Retail Endgame: How First-Party Data Changes the Power Balance in Negotiations Between Retailers and CPGs

In today's fiercely competitive retail market, first-party data is emerging as a game-changer. Therefore, this report delves into how retailers, by leveraging first-party data collected from customer interactions, are revolutionizing their operations and gaining a competitive edge.

This shift, termed "precision retail", enables retailers to understand customer preferences at an unprecedented level, allowing for highly personalized shopping experiences and smarter decision-making. Retailers are no longer just product distributors; they are becoming experienced creators. By harnessing first-party data, they can optimize product assortments, enhance promotional strategies, and improve supply chain efficiency. However, this data-driven approach not only boosts customer loyalty but also strengthens retailers' bargaining power with CPG (Consumer Packaged Goods) companies during annual trade negotiations.

Historically, CPGs have dominated these negotiations with superior insights derived from panel data and proprietary research. Lately, the tide has been turning Retailers, equipped with first-party data, can now challenge CPGs with precise, SKU-level insights into customer behavior and assortment productivity. This transparency forces CPGs to adapt or risk losing shelf space. To stay competitive, CPGs must embrace this new reality by leveraging data to refine product assortments, innovate, and build robust strategies.

This comprehensive report helps you understand the strategic imperatives for CPGs in a data-driven retail landscape and learn how first-party data is reshaping the industry. Discover actionable insights to thrive in this evolving market and stay ahead of the curve. Read the full report to uncover the future of retail and how data is transforming the industry dynamics.