In the retail world, product placement can have a significant impact on a store’s sales and profitability. Stores, where shoppers often make quick decisions, are based on what catches their attention.
This article looks at the psychology and strategy of effective product placement in stores. We will look at the impact on buying choices and present successful techniques to maximise sales. We will also share some real examples of successful product placement strategies.
Product placement impact on buying decisions
The placement of goods in a store has a big impact on what shoppers decide to buy. With the right approach, casual visitors can become paying customers.
The placement strategy has a direct impact on how shoppers move around the store, what they notice and ultimately what they buy. For example, research shows that products placed at eye level increase the likelihood of shoppers making a purchase.
In addition, products placed at the checkout line or at the end of aisles can attract shoppers’ attention and encourage impulse purchases. Tesco and Walmart are two supermarkets that have successfully increased sales using this strategy.
Eye-level shelving for high-profit items
When high-margin products are positioned strategically at eye level, sales and visibility can be greatly increased. Because they immediately draw a customer’s attention, eye-level shelves are frequently referred to as the “bull’s eye area.” Stores raise the possibility that customers will view and purchase high-margin items by positioning them here.
For example, more expensive, branded snacks can be displayed at eye level, while cheaper or generic products can be placed higher or lower on the shelves.
The use of end caps for promotions
Because they are so conspicuous, the end displays—the showcases at the ends of the aisles—are the ideal real estate in any retail establishment. When used for seasonal or promotional things, they can be quite successful.
In what ways do end displays boost revenue? End displays are great for showcasing new or seasonal products or special deals because they are the first thing a buyer sees when they walk down an aisle. They can also be used to build themed displays that assemble related products in one place to entice shoppers to buy more.
A retailer might, for instance, have an end display with a summer theme that includes beach toys, water bottles, and sunscreen. This encourages clients to get everything they require for a beach day in one handy location.
Strategic positioning of impulse buys
Placing impulse goods near the checkout area is a long-standing retail strategy. Taking advantage of shoppers’ tendency to make last-minute purchases while waiting in line.
Small, inexpensive items such as sweets, chewing gum or magazines placed near the cash register can drive additional sales while customers are queuing. This strategy can be particularly effective in stores where customers can stop quickly to buy only a few items and are more likely to make impulse purchases. For example, 7-Eleven often places products at checkouts to take advantage of these last-minute purchasing decisions.
Case studies of successful product placements
Product placement techniques have helped a number of retailers boost revenue.
Let’s examine a few instances:
CVS Pharmacy: The pharmacy chain rearranged its product placement to increase sales of healthy foods by positioning them close to the cash register and at eye level.
Sheetz: This chain draws attention from beer fans and drives good sales in the category with its end-cap displays showcasing its extensive selection of specialty beers.
Conclusion
One of the most important aspects of retail merchandising is the skill of product placement. Stores may greatly impact consumers’ decisions and boost sales by employing strategic product placement tactics and an awareness of the psychology of shopping.
Case studies have demonstrated that these strategies, when used appropriately, may be very successful. But keep in mind that each store is distinct. What functions well in one store might not in another. You must always test and adjust in order to determine the most effective product placement tactics for your store.
Product placement is more than just stocking shelves. It’s a strategic component of your store’s success. By mastering this art, you can maximize your store’s profitability and provide a shopping experience that keeps customers coming back for more.
For more information on boosting sales in a convenience store, check out this article – Design a Selling-Orientated Convenience Store. And if your convenience store is somehow related to a supermarket, you might find this article helpful – How to Setup a Selling-Orientated Supermarket. Gain some knowledge and a deeper understanding of what it takes to set up a successful convenience store.