Stronger collaboration between travel retail operators and vendors has been identified as an important indicator of travel retail business success in challenging macro-economic conditions, research from Advantage Group International indicates.

According to the annual Advantage Travel Retail Survey, which allows respondents to evaluate key vendors on a set of 30 distinct practices, ‘collaborative joint business planning’ leapt into the top ten priorities for retail operators this year – up from a rank of 22 in 2015.

Nestor Sanajko, Senior Manager, Global Business Development commented: “This is significant and perhaps not a shock. The macro and micro economic challenges both vendors and operators are facing highlight the value of close partnerships and the need to create those synergies together, especially through troubling times.

“We have included sample commentary of some of the best in class vendors in this area. The question we ask is how well are your teams executing their JBP’s (joint business plans) with your operators and could they be better? Our goal is to help our clients move from strength to strength.”

In a selection of anonymous comments made available to TRBusiness, one Middle East operator said: “This vendor provides a joint business plan. We know where we stand in regards to their strategy. They listen to our objectives and goals and they try to put together a joint business plan which will bring benefits to both parties.”

MARGIN LEVELS ‘TOP PRIORITY’

The insight on joined-up business planning comes as Advantage highlights retailers’ most critical vendor priorities from its annual survey.

According to the insight, the top three priorities remain unchanged from 2015 with retailers, unsurprisingly, ranking as their top priority ‘brands and products that provide adequate margin levels’ (85), on a scale of 0 (not important) to 100 (most critical).

‘We find this practice not only critical to the retail operators in travel retail, however, most countries across the world where we run the programme for the local domestic market – we find it a top priority there as well,’ Advantage notes.

The second ranked priority on vendors was ensuring ‘good stock availability/minimal out of stocks’ (81), while ‘delivers orders at the date and time requested’ (78) followed in third.

Advantage International points out that the second and third ranked priorities are rooted in the supply chain and getting these ‘basics’ right would help build favourability with retail operators.

Advantage recently launched its 2017 annual survey. For further information, contact: [email protected]