Are you bombarding customers with too many product choices?
The mindset of the more products, the better has been prevalent in retail circles for a long time, but this type of merchandising can leave customers wanting to get in and out of your store rather than wanting to linger a bit—and buy more.
“Clutter and space are always an issue,” said Scott Hein, travel store manager for Iowa 80 Truckstop in Walcott, Iowa, which bills itself as the world’s largest truck stop. “Even in our large store, we still have to be choosy about what products to bring in to avoid a cluttered space.”
From supermarkets to convenience stores, retailers are clearing the clutter as they rethink merchandising to better fit how consumers shop their stores. This means revamping not just the type and position of shelving units, but also how many items to stock and what promotional displays to incorporate.
Here are the top four merchandising trends in the convenience industry.
Inviting store layout. Retailers are investing in creating more appealing and customer-friendly store designs. “They have adopted open and inviting designs with wider aisles, well-organized product sections and prominent displays,” said Tim Young, customer business manager with Crossmark. “Clear signage, efficient checkout counters and designated areas for promotional displays have become standard to enhance the overall shopping experience.”
Iowa 80 created wide aisles to accommodate heavy traffic, especially during the May to November prime traveling season. “We want to keep our pathways as open as possible, so we’re very picky about adding temporary vendor displays or other merchandising units,” Hein said. “We always look at the broader view when considering changes to displays.”
“These visually appealing displays create a sense of urgency and encourage impulse purchases.”
Data-driven merchandising. The availability of advanced analytics and sales data has enabled c-stores to make more informed merchandising decisions. Having a data-driven approach helps c-stores improve inventory management, reduce waste and maximize profitability.
At Iowa 80, the 11 department managers review merchandise data on a daily as well as monthly basis. “Sometimes, when you’re looking to get your sales up, you think adding more options is the way to go,” Hein said. “But then you’re left with too much stuff, and it’s not shoppable for the consumer.” Instead, to keep inventory fresh, Iowa 80 analyzes the sales data on its nearly 60,000 SKUs to see which ones are selling and which are not.
Product placement. Retailers now place greater emphasis on optimizing the placement and visibility of products. “This involves strategic positioning of high-end items at eye level, near checkout counters or within a queuing design to ensure easy access and to capture consumer attention,” Young said.
Promotional displays. “Eye-catching displays near entrance areas, endcaps or designated promo zones highlight featured products, limited-time offers or bundled deals,” Young said. “These visually appealing displays create a sense of urgency and encourage impulse purchases.” He mentioned that one retailer is testing an endcap display that automatically changes product assortment based on dayparts.