The Value of Impulse
March 30, 2015
We’ve all been there – in the store with what you came for in hand, ready to check-out and waiting in line. Ever so conveniently you spot an enticing looking chocolate bar that’ll hold you over until your next meal, a lip balm because you let yours melt in the dryer, and a magazine for the hour long bus ride. It’s the beauty of the impulse buy – reminding shoppers what they forgot they ‘needed’ and a final opportunity for retailers to fulfill them.
While 1% of all space in the store is dedicated to front-end merchandising, it equates to 2% of total store sales, and 4% of profit (Turcsik, 2014). If done effectively, retailers can really capitalize on this final opportunity before the shopper leaves their store. Consumers don’t mind either – “shoppers are looking for distractions while they are in the checkout line. Nearly two-thirds of consumers say they like to read magazines while they are checking out and 84% say that looking at products in the checkout gives them something to do. More importantly, 44% of shoppers will buy products on impulse while inline.” (Mendelson, 2014)
The proper mix of products should include candy, gum, magazines and beverages which represent 83% of front end sales, and an assortment of general merchandise items. Batteries are a must at the check-out as 60% of battery sales in store can be attributed to the front-end battery display (Grocery Headquarters, 2010).
While the eye-level items often get the most attention, signage can help draw the eye down and around to other areas of the shelf. Dana offers shelf talkers equipped with a blinking flashing LED light to give more visibility to these areas. This is an approach that is subtle yet effective, as 59% of shoppers said they did not consider purchasing items at the checkout because they either did not notice anything or did not think about it (Turcsik, 2014). This goes to show that beyond just offering the product you need the ideal rack, correct pitch of the shelves, product spacing, visibility and assortment.
Besides being a valuable area of real estate to generate sales, the front-end is also the last impression a retailer makes on a shopper. Call us today to learn how customized blinkers can work in your front end-space to capitalize on impulse purchases.
Grocery Headquarters. (2010, January). Tackling the front end. Grocery Headquarters. Retrieved from http://www.groceryheadquarters.com/2010/01/tackling_the_front_end/.
Mendelson, S. (2014, February). Power categories for the front end. Grocery Headquarters. Retrieved from http://www.groceryheadquarters.com/2014/02/power-categories-for-the-front-end/.
Turcsik, R. (2014, November). Up in front-end. Grocery Headquarters. Retrieved from http://www.groceryheadquarters.com/2014/11/up-in-front-end/.
Meet me in the Organic Meat Section
March 16, 2015
Healthy eating is not just a trend for conscious consumers. It has become a part of their lifestyle and affects their everyday purchasing decisions. For years, grocery stores and health food stores were entirely separate entities – there’s no need for grocery retailers to panic and flip their entire business to organics, but rather to evolve and adapt by expanding their offerings to capture the very lucrative conscious consumer. However, retailers cannot assume that by simply adding these organic foods to their offerings, sales will suddenly take off.
Let’s start in the meat section which accounts for 11% of total grocery sales (Fresh Food Handbook 2014-2015). According to Nielsen, from 2013-2014 organic meat dollar sales have grown substantially by 28% while conventional meat dollar sales show an increase of 2.5% (Grocery Headquarters).
A lot of us know words like organic, natural, free-range etc. that are associated with “good”… but what do they really mean? Price is one of the top barriers for organic product sales, but research shows customers do not mind paying a little more if they can see the value or benefits (Grocery Headquarters). This is why education is key, as many consumers are still in the phase of learning why organic may be the right choice for them.
This is where a clear and effective signage program is really vital for proper in-store execution. Dedicating a few feet and some specific sign holders and shelf talkers labeled ‘organic’ in a mellow green clearly indicating which products are organic is a step in the right direction. Let’s be honest, to the untrained eye organic versus conventional meat looks pretty much the same on the outside, but has all the benefits and goodness on the inside. While simply adding these unique shelf talkers and signs, it is perfect for those seeking out organically raised meat. Retailers should also make the effort to educate consumers who may just need some more information. A few key facts can be outlined using a shelf blade for consumers needing a bit more information before making a decision. Some key facts on shelf blades may include:
- No antibiotics, hormones, GMOs or pesticides are given to animals
- Livestock are given all organic feed.
- Disease is prevented with natural methods such as clean housing, rotational grazing, and a healthy diet.
- Livestock and milking cows must graze on pasture for at least four months a year, while chickens must have freedom of movement, fresh air, direct sunlight and access to the outside.
It’s up to retailers to see how they will identify their organic product from conventional, but the more shoppers see these unique tags and signs, the more they come to know what organic products are regularly carried, and begin to rely on the product selection.
Dana can makeover your shelf with customized shelf talkers, blades, wobblers, pre-printed sign holders, and other components to build an effective and uniquely tailored organic section for your very own retail outlet!
Diffenderfer, B. (2014, September). A meaty issue. Grocery Headquarters, 80(9), 12.
Kemp, G., Paul, M., Robinson, L., Segal, J., Segal R. (2015, February). Are Organic Foods Right For You? Retrieved from http://www.helpguide.org/articles/healthy-eating/organic-foods.h
Weinstein, S. (2014). Organic Beef. Fresh Food Handbook 2014-2015, 60.
August 1, 2014
Dana Industries is running a selfie contest from August 1- August 31. Visit any retail store and snap a selfie of yourself and a shelf talker on the shelf. Post to Instagram with hashtag #DanaShelfie, or email photo to email@example.com to enter. Weekly winners will receive a 2014 FIFA World Cup soccer ball. Grand Prize winner, which will be revealed on September 2, will win a trip for 2 to Las Vegas. Prize includes air fare and accommodations at The Venetian. Good luck!
Selfie Contest Coming Soon!
July 24, 2014
Shelvy™ & iQtalkers® at GlobalShop 2014
March 25, 2014
We LOVE Retail was the theme at this year’s GlobalShop show. Shelvy™ was once again the Official Greeter Mascot of GlobalShop 2014, and boy was he a major hit! We added a QR code to Shelvy™’s t-shirt this year to promote our new product and the analytics proved it to be a success. Booth 337 was always hoppin’ and the buzz around our iQtalkers® was spectacular. We met a lot of great people and can’t wait to do it again next year. See ya’ll next year in Vegas!