far and away the Fig. 5: Is your company able to fully meet its retail Fig. 7: How are you measuring the ROI of your field team? (Any key metrics, goals or outcomes?)
key macro area of focus for CG sales and marketing execution goals?
leaders in the coming year. When asked whether
they were currently meeting their retail execution
goals, the majority of respondents said they were Client feedback
either unable to or didn’t know, so it makes sense that
they’re doubling down in this area going into 2023. Retail Tech
How they plan to do it, however, is less clear [Fig. 5].
KPIs

Why are so many CGs struggling to meet their retail

Sales ROI
execution goals? When we asked about key challenges,
hiring and maintaining field teams topped the
Store visits
list, cited by 45% of respondents. Labor shortages,
high turnover, and insufficient funding to provide Cases & displays sold
adequate coverage are likely reasons. Other top
concerns included competition and establishing and In-house reporting

maintaining customer loyalty. This isn’t surprising,

Unsure
given the realities of inflation. With customers putting
price first, CGs need to be executing at the top of their Yes No I don’t know Other
game to showcase the value of their brands [Fig. 8].

There are other reasons CGs may be falling short of

their retail execution goals. Without the right tech- Fig. 6: What are the priority areas of focus for your Fig. 8: In your opinion, what are your company’s biggest challenges with retail execution?
nology, including integrated, timely data to help organization going into 2023?
brands optimize their merchandising and promotions,
successful execution is a heavy lift. Inconsistent exe-
Labor Management
cution across teams is another common challenge,
and may be a result of inadequate training, lack of
visibility into performance, or not having a means to
ensure accountability. Supply Chain Issues

E-Commerce Optimization

Retail Execution & Operations

Retail execution and operations are

far and away the key area of focus Cost Containment (related to inflation pressures)

for Sales and Marketing CG leaders

in the coming year.
1. Hiring and maintaining field teams
2. Capturing up-to-date data from the shelf
Other
3. Disconnected partnerships with retailers
4. On-shelf availability 7. Establishing and maintaining customer loyalty
5. Localization and distribution 8. Other
6. Competition

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3
The Present and
Future of Field
Teams

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2023 OUTLOOK FOR CONSUMER GOODS LEADERS 2023 OUTLOOK FOR CONSUMER GOODS LEADERS

Fig 9: Which of the following best describes Fig 10: In the next 1-2 years, we plan to…
your field team?

The survey incorporated responses of both CGs with exclusively in-house We outsource our field team We have a hybrid between an
in-house and outsourced team
Bring the field team in-house Keep a hybrid field team model
We employ an in-house field team Completely outsource the field team
field teams as well as those with a hybrid model, utilizing both in-house and
outsourced teams. Most respondents don’t plan to change their field team

66%
model significantly in the next 1-2 years, including those who changed it Fig 11: Do you have any plans to grow your Fig 12: Do you have any plans to outsource
during the pandemic. Prior to 2020, 46% of CGs with hybrid teams had an field team? your field team?
entirely in-house team. Only 18% of them now say they plan to bring their
field teams back in-house [Fig. 10]. CGs plan to grow their
in-house field team in 2023.
Of the respondents who have an entirely in-house field team, 77% don’t
plan to outsource either part or all of their team [Fig. 12]. But 66% of these
CGs plan to grow their teams in 2023 [Fig. 11]. That’s up a whopping 35%
from last year, when 49% of in-house-team-only respondents reported
growth plans. This is unexpected, given that so many organizations are
struggling to hire and maintain their teams. It appears to us that some
companies still reflexively assume that adding employees is the best
way to improve performance. They may be in for a big challenge in 2023.

It wouldn’t surprise us if some of these companies ultimately end up shifting

toward a hybrid field team model. By outsourcing high-volume execution
tasks, they can increase their coverage while keeping high-value, high-control
capabilities in-house. But to make the model work, they’ll need technology
with powerful integration capabilities to ensure a seamless handoff between Yes No, we are planning No, we are planning Yes, partially Yes, fully No
in-house and outsourced operations. on retaining the size of on reducing the size of
the team the field team

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Fig 13: What kind of software do you use to Fig. 14: Investment Plans
manage your retail execution program?

Excel or a similar platform Keep our investment level the same

No software

4 Software built and managed by our IT team

INCREASE our investment in RetEx technology

DECREASE our investment in RetEx technology

CG Investment Software provided by a 3rd party vendor

Plan in Retail Other I do not have this information

Technology CGs recognize that technology is a powerful way to improve efficiency,

accuracy, and reporting for merchandising and promotions: 69% of
respondents use retail execution management software, either from

2.8 times
a third-party vendor or built and maintained by their IT team [Fig. 13].

Given CGs’ aggressive sales and execution goals for 2023, and the
headwinds of inflation, labor shortages, and supply chain uncertainty, How much brands that
you would expect continued, strategic investment in technology. leverage technology
According to Forrester, brands that leverage technology to quickly outperform their peers.
adapt to changing needs and demands outperform their peers by
2.8 times4.
13%
And yet only 13% of the CGs we surveyed plan to increase their
investment in technology as a way of meeting their 2023 goals. A CGs we surveyed plan to
whopping 61%, meanwhile, said they didn’t know [Fig. 14]. increase their investment in
technology.

4  Witcher, Brendan. “Predictions 2023: Bold Shifts In Retail Models Will Be The Salve For Uncertain Times.” Forrester, October 26, 2022.

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Fig 15: Why do you plan to increase your investment in RetEx technology?

50% 90% Promotional execution

success rise

2 weeks after implementing

retail execution technology

+25% Increased national

account sales

1. Improve management of our field team
2. Improve management and insight into our retail data
3. Increase productivity and efficiencies
Fig. 16: What are the top 3 gaps in your technology solution for retail execution?
4. Increase sales at the point of purchase
5. Better control over products on the shelves
6. Increase insight into competitors’ strategies
7. Other
It’s possible that CGs are biding their time, waiting to
see whether the economy tips into recession in 2023
before putting more dollars into tech. On the other hand,
they may simply underestimate the power of the right Top two reasons for increasing
software to accelerate their progress. retex tech investments are
improving management of
The 13% of respondents that do plan to increase their field teams and increasing
tech investment are well aware of how it can be lever- productivity and efficiency.
aged to address their pain points. The top two reasons
they gave for upping their investment were improving
management of field teams and increasing produc-
tivity and efficiency [Fig. 15].

Indeed, the right software can have a major impact in

these areas, as we’ve seen firsthand. When Kraft Heinz
implemented retail execution technology for their field of
100 reps, they saw their promotional execution success
rise from 50 percent to nearly 90 percent and increased
national account sales by 25% in just 2 weeks.
Reporting Integrations Optimizing in-store Workforce Scheduling and Other
activities and time management planning

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2023 OUTLOOK FOR CONSUMER GOODS LEADERS

Conclusion
While the economic forecast may still be hazy, the opportunity for CGs is
clear. With retail sales continuing to grow, and three-quarters of total US
retail sales5 predicted to occur offline in 2023, brands that successfully
control execution at the shelf will capture consumers’ attention and dollars. Powerful, fully integrated retail
What’s less clear is how they intend to do it. execution software empow-
ers CGs to engage and retain
Our recommendation is that CGs think beyond staffing when it comes to staff, turn data into real-time
their strategy for building sales and optimizing retail execution. Powerful, insights, and use reporting to
fully integrated retail execution software can have a measurable impact get smarter about coverage
on the areas where CGs are most focused, empowering them to engage and compliance.
and retain staff, turn data into real-time insights, and use reporting to get
smarter about coverage and compliance.

At Repsly, we’re excited about what’s ahead in retail. We remain as com-

mitted as ever to helping our clients achieve and exceed their goals in field
sales, merchandising, and promotion execution, by delivering the solutions,
tools, and insights they need to win at the shelf.

If you’re ready to learn more about how modern technology can fuel your
field team’s success, we’re ready to chat.

CONTACT US

5  Witcher, Brendan. “Predictions 2023: Bold Shifts In Retail Models Will Be The Salve For Uncertain Times.” Forrester, October 26, 2022.

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2023 OUTLOOK FOR CONSUMER GOODS LEADERS
Why Top CG
Brands Choose
Retail Execution Tech
“Repsly put everything in one place and we could create
processes around training, and amplify success in regional
markets across the world.”
VP OF GLOBAL RETAIL DEVELOPMENT & TRAINING, NUTRABOLT
“They (reps) love how easy it is to use. They love how easy it is to
answer questions. It’s easy to check in and check out. I would say
that our retention’s gotten better. The feedback that we’re getting
back from our people is that they love the system.”
CEO, MARKET SUPPORT
“Repsly’s ability to start capturing the effect of the work we’re doing
helps us justify marketing decisions and ensure they are worthwhile
investments to make.”
DRINK CANN
“Repsly gives us a pulse on all of our field activities. It allows us to
understand our in-store conditions today and gives us the tools to
take corrective action tomorrow.”
MANAGER, RETAIL/SALES SYSTEMS, KRAFT HEINZ
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2023 OUTLOOK FOR CONSUMER GOODS LEADERS
“My merchandising team has been able to streamline virtually
everything, cut back on emails, and easily report on it all.”
DIRECTOR OF FIELD SALES, MILK MAKEUP
“I think the other thing that I’m always making sure is that they have
a work-life balance because in this role it’s very easy for you to be
able to just work 70, 80 hours a week….I always say if a hotel bed
feels more comfortable than your own bed, there’s a problem.
Utilizing Repsly to set up these account priorities has really been
helpful for that.”
NATIONAL TECH REP MANAGER, ALTRA RUNNING
“Without that field team, I don’t believe that we would
have been named Vendor of the Year because as much as
Power Tools a partnership we have with [our retailer], we have as much
of a partnership with Repsly.”
MANAGER, MAJOR POWER TOOLS COMPANY
“Repsly’s real-time data is a game-changer. When we have an idea
we try it out. The very next day, if it worked we double down. And if
it didn’t, we do something else.”
SALES MANAGER, UNREAL CANDY
“We’ve been fortunate to continue to grow exponentially over a
period during COVID where a lot of brands struggled. We just
accelerated even further. And using Repsly helped us guide
ourselves and guide our teams and even create competitiveness
and camaraderie between them.”
VP, SPINDRIFT
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