CategoryWins #11 : Breaking Silos in 2025

I worked as a Buyer at Sainsbury's & Tesco for over 10 years, before going on to specialise for the next 10 in Insight, Category Management & Growth Strategy.

This newsletter is here to share some of my experience and give practical insights & tips about how to use Category Management principles & thinking to unlock new growth for both Category & Brand, as well as (having been one myself) better engage Retail Buyers.

Sometimes the focus may be a key Category principle, other times we'll cover more real-life examples of how the principles are applied in practice, or a perspective on how Grocery Retailers & Buyers actually work - all with a view to helping you identify new ways to grow.

Breaking Silos: Strategies to Unite Teams & Accelerate Growth in 2025

In today’s grocery & durables markets, collaboration between Category Management, Sales & Marketing teams plays a critical role in unlocking growth & driving business success.

However, it doesn’t always work as it should.

Sometimes a lack of alignment between Category, Sales & Marketing teams can become a real barrier to success. Misalignment between these teams causes inefficiencies, missed opportunities, and stagnation – but it can change.

With an intentional & action-driven approach, businesses can transform silos into synergy & replace misalignment with a powerful driver of growth through the ‘Power of Three.’

This week’s newsletter explores why silos exist, the cost of misalignment & actionable strategies to foster better collaboration. ?As January marks the start of a new year, there’s no better time to reflect, reassess & find new approaches to improve performance.

The Dangers of Misaligned Teams

Imagine the Category team analysing past sales trends & identifying what looks like a key segment or price tier where growth can be accelerated, when Marketing eg due to a pending cost of goods increase have already made a strategic decision to focus elsewhere.?

Scenarios like this may sound like obvious pitfalls that can be avoided, but without integrated Teams & regular, open communication they are all too common.? Misalignment like this isn’t just frustrating - it’s costly. The disconnect wastes resources and leaves potential growth elsewhere untapped.

Ultimately a good Category Manager needs to push hard for focused briefs & open sharing of wider information to produce quality & targeted work, but Sales & Marketing also need to be prepared to listen & share.?

If this doesn’t happen, then without specific questions to answer, Category may default to routine reporting & analysis, mainly of past performance - without focusing enough on identifying & supporting the development of the growth opportunities where their input can produce the most value.

The bottom line: collaboration isn’t optional.

Businesses must bridge these gaps to avoid the inefficiencies and missed opportunities that stall growth.

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Why Silos Exist

Silos don’t form overnight - they emerge from organisational structures, long-standing habits and sometimes a clash of personality.? Businesses must first identify the root causes of division before taking corrective action. Common drivers can include:

• Lack of trust: Teams avoid sharing ideas, fearing criticism or loss of control.
• Conflicting objectives: Category may focus too exclusively on sales & market share, while Marketing may be driven more by profitability and Sales on Volume & Distribution growth.
• Time pressures: Tight deadlines can push teams to work independently rather than collaboratively.
• Organisational structures: Overly rigid roles & responsibilities may discourage cross-functional engagement
• Limited communication: A lack of both formal and informal discussions & information sharing can lead teams to default to isolated decision-making.

Recognising these barriers is the first step toward dismantling them. ?Businesses that fail to address silos risk embedding them further, making alignment even harder over time.

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The Costs of Misalignment

Misaligned teams pay a steep price as the consequences can ripple through the business, affecting efficiency, morale, and market performance:

• Missed or Delayed Growth Opportunities: Teams fail to identify and act on new market opportunities / trends due to a lack of shared insights - giving competitors an edge.
• Wasted Resources: Strategies developed in isolation lack critical input of all the key stakeholders who can properly pressure test at an early stage, avoiding inefficiencies & wasted effort later on.
• Reactive, Short-Term Decision-Making: Without integrated planning, teams rely too heavily on past performance and a culture of incrementality, failing to chart a clear & strategic path toward future growth.
• Eroded Morale: A lack of collaboration breeds frustration and reduces employee engagement.

Businesses that tolerate these inefficiencies risk stagnation while competitors move ahead. Addressing misalignment isn't optional - it’s essential for sustainable success.

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6 Actionable Strategies to Foster Collaboration

Breaking silos requires more than vague intentions. ?

Businesses need clear, actionable steps to drive alignment. ?Here’s 6 ways to get started:

1. Unify Leadership Accountability: Task senior leaders with visibly fostering collaboration. For instance, introduce cross-functional feedback loops where each team provides input on shared initiatives, and hold leadership accountable for addressing concerns swiftly.
2. Set Joint Goals and Metrics: Review & replace any siloed KPIs with shared objectives. For example, Category, Sales & Marketing teams should be aligned on combined goals like profitability and market growth, but also need clear accountability - achieved by breaking these goals into measurable deliverables for each team.
3. Establish a Structured Communication Cadence: Schedule regular cross-functional meetings to align priorities and share updates. Use these forums to expose and resolve potential conflicts early. ?Create clear agendas, designate roles, and set action items to ensure meetings are productive and drive results.
4. Implement Shared Tools and Dashboards: Use technology to create transparency. Invest in dashboards that display shared performance metrics and project progress. Provide training to ensure teams can access, understand, and apply this data effectively in decision-making.
5. Focus on Proactive Opportunities: Rebalance time spent by teams, with less analysing past performance and more co-creating future strategies.
6. Reward Collaboration with Tangible Benefits: Recognise joint successes publicly. Whether it’s a new product launch, a successful campaign, or achieving sales targets, reward collaboration through incentives, awards, or team shout-outs to reinforce its value.

Breaking down silos isn’t an overnight fix - it takes sustained effort, ongoing dialogue, and a willingness to really address underlying challenges.

However, by taking a consistent & sustained approach to implement the right strategy, businesses can foster much better alignment and step-change long-term growth potential.

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The Benefits of Better Integration

When Category, Sales & Marketing teams work together, the benefits can be transformative:

• Faster Market Responses: Aligned teams act more swiftly on emerging trends, maintaining a competitive edge.
• Smarter Resource Allocation: Collaboration reduces duplication & ensures energy is spent on high-impact initiatives.
• Enhanced Innovation: Cross-functional input fuels creative problem-solving and breakthrough ideas.
• Improved Morale: Teams that work collaboratively foster trust, engagement, and a high-energy work environment.

Better integration doesn’t just solve problems - it creates opportunities and is a powerful driver of competitive advantage.

Summary

The success of Category, Sales & Marketing (the Power of Three) hinges on their ability to collaborate effectively. Misalignment wastes resources and stifles growth, but with actionable strategies, businesses can break down silos, foster trust, and unlock the full potential of their teams.

January offers the perfect opportunity to reset, recalibrate, and rebuild.

By applying these steps, businesses can create a stronger foundation for innovation, efficiency, and market leadership in the year ahead. ?Let 2025 be the year collaboration drives your success!

Other Post this week : "Can WH Smith’s High Street Stores Thrive Again?"

The Travel division is soaring, but WH Smith’s High Street stores need a long term plan for growth. This article explores potential strategies - loyalty programs, category focus, community hubs, and digital integration - that could transform its High Street proposition and reignite relevance.... [click below for the link]

https://www.dhirubhai.net/posts/simontjdunn_categorymanagement-retailstrategy-whsmith-ugcPost-7283489119052152834-Xmzn?utm_source=share&utm_medium=member_desktop

At Optima Retail we are Category Management experts so if you need any advice on what may be right for your brand, or would just like a quick chat to explore other options for how to address a particular challenge please do get in touch as we’d love to help.

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