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Considering the current competitive landscape, manufacturers are becoming forced to continually innovate in order to compete for shelf space. Retailers, similarly, face daily challenges as they attempt to improve sales results on a year over year comparison, steering them towards differentiation from competitors, thus having an increased emphasis on new products.
Some retailers measure innovation in their stores by implementing an “innovation index” (sales from new items as a percentage of total sales) to the metrics used in supplier evaluations.
As these economic challenges and strategic initiatives converge, a manufacturer’s innovative efforts into today’s retail market may be met with an unprecedented rate of success.

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