Herb Sorensen, global scientific director at TNS Retail and Shopper takes a fresh look at the impact of exhibiting product on aisle end-caps compared with merchandising elsewhere in store.
End-caps are the powerhouses of any store, generating 20% of all store sales and featuring only 1% of the SKUs. The conventional wisdom is that products on end-caps sell more because they feature lower prices and reach a much higher number of shoppers than other locations.
Because retailers can’t duplicate the prime real estate of end-caps in the middle of the store, they rely on copious sales signs to drive sales. But there are more fundamental reasons why end-caps work, which retailers can use to help push the success of “mid-cap” centre-of-the-aisle displays.
Simpler selection
Shoppers value time and ease of shopping. Can I quickly get what I need, without the angst of selection?
End-caps work because you are not faced with 15 different kinds of tortilla chips. The retailer has selected their recommendation for your convenience, making shopping selection quicker and easier by reducing choice – in the same way that a good waiter will recommend an entrée.
The ‘active retailer’ makes recommendations and highlights one product from the hundreds of others – so retailers should help shoppers with mid-cap displays that also narrow the selection.
Visually distinct
End-caps also work because the product stands out from other products. There is a clear spatial separation from end-cap displays and adjoining merchandise, often by two metres across an aisle to an adjacent end-cap.
The shopper is not confused about where the offer begins and where it ends.
This “demarcation of the offer” is very important in terms of communicating with shoppers. Simply providing a wall of merchandise, even with a blizzard of labels, is no help.
Remember, time is always working against you. Shoppers do not want to be in your store! Help them to get what they need, and get them on their way.
How many mid-caps might it be reasonable to place in an aisle? Based on the average walking speed of shoppers, and the acceptable length of time required to make a serious offer, three per aisle is the optimum number.
Coming into the rear of the aisle (the most common shopper entry direction) retailers should place a mid-cap about three metres into the aisle, on the shopper’s left side.
Then place one another five to seven metres further towards the front, on the shoppers’ right side, and after another similar distance, a final one on the shopper’s left.
By simplifying the purchase decision with enticing, visually-distinct displays of a discreet product set, mid-caps can provide a powerful lift in the centre of your store.
