One of our bigger customers struggled with poor results and was trying to find positive changes. We were therefore commissioned to optimize 20 of their stores.
One of the primary things we noticed within the stores was clutter. there were far too many various items within the promotional spaces, the top gondolas were overcrowded, and therefore the Point of sale (POS) material were cluttered. We all know that well stocked displays are absolutely crucial for top sales. Although many adjacent products give the impression of a well-stocked display overall, the attention won’t perceive it that way. The attention will perceive it as cluttered.
We started cleaning up. Several of the products in promotional places and on end gondolas were items that the shop wanted to filter out and wasn’t of high interest to the purchasers. The shop manager’s thought was that these products would sell well if they got good exposure within the store. This is often wrong due to a bad product won’t sell well, regardless of where it’s placed.
We implemented changes in each of the 20 stores. The shops’ end gondolas were stacked with different products, often at inconsistent price levels. In each store, we decided to vary the products, both on the top gondolas and within the promotional places. On the top gondolas we placed up to a maximum of 4 products belonging to an equivalent category.
We ensured all products on display were well stocked, that the price points were within the same range, with dominant and explicit Point of Sale (POS) material. We also tested the level of extra sales to be gained from promotional places with only one well-stocked, well-placed product.
No doubt the changes had a positive impact. The answer was simple;
Placing the simplest products on the best spot, together with well-stocked displays and great Point of sale (POS) material resulted in total sales growth for the store. Sales of products from end gondolas and promotional places increased from 50% to 100%.
For some products, sales almost increased by 200%!
The changes also made it easier to work in the store. Now the store could order larger quantities of bestsellers with high profit margin and replenish the store directly from pallets. They no longer had to deal with tedious racking of single items. On top of that the store was easier for the customer to buy as well.
Often you don’t need to look further than your own store and your own organization to gain insight. If you systematize your improvement work and use your own data, there are infinite opportunities available at your hand to make significant growth. On all projects we’ve been working on, we managed to increase sales, some areas by as much as 200%.
Now it is your turn!
Over the past ten years, Link Retail has developed automated tools to make the work of optimizing space easier. Our wish is that using insight will increase awareness of the utilization of space and become a part of the everyday job within the chains to make growth.
Get in touch via our contact page if you would like to find out more about how you’ll increase sales through more thoughtful use of promotional space and end gondolas within the store.