US research firm Dechert-Hampe & Company recently completed a study of front-end performance at more than 300 stores in the grocery sector. Magazines, confectionary and beverages, made up the “power” group of top performers at checkout. Click here for a summary.
While one might expect this result from a study funded by Mars, Coca-Cola and Time-Warner, the results are interesting and useful to newsagents. They reinforce the importance supermarkets place on national brands to shoppers as well as the value of focus on the front of the shop.
The summary of the report offers good advice:
While the study was conducted in grocery stores, it is believed that most of the key findings apply to other types of store outlets as well. For example, the concept that consumers re most likely to buy products at the checkout that ave high household penetration, are purchased frequently, and are impulse driven, applies equally to any retail outlet regardless of format.
Newsagents tend to be less focused on national brands. While there are favourites, it is not uncommon to see three or four brands of essentially the same product in a newsagency. One is the hero of the segment and the others are there probably because they are represented by good sales people.
We also pay too little attention to our counters and the front of the shop. If this first few metres is so important, why do we let it fill with clutter which will push more people away than attract them? Why do we confuse our customers with counter offers rather than focus on what will sell easily?
The stat in the study which is most compelling is that on a typical day, 18% of shoppers make a purchase from the counter. This is a stat we should gather in our newsagencies and seek to improve through better counter management and operation. I know that in my own situation we are nowhere near 18%.