New research shows that the retail industry is confident that category management will continue into the next decade as a core business strategy. 

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According to an IGD industry survey, 96% of respondents believe category management is here to stay. Over 70% of retailers and 76% of suppliers were very satisfied or satisfied with category management as a way to do business. The survey covers practitioners of category management in the food and grocery industry, and the results are compared with results from 1996 and 1999 to analyse how the process is evolving.


The original process, which many respondents (45%) viewed as being too time-consuming and complex, is being refined and organisations have developed their own templates or adopted more streamlined ones. Category management is becoming more of an accepted day to day activity, with guiding principles rather than traditional processes providing the future direction. 


Many organisations have now incorporated it into their company structures, with responsibility moving away from areas such as sales or national account managers to lie predominantly within a specialist function – in 2001 34% had moved category management to a specialist function compared with 17% in 1999. 


However, issues remain.  An overwhelming majority (84%) view implementation as the lynch pin to category management’s success, and involving store staff in the process is key. Many practitioners felt that this element currently limits project success. 

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Emma Aujla, Senior Business Analyst Supply Chain at IGD, commented: “Category management will continue to evolve in order to match the requirements of its practitioners and adapt to new methods of working and trading. Respondents to our survey acknowledge category management’s move into everyday business. As it evolves we may see a shift away from the category management label, however, our respondents remain confident that, as a principle, category management is here to stay.”