Case study Leading Paint Specialty Retailer.pdf
Shelf Gaps Are Revenue Gaps: Uncovering a $200M Opportunity
SITUATION
A leading paint specialty retailer sought to understand the direct relationship between on-shelf availability (OSA) and store-level sales performance across its retail network. Inventory systems showed what was shipped to stores, but there was no reliable way to know what was actually on the shelf at any given time, or how much availability gaps were costing the business. Using Pensa’s Vision AI, the retailer gained continuous visibility into actual on-shelf conditions across 94 test stores, segmenting locations by OSA performance tier to quantify the true revenue cost of execution gaps and the opportunity of closing them.
OSA TIER vs. SALES PERFORMANCE
KEY ACTION
Using Pensa’s Vision AI, the retailer gained real-time visibility into on-shelf availability across its store network, uncovering a direct, measurable link between shelf execution and sales performance. The data established a clear, actionable case for prioritizing availability improvements across its ~5,000 locations, unlocking an estimated ~$200M in total network sales potential.
- Below 50% OSA is a critical tipping point. Stores falling below this threshold do not just underperform, they actively hurt revenue, making sub-50% OSA stores the highest-priority intervention target.
KEY INSIGHTS
Sales performance is directly driven by OSA. Stores with high availability (80–100%) grew sales by +11.1%, while stores with low availability (0–49%) experienced active revenue loss of -5.7%.
Timely action on shelf gaps requires network-wide visibility, not reactive store audits. By expanding its Pensa partnership to 450 stores, the retailer gained the continuous shelf intelligence needed to identify and prioritize OSA improvement opportunities before they become revenue losses.
$200M Annual Revenue
Annual Revenue Opportunity Identified
- Shelf execution is a continuous, scalable lever — not a one-time fix. With Pensa’s shelf intelligence extended across a larger share of its network, the retailer is actively closing execution gaps and driving ongoing OSA improvement at scale, making availability a managed business driver.