Ask the Expert
"I like to try new products in my shop and often merchandise them on the counter. But i don’t know how long to promote them for. I also have difficulty deciding where the best place to display promotions is within the main fixture, and which products to take off in order to do this. What advice do you have?"
NPD is hugely important to the independent sector as it drives excitement and trial for shoppers - many NPD launches end the first year with a higher than average value share of the category so its well worth stocking them. All types of NPD are important to soft drinks, with new brands being very significant.
To help drive NPD sales, retailers should maintain availability and flag up new launches near the counter and at other impulse points in store. It is often most profitable to remove the worst selling line if space is needed for a new product. Using specific point of sale can also draw attention to NPD and encourage trial. In terms of deciding what to stock, high profile launches will be front of shoppers’ minds
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How can I form a better understanding of my customers needs in order to layout my store effectively and drive sales?
Store layout is vital to impulse shopping, but before you can select the best layout for your store you must first get to know your shoppers. Local stores have a real advantage over the multiples when it comes to understanding who visits. To ensure you make the most of your store layout, you should find out why shoppers visit, when, how often and what categories they wish to purchase.
In terms of store ayout, location of key impulse categories, which account for 75 per cent of store sales, is key. You can use popular destination purchases like milk and bread to ensure that customers walk around the store and see other categories such as soft drinks and confectionery; this should result in increased impulse sales.
The ease with which customers can shop, combined with clear signage, are essential for maximizing in-store spend. It takes shoppers on average 21 seconds from entering the store to make their first interaction with a category. A simple store layout that communicates where key categories are located will help customers navigate the store more easily and encourage them to come back to the store.
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