2025 is already shaping up to be another challenging year for Retail. Two transformative recycling initiatives are set to reshape the retail landscape: Extended Producer Responsibility (EPR) and the new Simpler Recycling workplace requirements.
Marks & Spencer estimates increased costs around £40 million for these new sustainability taxes alone, and that’s before factoring in rising National Insurance contributions from April. This is all shaping up to an additional £100 million bill which will be forcing Marks and Spencer, as well as other retailers, to make difficult decisions in terms of cutting expenditure.
But digging deeper, there are still a number of opportunities to bring spend under better control. One of those opportunities for retailers is to focus on their GNFR strategies (Goods Not for Retail) when it comes to spend. Mastering GNFR management can be key to reducing costs and improving efficiencies. And everyone knows that behind every successful retail business is a well-oiled back-of-house operation that keeps everything running smoothly
It all starts with visibility.
5 GNFR Strategies for greater visibility across your retail estate
Of course stock is the star of the show, but even with GNFR accounting for a significant chunk of the operational expenses it is rarely focused on or examined to the same degree as stock in terms of leveraging this spend and optimising stock management to its fullest.
There are huge opportunities for retailers to get smart with their GNFR strategies and gain many other benefits too such as progress towards sustainability goals.
Centralise and Consolidate
Many retailers fall into the trap of decentralising GNFR procurement with individual stores ordering separately because they fail to see the bigger picture. Individual purchases seem small, so there is no need to track a £5 purchase. This can be a mistake when this £5 purchase is made hundreds or thousands of times. Without this visibility, it can lead to fragmented spending, higher costs, over ordering and no real sense of stock levels. Consolidating GNFR suppliers delivers access to greater cost control across the board. This approach helps to build stronger supplier relationships as well as providing a less complicated and costly process for more accurate stock control.
Storage and Stockholding
Holding excess GNFR stock ties up valuable back of house space. Working with a supplier who offers a just in time solution with free stock holding gives an improved cashflow and overcomes the challenge of managing stock run rates and placing orders to meet MOQ’s or to avoid delivery charges.
Reduced frequency of ordering also helps to reduce carbon footprint too.
Smarter Ordering Systems
Using intelligent ordering platforms such as MyAcopia which are designed specifically for GNFR consumables procurement, means Retailers can finally gain a shared view of actual spend, spending patterns and stock levels. This helps to bring head office closer to each store – setting individual shop budgets, reviewing all proposed spend before it happens as well as recognising stock excess or stockouts along with the benefit of management reporting.
“It’s great to see what people are spending and to be able to limit the products they can buy.
It gives me greater control over what is purchased with no unnecessary stockpiling”
MyAcopia is an enabler to greater cost and stock control and continues to look to the future with automated ordering when supplies reach agreed predetermined levels, along with dynamic budgeting. This automation reduces the risk of stockouts while preventing over-ordering, a common challenge when using different systems.
Structured Storage Solutions
Physical organisation plays a crucial role in GNFR tracking. Implementing zone-based storage systems, where similar items are grouped together, makes stock checks more accurate. Clear labelling, dedicated storage areas and organised shelving systems help maintain order and make it easier to spot when supplies are running low. This is often easier said than done with most back of house storage pressed for space but definitely worth the effort.
Streamline Logistics and Deliveries
Shop stockrooms are often overwhelmed with multiple GNFR deliveries from various suppliers. Consolidating GNFR deliveries minimises disruptions, reduces transport emissions, and lowers handling costs. Fewer deliveries mean fewer interruptions for in-store and teams, allowing them to focus on customer service and core business operations.
The Future of Stock Management – Smarter GNFR, Stronger Retail
As technology continues to evolve, new opportunities for improving GNFR tracking emerge. Mobile apps, RFID systems, and dynamic budgeting are making it easier to maintain accurate inventory control and help to reduce manual effort.
By having the tools to measure and regularly review performance, organisations can maintain better control over their GNFR expenses. GNFR may not drive sales but this strategic approach to back of house management ultimately contributes to improved profitability, sustainability and business performance.