Shelf space is the prize — and the test

For most wellness and supplement brands, landing shelf space at a major retailer is the defining moment. It's validation that your product is good enough, your brand is strong enough, and the market wants what you're making. Whether it's Walgreens, Whole Foods, Boots, Target, or any of the national chains, a retail placement can transform a small brand into a household name.

But getting the call is only the beginning. Keeping the shelf space — and making it profitable — requires a level of operational, financial, and logistical readiness that many brands underestimate. The brands that succeed in retail are the ones that treat the placement as the start of a new phase of business, not the finish line.

What retailers actually look for

Before diving into the operational side, it's worth understanding what gets a buyer's attention in the first place. Retail buyers are drowning in pitches. Standing out means demonstrating more than a great product.

  • A proven sales story

    Retailers want evidence that consumers already want your product. Strong DTC sales, social media engagement, press coverage, and customer reviews all signal demand. If you can show that your product sells well where it's already available, you're making the buyer's decision easier.

  • A clear market gap

    Buyers think in terms of their category planogram — the visual layout of what sits on the shelf. They're looking for products that fill a gap their current range doesn't cover. If your product duplicates something they already stock, you need a compelling reason for the switch: better margins, stronger brand, or a demonstrably better product.

  • Margin and pricing that works

    Retailers operate on tight margins, and they need your wholesale price to leave room for their markup while remaining competitive at the shelf. You'll typically need to offer a wholesale price that's 40–60% of your recommended retail price, depending on the category and retailer. If your unit economics only work at DTC prices, retail may not be viable yet.

  • Compliance and documentation

    Retailers need to see that your product meets all relevant regulatory requirements — FDA compliance in the US, FSA or MHRA standards in the UK, correct labelling, allergen declarations, and often third-party lab testing. Having this documentation organised and ready signals professionalism and reduces risk for the buyer.

  • Operational reliability

    Can you actually deliver? Retailers need confidence that you can produce at the volumes they need, deliver on time, and maintain consistent quality. A brand that wins a placement but can't fulfil the first order does lasting damage to the relationship.

The operational checklist most brands miss

Assuming you've got the retailer interested, here's where the real preparation begins. This is the operational groundwork that separates brands that scale from brands that stumble.

Packaging and labelling. Retail-ready packaging is different from what works for DTC. You'll likely need shelf-ready display cases, specific barcode formats (UPC or EAN depending on market), retailer-specific labelling requirements, and packaging that can withstand distribution handling. Some retailers have detailed vendor compliance guides running to dozens of pages. Read them carefully — chargebacks for non-compliance are common and expensive.

Supply chain resilience. A single retailer placement might double or triple your production volume overnight. Can your manufacturer handle this? Do you have backup suppliers? What's your lead time, and does it account for the retailer's replenishment cycle? If your supply chain breaks under the strain of a successful retail launch, you'll lose the placement — and possibly the relationship.

Logistics and distribution. Many national retailers require delivery to a distribution centre, not individual stores. This means working with a third-party logistics provider (3PL) or having your own warehousing and distribution capability. Getting products from your manufacturer to the retailer's DC on time, in spec, and properly documented is a non-trivial operation.

EDI and systems integration. Larger retailers communicate via Electronic Data Interchange — automated systems for purchase orders, invoices, shipping notices, and more. If you're used to managing orders via email and spreadsheets, you'll need to invest in EDI capability or work with a partner who provides it. This is a common stumbling block for brands making the jump from DTC.

Insurance. Product liability insurance requirements increase significantly for retail. Most major retailers will require a minimum level of cover — often £2–5 million in the UK or $2–5 million in the US — as a condition of doing business. Get this in place early; it can take time to arrange and the cost needs to be in your financial model.

The financial reality of retail

This is where many brands' plans come unstuck. The financial dynamics of retail are fundamentally different from DTC, and the difference can be brutal if you're not prepared.

Payment terms

Major retailers typically pay on net 30, net 60, or net 90. Some are slower in practice. You could deliver product and not see payment for two to three months.

Supplier costs

Your manufacturer needs to buy raw materials, run production, and ship — all before the retailer receives the goods. Most suppliers require partial or full payment upfront.

Chargebacks

Retailers deduct fees for late deliveries, incorrect documentation, and packaging errors. These come off your payment automatically — and can be substantial in the early days.

Promotional costs

Many retailers expect brands to contribute to promotional activity — introductory pricing, gondola-end displays, seasonal campaigns — reducing your effective margin on early orders.

The brands that navigate this successfully are the ones that model the full financial picture before accepting a purchase order. They know their peak cash requirement, they've arranged financing to cover the gap, and they've built a margin buffer for the inevitable chargebacks and promotional costs.

How to keep the shelf space once you've won it

Getting on the shelf is an achievement. Staying on it is a business. Retailers regularly review their planograms and drop underperforming lines. Here's what keeps you there.

  • Sell-through is everything. The retailer is measuring how quickly your product moves off the shelf compared to the space it occupies. If sell-through is strong, you'll keep your placement and potentially expand it. If it's weak, you'll be delisted — sometimes within a single review cycle.
  • Invest in brand awareness. Don't assume the retailer will market your product for you. The brands that sell well in retail are the ones that drive their own consumer awareness through social media, PR, influencer partnerships, and in-store sampling. Retail placement amplifies your brand — but you need to give it something to amplify.
  • Maintain flawless operations. On-time delivery, correct documentation, responsive communication. Operational reliability is the single biggest factor in maintaining a retail relationship. Buyers deal with hundreds of suppliers. The ones who make their lives easy get preferential treatment.
  • Build the relationship. Retail is still a relationship business. Your buyer has targets to hit and problems to solve. If you can be a partner who helps them succeed — with data, with promotional ideas, with flexibility — you'll be the last brand they cut when they need to make space.
  • Plan for reorders. The first order is a test. What matters is what happens next. Have your production pipeline ready for reorders before you deliver the initial stock. If the product sells well and the retailer comes back, being able to fulfil quickly is a significant competitive advantage.

Where working capital fits in

Throughout all of this, one theme recurs: you need cash well before you receive cash. The gap between investment and return is the fundamental financial challenge of retail, and it's the reason many otherwise excellent brands struggle to scale beyond their first placement.

This is why trade finance has become an increasingly important tool for wellness brands entering retail. Unlike traditional lending, trade finance is designed specifically for this timing mismatch — bridging the gap between paying your supplier and collecting from your retailer, on a per-order basis, with costs that are transparent and tied to the specific transaction.

The smartest brands treat working capital as infrastructure, not an afterthought. They secure financing before they need it, build it into their margin calculations, and use it to say yes to opportunities that would otherwise be out of reach.

A practical readiness checklist

Before you accept that first retail purchase order, make sure you can answer yes to each of these:

Product readiness

  • Packaging is retail-compliant with correct barcodes and labelling
  • Shelf-ready display formats available
  • Lab tests and compliance documentation current and organised

Supply chain readiness

  • Manufacturer can deliver at retail volumes
  • Lead times modelled and contingency in place
  • Backup suppliers identified

Financial readiness

  • Full cash flow cycle modelled including chargebacks and promo costs
  • Financing in place to cover the working capital gap
  • Reorders can be funded before first payment arrives

Operational readiness

  • Logistics and distribution arranged
  • EDI capability in place or in progress
  • Product liability insurance secured

The opportunity is real

Retail remains one of the most powerful growth channels for wellness brands. The shelf space at a major retailer gives you visibility, credibility, and access to consumers that DTC alone can't match. The brands that win in retail are the ones that combine a great product with operational excellence and financial planning.

The transition from DTC to retail is a step change — but it's a step change that the best brands in the industry have all made successfully. With the right preparation and the right infrastructure behind you, it can be the beginning of your most significant growth phase yet.

Alethium helps wellness brands manage the financial demands of retail growth — from bridging payment timing gaps to building trusted supplier relationships. If you're preparing for or scaling in retail, book a demo and let's talk about how we can support your next phase of growth.

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