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AOP BlogCategory ManagementPIQ Series

Buyer Power Score – Retail Store Fixtures

By December 17, 2021No Comments

The AOP Buyer Power Score is a new content offering created in partnership with ProcurementIQ that rates the balance of power between buyers and sellers for a particular spend category

Today we are reviewing retail store fixtures.

The Numbers

The Buyer Power Score for retail store fixtures is -0.1 on a scale of -5 to 5, with -5 signifying low buyer power and 5 meaning high buyer power. The more power a buyer has the greater leverage they have to get lower prices and better contract terms.

This Buyer Power Score suggests that although the category is close to being in a neutral position, a small advantage goes to the suppliers. Many of the retailers competing with ecommerce for consumer dollars are turning to store fixtures as a way of improving the customer experience and bringing shoppers into their stores. It is important to note, especially given the labor shortages observed across the board, that installation services are not included in this Buyer Power Score. 

How to Use this Information

The current supplier advantage is likely due to recent fluctuations in price for the lumber used to build the fixtures as well as difficulty getting imported fixtures through congested ports on schedule. This drives up costs through input materials as well as product shortages. With the cost of lumber being expected to fall, and hopes that port congestion will ease over time, ProcurementIQ recommends that buyers wait until 2022, when market conditions are more favorable to a competitive negotiation.

Dig Deeper

We have partnered with ProcurementIQ to dig into their treasure trove of over 1,000 indirect category intelligence reports, with new insights every Friday.  To dig deeper into the retail store fixtures category, click here.

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