Positive outlook forecasted for retail direct store delivery sales

WASHINGTON Most retailers that operate direct store delivery processes have said that they expect that part of their business to grow or remain constant for 2008, according to a study released today by Grocery Manufacturers Association. The study, titled “Powering Growth Through Direct Store Delivery,” was conducted by AMR Research and Clarkston Consulting.

Study results showed that 77 percent of retailers examined said that their DSD business is growing or remaining stable. The study also showed that DSD comprises 24 percent of unit sales and a whopping 52 percent of the grocery channel’s retail profits. According to GMA, this means sales opportunity.

“Direct store delivery improvements represent manufacturer-customer collaboration at its finest,” Stephen Sibert, GMA senior vice president of industry affairs, said. “This study indicates that both retailers and manufacturers are being rewarded for DSD innovations from enhanced promotional effectiveness to increased brand and store loyalty.”

GMA’s findings also stated that seven out of the ten biggest grocery categories use DSD, and between 2003 to 2007, they saw 15 percent growth in sales.

The study on DSD was conducted by GMA Direct Store Delivery Committee and was based on both qualitative and quantitative research on companies that use the practice and those that do not, as well as company environments. Findings are located online at www.gmabrands.com/publications/DSD_Report_FINAL_0808.pdf.