ThirdChannel Blog

How competitor analysis helps retailers & brands lead in crowded markets

Written by Brian Tervo, CEO | Dec 20, 2025

Every category leader started somewhere—usually by knowing something about the shelf that their competitors didn't.

Today's retail landscape is more crowded, more dynamic, and more competitive than ever. Brands aren't just fighting for shopper attention—they're fighting for visibility, relevance, and the right to win space in every store. With products constantly rotating, promotions shifting weekly, and customers comparing options in real time, knowing your own performance is no longer enough.

To lead a category, brands must understand the complete competitive picture: who else is on the shelf, how effectively they're executing, and what the customer sees in the moment of choice. Competitive analysis has evolved from a behind-the-scenes exercise into a core capability that shapes strategy, strengthens retailer relationships, and unlocks meaningful growth opportunities.

 

Competing in the most crowded era of retail

Walk into any retail store today, and you'll see it immediately: every category is overflowing. More brands. More SKUs. More promotions. More noise. Shelf space has never been harder to win and even harder to keep.

This is the new reality of modern retail. And it's reshaping how brands compete.

 

A market where every decision is made in an instant

Shopping behavior has changed dramatically. Customers stand in front of a shelf and compare products on their phones. In fact, 72% of North American adults use smartphones to research price comparisons while shopping in-store. They weigh price, features, ingredients, social proof, and brand reputation in seconds.

If competitors launch something new, run a deeper promotion, or secure better visibility, shoppers know—sometimes before brands do. And 54% of consumers say they will switch brands after seeing a better price via mobile search in-store.

In a world where choices are instantaneous and loyalty is fragile, the brands that understand what shoppers see in the moment of truth have the advantage.

 

Retailers are changing faster than ever

Retailers are adjusting their expectations just as rapidly. Planograms shift more frequently. Space is reallocated to faster-growing categories. Promotions are tested, tweaked, and measured with more rigor. Execution standards rise and fall based on location, daypart, staffing levels, or competing priorities.

The competitive pressure is intensifying from unexpected directions, too. 57% of retailers increased their private-label assortments, reducing branded shelf space, while more than 80% of US shoppers buy private-label products.

For brands, this means that yesterday's win on the shelf doesn't guarantee tomorrow's presence. To stay competitive, brands need to know who they're up against in each store, how those competitors are executing, where visibility gaps are emerging, which promotions or displays are driving shopper behavior, and how expectations differ across retailers and regions.

This is no longer a "nice-to-have." It's the foundation of retail strategy.

 

Competitive analysis is no longer optional

The brands leading their categories today aren't just measuring their own presence—they're analyzing the competitive environment around them. Competitive analysis has evolved from an occasional exercise into a constant operating rhythm that informs shelf strategy, pricing decisions, promotional planning, inventory allocation, retailer negotiations, and field execution priorities.

In the most crowded era of retail, understanding your competitors is as essential as understanding your own product.

 

Context is the new competitive advantage

Data tells you how your brand is performing. Competitive intelligence tells you why.
When two similar products share a shelf, the difference often comes down to who has better placement, who is fully in stock, who has more compelling signage, who is priced more competitively, who is executing the planogram correctly, and who is offering the promotion shoppers care about that week.

Your performance only matters in the context of what surrounds it. Brands that only track their own metrics miss half the story.

 

Why context matters more than raw performance

Consider this: 70% of purchase decisions are made in-store, making shelf conditions a primary driver of conversion. But shelf conditions aren't just about your brand—they're about the entire competitive set surrounding you.

Eye-level shelf placement increases sales by up to 35% compared to lower-shelf placement. But that advantage only exists if you have it and your competitors don't. If everyone's at eye level, the advantage disappears. If your competitor has it and you're on the bottom shelf, you're losing 35% of potential sales before a customer even reads your label.

The brands that win are the ones who understand what the customer sees, compares, and decides right there at the shelf.

 

The new retail playbook: learn faster than your competitors

Today's retail leaders share one trait: they learn faster.

They have visibility not only into their own retail execution but into the full category—what's changing, what's emerging, and what's working. They use store-level insights to make smarter decisions, adapt quickly, and build credibility with retail partners who expect brands to bring category expertise to the table.

Competitive analysis unlocks more accurate forecasts, better promotions, stronger merchandising strategies, more confident retailer conversations, and faster response to market shifts.

In a crowded, fast-moving environment, speed of insight becomes the ultimate differentiator.

 

Winning shelf space starts with understanding the whole shelf

Shelf space is a battle. Velocity is a race. Visibility is earned daily.

But the brands that rise above the noise aren't simply more innovative—they're more informed. They understand their share of shelf relative to competitors, how competitors execute across different retailers, where they can outperform the category, how to position their products to win shopper attention, and which opportunities retailers care about most.

In the most competitive era of brick-and-mortar, context is strategy. The brands that see the whole picture are the ones positioned to lead it.

 

Why competitor intelligence is now a strategic advantage

Success in today's retail environment isn't just about having a fantastic product—it's about having a clear, real-time understanding of the entire category. Competitive intelligence has become one of the most important strategic tools for brands that want to gain visibility, increase velocity, and deepen relationships with retailers.

 

Real-time market dynamics demand faster insight

Retail is now one of the most fluid and unpredictable ecosystems in business. Products rotate faster than ever. Demand can spike or stall overnight. Promotions shift week to week, and competitors experiment constantly with new pricing strategies, displays, and packaging.

Brands can no longer rely on quarterly reports or delayed store feedback. They need a continuous pulse on the market—a view of what's happening right now, in every store, across every region.

Competitor intelligence offers that live context: when a competitor launches a new SKU, which promotions are driving lift, where visibility gaps are emerging, how pricing fluctuates across retailers, and when a competitor is out of stock or dominating a feature.

With access to what's happening on the shelf—not just their shelf—brands can adjust strategy faster and maintain a clear edge.

 

Retailers expect category intelligence, not category guessing

Today's retail buyers manage more brands, SKUs, promotions, and vendor conversations than ever. What they don't have is time.

This shift has raised a new expectation: brands must bring category-level insights to the table.

It's no longer enough to report on your own sales or execution. Retailers want partners who understand the full competitive environment, can explain why category performance is shifting, bring evidence-backed recommendations, and speak in data, not assumptions.

The brands that meet these expectations gain credibility. Credibility leads to influence. Influence leads to better space, better promotions, and better collaboration.

When a brand walks into a buyer meeting with real competitive intelligence—"Here's what's happening in the category, here's what we're seeing on the shelf, and here's what we recommend"—they transform from vendor to strategic partner.

 

What smart competitive analysis includes today

Competitive analysis used to mean checking prices or walking a few aisles. Today, it's far more sophisticated—and far more essential. Modern competitive intelligence gives brands a multi-dimensional view of the entire category.

 

Shelf and merchandising intelligence

The shelf is the battleground where decisions happen. Thoughtful competitive analysis reveals what shoppers are truly seeing—and how each brand is being presented.

Key insights include share of shelf versus competitors, planogram and display compliance across brands, visibility of promotions and signage, and packaging impact and adjacency insights. This level of visibility helps brands pinpoint the exact shelf conditions influencing performance and how to outperform the category.

 

Price and promotion tracking

Price remains one of the strongest drivers of shopper behavior, but it's the context of pricing that matters most. Intelligent competitive analysis tracks real-time competitor pricing trends, promotion depth and frequency, and retailer-specific discounting patterns.

With this intelligence, brands can better time promotions, avoid unnecessary discounting, and compete more strategically.

 

Product performance and availability

In a category where shoppers can switch brands instantly, availability and velocity matter as much as marketing. The stakes are high: 1 in 3 shoppers will switch brands permanently after encountering two stockouts of the same item, and out-of-stocks cost retailers $82 billion annually in missed sales in North America.

Competitive intelligence provides visibility into competitor stockouts relative to your stockouts, SKU, and category velocity, and early indicators of winning items. This data helps brands anticipate demand, adjust supply chain decisions, and win incremental sales in moments competitors can't.

 

Brand experience and execution quality

Retail is no longer just about products—it's about experience. Smart competitive analysis measures demo and associate influence, in-store experience ratings, and service consistency versus competitors. These qualitative insights help brands strengthen their presence and ensure consistent execution across locations.

 

Turning competitor insights into action

Competitive analysis is only powerful when it leads to better decisions. The brands that outperform their categories aren't just collecting data—they're activating it. They use competitive insights to refine in-store strategy, strengthen relationships with retailers, optimize pricing, and craft a brand story that stands out on the shelf.

 

Strengthen your in-store strategy

The most successful retail teams use competitive intelligence to guide execution—not guesswork. With a clear picture of what competitors are doing across stores, brands can focus on the actions that truly move the needle.

  • Prioritize and scale top-performing displays by identifying which display types and placements drive the highest conversions

  • Strengthen adjacency negotiations by showing how placement changes improve overall category performance

  • Optimize merchandising to outperform comparable SKUs by adjusting facings, shelf height, and visual hierarchy based on proven winners

When brands align their in-store strategy with the real competitive context, they execute with precision rather than intuition. As we explored in our article on why mobile merchandising solutions are essential for modern retail success, the ability to capture and act on real-time store conditions separates category leaders from followers.

 

Enhance retailer relationships

Retailers are overloaded with data—but short on time. When a brand brings category-level insights that retailers don't have the resources to gather themselves, they instantly become a more valuable partner.

  • Secure additional facings by showing how increased space drives growth for both the brand and the overall category

  • Unlock smarter promotional opportunities by identifying when competitors are promoting, how aggressively, and where white space exists

  • Make a compelling case for exclusive placements like endcaps, features, or premium positioning using data-backed evidence

  • Launch test-and-learn pilots with confidence by proposing new displays, assortment strategies, or in-store experiences supported by real insights

Competitive insights give brands the credibility to influence retailer decisions and the confidence to ask for more.

 

Optimize pricing and promotions

Promotions and pricing decisions are often the quickest levers to pull—but also the easiest to get wrong. Competitive analysis ensures brands invest where it counts and avoid unnecessary discounting.

  • Identify pricing gaps that actually influence shopper behavior and separate meaningful differences from noise
  • Analyze competitor promotions to understand which offers drive real lift versus those that erode margin
  • Use historical and competitive data to predict which promotions will move the category and plan more profitable campaigns

In a crowded category, pricing and promotion strategies perform best when informed by real competitive context.

 

Differentiate your brand story

Competitive insight isn't just about operational decisions—it directly shapes how a brand positions itself in the market. When brands understand what competitors are saying, showing, and promising, they can sharpen their own message.

  • Uncover competitive gaps to clearly define what makes your brand unique, from ingredients and features to value, sustainability, design, and customer experience
  • Leverage competitive insights to sharpen messaging and optimize packaging and point-of-sale materials
  • Build and activate a compelling brand story that resonates at the shelf and clearly differentiates your products from competitors

When brands know the competitive narrative, they can build one that rises above it.

 

How technology enables smarter competitive analysis

The competitive landscape in retail moves too quickly for manual audits or anecdotal insights. Technology has become the engine that powers modern competitive analysis, making it faster, more accurate, and infinitely more actionable.

Modern competitive intelligence tools combine real-time store-level data collection through crowdsourced field reporting, computer vision from photos and videos, and automated shelf-read analytics. These capabilities replace guesswork with clarity—transforming the once-static category snapshot into a live, dynamic feed.

Technology also enables predictive insights that help brands forecast competitor movements, identify execution weaknesses, and surface category opportunities early. With predictive insights, brands move from reacting to competition to navigating ahead of it.

Most importantly, technology simplifies complex competitive intelligence into actionable dashboards that guide decision-making at every level—providing on-shelf insights summarized for buyers, store-specific recommendations for field teams, and category benchmarks for more informed negotiations.

These dashboards transform competitive data into practical instructions, helping brands execute faster, prove value to retailers, and scale consistent action across every store.

 

Compete smarter, not louder

As retail continues to accelerate, the gap between leaders and followers widens. The winners won't be the ones with the biggest budgets or the most aggressive promotions. They'll be the brands that deeply understand the competitive landscape and act on it with precision.

Competitive analysis isn't about reacting to competitors—it's about anticipating the category. It's the shift from guessing to knowing, from following to leading.
The brands that win aren't simply better—they're better informed. Competitive analysis gives retailers and brands the clarity to understand what's happening on the shelf, why it's happening, and where the opportunities truly lie. It transforms raw competition into a roadmap for smarter execution, sharper differentiation, and stronger retailer partnerships.

With real-time visibility into how the category is moving, brands can anticipate trends rather than react to them, optimize their presence with precision, and influence retail decisions with data buyers actually value. Competitive insight isn't just a defensive tactic—it's a growth engine.

In the most crowded era of retail, context is strategy. The brands that see the whole picture—not just their own performance, but the competitive environment surrounding it are the ones positioned to lead their categories.

The path to category leadership starts with seeing the whole landscape. For brands ready to elevate their retail strategy and turn crowded markets into clear advantages, competitive intelligence is the edge that makes the difference.

Ready to gain the competitive visibility that drives category leadership? Schedule a demo to see how ThirdChannel delivers the real-time competitive insights your team needs to win at shelf.