Business

Data Earns Respect in Big

Data Earns Respect in Big-Box Retail

Understand the whole category, not just your product.

Data Earns Respect in Big

Getting a product onto the shelf at a major retailer is a milestone. Keeping it there, growing the assortment, and becoming a strategic partner is a very different challenge.

As the CEO of Traverse Group, I have spent years working with manufacturers that want to build their businesses with retailers like Walmart, Lowe’s, and Home Depot, among others. One lesson comes up repeatedly: Product expertise gets you into the conversation, but category expertise is what earns credibility and longevity.

I remind our clients that retail buyers are not responsible for the success of their brand or product. Buyers are responsible for the performance of an entire category. That means every supplier is evaluated through a larger business lens. Will this product grow my category? Will it take share from a competitor or simply cannibalize something already on the shelf? Is the price point right? Can the item maintain velocity after launch? What happens when the season changes? Knowing the answers using solid data is where category expertise earns respect from retailers.

Category expertise changes the conversation

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The strongest suppliers do not walk into

The strongest suppliers do not walk into a buyer meeting and talk only about their own SKU. They understand the total shelf, the shopper, the competitive set, the price architecture, the promotional calendar, and the patterns behind the category’s performance. For suppliers preparing to approach a big-box retailer, I look for four readiness signals that separate category-aware operators from brands simply hoping for distribution:

1. Market share data: Know where the business is moving

Market share tells a retailer more than who is winning. It helps explain where their category is shifting. A supplier should understand its own share, the share held by major competitors, which segments are gaining or losing ground, and where meaningful white space exists. If premium products are gaining while opening price points are declining, that should affect assortment strategy. If one format is taking share from another, that may signal a change in shopper expectations.

The goal is to turn the data into an actionable point of view. A strong supplier can say to the retail buyer, “Here is where the category is growing, here is the customer driving that growth, and here is how our assortment helps you capture more of it.” That is a much stronger conversation than simply saying, “Here is why our product is better.”

2. Pricing elasticity awareness: Know what happens when the price moves

Because pricing is a demand decision, suppliers need

Because pricing is a demand decision, suppliers need to know how customers respond when prices increase, decrease, or move through promotions. A product may generate excellent velocity at $19.99 but lose too much demand at $24.99. Another may support a higher price because shoppers value the brand, feature set, or performance advantage. Understanding elasticity also improves promotional planning. If a discount generates volume but destroys margin without creating incremental customers, the promotion may not be doing its job. Big-box retailers balance value, margin, traffic, and competitive pricing. Suppliers who understand those tradeoffs can participate in the business conversation instead of simply reacting to price requests.

3. Competitive velocity insights: Know what actually moves

Competitive velocity helps suppliers understand how quickly comparable products sell, how much revenue they generate relative to shelf space, and whether new items add incremental demand or simply shift sales among similar products. At Traverse Group, we know this is especially important during line reviews because retail buyers have finite space with many suppliers asking for it. If you want to replace an incumbent item, add a SKU, or expand a program, you need a credible argument for why that space will work harder. We know that the best suppliers explain how their products perform, how the competitive set performs, and why a proposed assortment improves the category overall. That is category expertise in action.

4. Seasonal performance trends: Know when the category wins

Most categories have a rhythm. Home improvement categories can move with weather, project cycles, holidays, and regional conditions. General merchandise can spike around back-to-school, gifting periods, outdoor seasons, or major promotional events. Even relatively stable categories often have predictable peaks and valleys. Being a strategic category supplier, you should understand when demand starts, when it peaks, and when inventory needs to arrive—and lend promotional support when it’s most productive.

Category expertise means understanding the timing well enough

Category expertise means understanding the timing well enough to influence forecasts, inventory, displays, promotions, digital content, and replenishment before the opportunity arrives. By the time retailers can see the seasonal spike in the sales report, the best-prepared suppliers have already acted on it.

Become the supplier that improves the category

Big-box retail is too competitive to approach with a product-only mindset. The brands that create long-term value help buyers see their category more clearly. They bring market context, anticipate pricing reactions, understand competitive productivity, and plan around the real demand curve. Simply put, they make the category buyer smarter and the retailer’s decision easier.

Before your next Walmart, Lowe’s, Home Depot, or other major retail meeting, ask your team, “Do we understand this category well enough to help the retailer run it better?” If the answer is no, category expertise needs to become a priority before the retailer’s next line review. Build that capability internally or work with strategic partners that live inside the data, rhythms, and expectations of big-box retail. A solid product and distribution may get your product onto the shelf, but category expertise gives the retailer a reason to keep you there, expand your business, and treat you as a growth partner.

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Source: www.inc.com

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