The category role defines how the retailer wants its category to be perceived by its Customers in each store format, store size, or location. Depending on the store positioning, its size, its format, and even sometimes each location, each category can be focused more on sales volume, sales value, or margin rate. These groupings are called Roles. While the definition of roles can vary, it is generally accepted that there are 4 main roles:
- Destination: High sales value and High margin
- Traffic: High sales volume and Low margin
- Image: Medium sales value and Medium margin
- Service: Low sales and High margin
🧪 Example of Category Role
If you are the sole Retailer of an Imported Pasta Brand, your Customers will come to visit your stores for that particular brand therefore this Category will take a Destination Role.
Every category cannot be a Destination. Make sure you clearly understand what the current role played by your category is for a given store type, size, or location and where you want to drive it. It will be the backbone of the Fit between your business and your customers.