Optimising your store for impulse buys should be an essential part of your retail strategy. That’s because around 40% of shoppers will spend more than they planned, when the strategy is implemented effectively.
That striking observation came early on in Health Stores UK’s latest Shop Talk discussion, hosted this time by business coach Dave Christie – Dave’s first event since being appointed as the association’s Head of Business Development.
Starting with some scene-setting, Dave said: “We hear a lot at the moment about the cost-of-living crisis, shoppers being particularly price sensitive at the moment. And perhaps we sometimes presume customers aren’t interested in buying any additional products.
“But that doesn’t always translate in an obvious way when people are shopping. What we do find is that people are increasingly placing a value on quality. They value the efficacy of products. They want to be sure the product they’re buying actually works and delivers value. They are more inquisitive, they do their research. And they will be prepared to spend additional money, either to buy multiple products during one purchase, or buy products which they believe will deliver better results.
“So, a trend that we are seeing when it comes to food is one in which people are buying fewer items, but more premium and better quality products. And that’s been benefiting specialist retailers like farm shops quite a bit. In principle, that same thinking carries over into different categories in-store”.
Key areas covered in the session (which can be watched in full by Health Stores UK members at www.healthstores.uk) included:
Store layout: Impulse buys are normally placed in and around the checkout – typically on gondolas, end of aisles – or, potentially, clip strips as you walk around a different part of the store. Impulse buy product placement is almost always at eye-level at the till area.
Till-point encounter: The till counter is an area where you know the customer will be stopping – either to pay or chat with your staff, or in a queue. At till-point you have an opportunity to focus their attention on something different, something additional. It allows you you ask the question, ‘have you seen these, they’ve just come in and they’re creating a lot of interest’.
Cross-merchandising: Think about pairing complementary products (I came in for this, but maybe I need this too).
“At this time of year an eye-catching sign announcing ‘makes a great secret Santa gift’ might provide just enough nudge to secure a non-planned purchase”
Hotspots for impulse buys: Identify high-traffic areas and set up enticing displays with attention grabbing signage. At this time of year an eye-catching sign announcing ‘makes a great secret Santa gift’ might provide just enough nudge to secure a non-planned purchase.
Analyse your data: Identify which items perform best in impulse buy areas and adjust the product mix accordingly.
Staff picks drive up sales: Customers love to hear about staff picks – team members’ personal favourite products. Position some of these to close to the till to drive up sales.
- Health Store UK members can watch all Shop Talk episodes on demand at www.healthstores.uk (go to the Members’ Area and search for ‘videos’.
Dave Christie is founder of business mentoring specialist Take on Goliath
