Wednesday, January 4, 2012

Structure Your Layout for Shopper Mission

A major reason for the success of the convenience store format was the placement of the milk toward the front of the store. The traditional supermarket required the shopper to walk all the way to the back of the store to reach the dairy case. Since purchasing milk is one of the most common reasons for a stop at the store, the supermarket layout meant longer trips through the aisles, producing higher probabilities of other merchandise purchases.
     But shoppers were willing to pay more for the convenience of a quick stop where the milk and other commonly purchased items were right up front.
     In what ways has the increased price sensitivity of consumers in these tight economic times changed recommendations for store layout? Consider the results of a study about consumer packaged goods conducted by market researchers SymphonyIRI Group. Their analysis of more than 8,000,000 shopping trips produced a typology of four primary missions. Here is my version of those four:
  • Quick trip: “I need it right now.” Between 1 and 5 items are typically purchased.
  • Fill-in: “It’s time for a routine replenishment of regularly-consumed items.” The typical purchase consists of between 5 and 15 items.
  • Stock-up: “I’ll shop in advance for items I’m likely to need during the next week or so.” At least 15 items are typically purchased.
  • Special purpose: “I’m buying for a party or other distinctive event.” Between 2 and 10 items are typically purchased.
     The economic downturn produced a relative decrease in stock-up trips and a relative increase in quick trips. These days, there are differences among store formats in what types of shopper missions are resulting in financial success:
  • At grocery, supercenter, and club stores, between 35% and 50% of sales come from stock-up shoppers and about 20% from fill-in shoppers. Therefore, the store layout should facilitate traveling through the aisles. At the same time, between 17% and 20% of sales are from quick-trip shoppers, so there are advantages to having a special section at the front of the store carrying the most commonly-purchased items.
  • At drug stores and dollar stores, less than 7% of sales revenues come from stock-up shoppers. The quick-trip shopper accounts for about half of sales revenues. If you intend shopper convenience to be a benefit of your store, lay out the merchandise and arrange the cash/wrap areas to facilitate getting in, finding what’s wanted, and getting back out.

For your profitability: Sell Well: What Really Moves Your Shoppers

Click below for more:
Show Off New CPGs on Store Shelves
Notice Where Your Shoppers Look as They Enter

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