Retail and consumer goods
Numeric distribution
The share of all relevant stores that stock a product.
Facts checked against sources onWhat does Numeric distribution mean?
Every store counts equally, big or small. Example: a drink is stocked in 30,000 of 100,000 grocery stores, so numeric distribution is 30 percent. It is a key measure for brands selling through general trade, where reaching more shops is a main route to growth. Retail audit firms such as NielsenIQ measure it. Compare weighted distribution, which gives more weight to stores that sell more.
Example
Numeric distribution is the number of stores that stock a product divided by the total number of stores in the universe being measured, for example all grocery stores in a country.
Where does it come up in case interview prep?
- The funnel and conversion maths: reach, consideration, trial and repeatLesson in Customers and growth: the economics of marketing
- Using this in a case: growth and new product casesLesson in Customers and growth: the economics of marketing
- How consumer goods companies make moneyLesson in Consumer packaged goods (FMCG)
- Distribution, promotions, private label, and innovationLesson in Consumer packaged goods (FMCG)
- How the drinks industry works: brands, bottlers and the route to marketLesson in Beverages: soft drinks, water, beer, wine and spirits
Related terms
- Weighted distributionThe share of total category sales made by the stores that stock a product.
- Rate of saleHow many units a product sells per store per week, in the stores that stock it.
- General tradeSmall independent shops, such as kiranas in India, reached through distributors.
- Penetration rateThe share of potential customers who already use the product.
- Like-for-like sales (LFL)Sales growth from stores open in both periods, leaving out new and closed stores.
- Sales per square metreStore sales divided by selling space: how productive the space is.
- Shrink (shrinkage)Inventory lost to theft, damage, errors or spoilage.
- MarkdownA lasting price cut to clear stock that is not selling.
Learn it in context
See Numeric distribution at work in a lesson from Customers and growth: the economics of marketing, with checks as you go.
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