Q1: Mastering the CPG Sales Cycle
Challenges, Opportunities, and the Value of Sales Support Partners.
The Consumer Packaged Goods (CPG) sales cycle is a continuous, year-round operation, but its rhythm is acutely defined by the first quarter of the year. Far from a slow start, Q1 is a critical inflection point that sets the trajectory for the rest of the financial year. It is a period of consumer introspection driven by New Year’s Resolutions and a significant retail planogram reset.
This blog analyses the unique Q1 environment, integrating current consumer trends and sales data, highlights strategic opportunities, and demonstrates how specialised field execution and logistics partners, such as Acosta Europe, are essential for driving execution excellence and ensuring a positive Return on Investment (ROI).
Challenges
Looking ahead to 2026, CPGs and retailers are expected to grapple with persistent inflation, ongoing supply chain volatility, rapid digital disruption, and evolving consumer expectations—making resilience and innovation critical for growth.
Demand Volatility & Financial Fatigue
Following the peak-season surge, consumers tighten spending. Sector dips include: Fashion, alcohol, and luxury dining due to financial fatigue and resolution-driven restraint.
Retailer Inventory Corrections
Retailers aggressively destock after the holidays, reducing large displays. This is exacerbated by high Christmas returns volumes, which strain logistics and impact early-year profitability. Mitigation tactics like improved reverse logistics become essential.
Execution Gaps
Q1 is the period for critical retail planogram and seasonal fixture resets. Poor on-shelf availability and missed merchandising opportunities during these changes cost sales volume.
Opportunities
Q1 is the time to activate new growth engines aligned with major cultural shifts:
Wellness Surge
Dry January & Health Focus
The start of the year sees a significant cultural shift toward mindful drinking and wellbeing. This is the prime time to launch wellness-themed bundles, promote whole foods, hydration, and seasonal produce, and position skincare and self-care products to align with consumer “reset” routines.
Sector Thrives
Grocery
(especially health-focused)
Fitness & Supplements
Non-Alcoholic Drinks
Dry January
29%
of UK adults went alcohol-free in January 2025
82.35%
increase participation in 2025 compared to 2024
Dry January Motivation
Retail Footfall Rebound & E-commerce Strategy
While retailers face a lull in engagement and sales post-December, the physical stores still see life.
Retail Footfall
6.6%
increase in retail footfall during January 2025, with shopping centres up
7.4%
increase participation in 2025 compared to 2024
Convert Financial Fatigue into Purchases
Promotions
Wellness Bundles
Loyalty Programs
Multichannel Experience
Successfully linking the digital and physical experience is the engine for sustained growth.
Brands with a strong omnichannel strategy report a 10% Year-over-Year increase in annual revenue, compared to only 3% for those with weaker execution.
Q1 performance is a test of a brand’s ability to ensure consistent product availability across all touchpoints, from e-commerce fulfilment to shelf health.
Seasonal Lift
Valentine’s Day (Mid-Q1)
The focus shifts dramatically in February, offering a mid-quarter injection of spending.
UK Valentine’s Day
7.1% YoY
increase in spending reported in 2025
£102.40
average per shopper
Opportunities
Gifting
Dine-in Deals
Themed Displays
Emerging Trends
“Galentine’s” and “Palentine’s” broaden the appeal, driving retail growth (especially online)
+6.4% WoW
in February 2025
The Value Of Sales Support Partners
How Acosta Europe drives ROI
Merchandising and Rapid Seasonal Pivot
Q1 demands two major, fast execution pivots: the January Reset and the Valentine’s Day Lift.
Value Add
- Ensuring planogram compliance, quickly establishing shelf positions for the new core assortment seasonal NPIs.
- Scalable, agile workforce execute the rapid shift of seasonal demands: setting up themed displays, promotions, and fixtures, with speed and precision.
ROI Impact
- Flexibility to launch Q1-Specific Campaigns and pivot to gifting earlier than competitors.
- Accelerated time-to-shelf and guaranteed execution during the footfall rebound period maximises the return on seasonal trade spend and directly improves sales lift for all categories.
Logistics, Returns, and Inventory Agility
The strain of Christmas returns and the need to service the wellness surge requires advanced logistical support.
Value Add
- Integrated warehousing, logistics, and in-store stock replenishment – critical in managing the operational strain of high returns spike in January.
- Support the streamlined returns process and assist with inventory agility by ensuring the new Q1 stock moves seamlessly from the back room to the shelf.
ROI Impact
- Minimised time products spend out-of-stock (whether due to being in the back room or stuck in the returns process).
- This agility supports the strategy to resell returned items quickly and ensures +99% OSA for key products that thrive in January.
Integrated Fulfilment: Retail & E-Commerce
The rise of multichannel retail demand advanced fulfilment solutions that are fast, scalable, and integrated.
Value Add
- Integration with any online platform (Amazon, eBay, TikTok Shop) for real-time order processing and inventory visibility—critical for meeting Q1’s surge in online shopping and avoiding stockouts during seasonal campaigns.
- Scalable processes and tailored picking, packing, and labelling—including special handling and customised packaging—protect brand integrity while ensuring agility for promotional pivots, helping brands and retailers maintain loyalty and competitive positioning during peak Q1 periods.
ROI Impact
- Accelerated delivery and accurate order processing drive higher customer retention and repeat purchases while reducing operational strain during Q1 surges.
- Integrated systems minimise errors and delays, lowering cost per order and enabling rapid fulfilment of seasonal and promotional campaigns to maximise early-year sales lift.
Data, Insight, and Commercial Reach
In a quarter defined by rapid consumer shifts (from Dry January to Valentine’s Day), real-time feedback is crucial for optimisation.
Value Add
- Collection of data on competitor pricing, promotional compliance, and stock levels using proprietary technology.
- Insights on display layouts and competitor promotions – this immediate insight supports a data-driven Revenue Growth Management (RGM) strategy.
ROI Impact
- Allowing brands to optimise in-flight, adjusting promotions or inventory delivery to maximise the sales during the footfall rebound.
- Strategic goal to incentivise repeat business by ensuring promotions or bundled offers are executed flawlessly at the point of sale.
Let’s discuss how we can
maximise your sales and ROI
Sources: Bain & Company. (2025). Consumer Products Report 2025: Reclaiming Relevance in the Gen AI Era ; British Retail Consortium (BRC) and Sensormatic IQ. (2025). Bargain hunting Brits boost shopper traffic (BRC-Sensormatic Footfall Monitor, January 2025) ; EY. (2025). How to balance the CPG, retail and consumer relationship ; Forbes. (2025). Empowering CPG Marketers To Drive Results In A Competitive Landscape ; PwC. (2025). CPG companies: 6 strategies for long-term success ; Retail Times. (2025). Valentine’s Day demand matches 2024, while growing Galentine’s and Palentine’s trends helps e-commerce revenues rise, study shows ; SW Londoner / Alcohol Change UK. (2025). Dry January 2025: A reflection and changing perceptions
