Supermarket Strategies

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Shelf Layout
The placement of items on store shelves is
not haphazard. Here, the experts explain
what’s up, what’s down, and what’s in the
“bull’s-eye” — and why.
(http://www.realsimple.com)
Top Zone
What’s There: Smaller brands, regional
brands, gourmet brands.
Why: The items here give “tone and texture”
to the shelf layout, These smaller brands
usually don’t have the budgets to pay for more favourable placement.
Shopping Tip: The specialty items found on the top shelf are generally chosen by local
store managers, not determined by the supermarket’s central headquarters.
"Bull's-Eye Zone"
What’s There: Best sellers and other leading brands.
Why: “Brands that sell best are always in what’s called the ‘bull’s-eye zone,’ front and
centre, right in your sight line. It’s the best placement, and the manufacturers have to
pay (the supermarket chain) for it,” says Craig Childress, director of prototype design
research at Envirosell. Mike Tesler, instructor of retailing at Bentley College, adds:
“There’s no advantage for the supermarket to show you the lowest-priced item in the
most effective spot. So here you tend to see higher-priced items or items with the
highest markup.” Secondary brands hoping to benefit from being shelved next to the
leaders also pay for placement in the bull’s-eye.
Shopping Tip: Look below the bull’s-eye to find similar products for a lot less, says
Childress.
BTEC First Retail IS 3.3
1
Kid's-Eye Level
What’s There: Products with kid appeal.
Why: “Kids can react and reach out to a product,” says Tesler.
Shopping Tip: Leave the children at home, if possible. Otherwise “you are bound to spend
more money,” Liebmann says — 10 to 40 percent more, according to industry studies. “If
kids are with you, give them something right up front — a balloon, a lollipop, juice, some
fruit, a kid-size shopping cart — to help keep them happy and calm and to prevent them
from putting things in your basket.”
Bottom
What’s There: Store and private-label brands; oversize and bulk items.
Why: “Store brands go on shelves four and five because people who buy store brands will
always hunt for them,” says Childress.
Shopping Tip: “Store brands are usually close to the market leader in quality yet less
costly,” says Liebmann. Underhill adds: “The same manufacturer that makes the branded
product often manufactures the house brand. It may be for all practical purposes the
same product in a different package.”
http://www.realsimple.com
BTEC First Retail IS 3.3
2
THE GROCERY STORE OF THE FUTURE
http://www.insightreport.co.uk/reports/report35/desc.html
Grocery shopping is now less planned and more impulsive. Weekly or fortnightly trips are less common
and shorter top-up visits more frequent. What are the implicatio ns of this for retailers and
suppliers? What will the future store look like? Grocery shopping is now less planned and more
impulsive. Weekly or fortnightly trips are less common and shorter top -up visits more frequent. But
research shows that overall, shoppers are actually spending more time shopping. What are the
implications of this for retailers and suppliers? How are retailers and suppliers sharing their
expertise?
Much shopper research has been done to identify specific shopper groups and missions. M uch of this
new, detailed work has been done by manufacturers re -defining category decision trees and cross
category purchasing dynamics. Simple definitions of staple versus impulse, expandable versus non expandable are too simplistic. Our report shows how leading suppliers now divide categories.
“If you lay out the shelving in a way that matches the logic of the way the category is shopped, they
then move on and notice more things…. we’ve done the research and the prize is at least a 20% sales
increase” (Customer Marketing Director, Supplier)
Retailers are redesigning stores to match shopper missions to layout. Because shoppers are using less
lists, store environment and signage needs to prompt the shopper and offer solutions. Use of “beacon
brands”, and “vertical blocking” exploiting consumer cues with “colour and shape” will develop further.
Increasingly, point of sale, is recognised as a key advertising medium. Retailers and suppliers are
communicating with shoppers, using off shelf displays, sampling, in-store TV and POP plasma screens.
Digital media has made it possible for advertising or other messages to take place on one screen,
leaving the aisle and shelf-edge uncluttered. Tesco may roll-out in-store TV to 300 stores. How will
this fit into overall changes in store layout?
“I don’t think that price in isolation is becoming less important, but I think price compared to time is
becoming less important” (Business Development Director, Major Multiple)
Research shows that shoppers are less price consc ious on small shopping missions and are less
motivated by promotions, with convenience and time -saving now being paramount. How are promotional
strategies likely to be adapted to fit in with these changes? Which promotions build not just
individual SKU volumes but also overall basket size? And can stores be made more “exciting”
environments in different ways?
BTEC First Retail IS 3.3
3
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