Store layouts & merchandising to grow convenience sales

Transcription

1 Store layouts & merchandising to grow convenience sales Presented By Hugh Large The Convenience Guru

2 Every morning, in Africa, a gazelle awakens knowing that it must outrun the fastest lion if it wants to stay alive. Every morning a lion wakes up knowing it must run faster than the slowest gazelle or it will starve to death The Moral. It makes no difference whether you are a lion or a gazelle: When the sun comes up, if you want to survive you had better be prepared to haul ass!

3 My background 50 years in retailing. 36 years in convenience retailing. 10 years as a senior executive. 26 years as a consultant. Involved in merchandising projects a year for independents. Assessments of existing stores. Store layouts, both existing & new stores. Fixturing & equipment. Merchandise assortments. Merchandising programs.

4 Today s Agenda Your consumers: Who are they, what s important? How do they shop? Your Store Layout: How can it help to grow your business? The fixtures & equipment: Why are they so important? Merchandise display / presentation: Where do things go and why? Your store s image: Does it help or hurt your business? Final thoughts. Questions.

5 Why should this topic be important to you? New chain competitors with stores that are modern, clean, more attractive, and with fast food offers. Your store may be old / tired / stale and is not an attractive or inviting place to shop. Your long-time customers are finding new places to do their convenience shopping overall sales in traditional categories, are probably declining. Your assortments and category space allocations may be out of balance, and you probably have dead stock taking up space.

6 Your consumers Who are they? They are getting older. They are time-pressured. They are more concerned about their health. Fewer smoke. They have higher expectations. They are more ethnically diverse. They are more connected and informed.

7 The consumers What s important to them? 60% -70% shop in your store because it s close to home or close to work. They look to you for the newest convenience products. 98% believe you are more expensive, but they will trade that for convenience. They expect you to always be in-stock of their favourite brands and sizes. They will use you for fill-in shopping.

8 The consumers How do they shop? They are in a hurry 85% will spend less than 5 minutes in your store. Purchase decisions made in 10 seconds. 41% of purchases fill an immediate need. 75% - 80% of confectionery and snack purchases are made on impulse. Most will not purchase convenience items when they buy gas. They want one-stop shopping. Almost 30% will leave the store without purchasing if they cannot find the specific item they want.

9 The Key Question What do you need to do to improve your store layout and your merchandising, so you can better appeal to your existing and potential customers and generate more sales?

10 The Store Layout - What are you trying to achieve? Highlight the key product and service components of your offer that generate traffic (Cash Desk, Beverages, Food). Make it easy for customers to quickly see what you have to offer, to find what they want, to buy, and to get on their way. Allow traffic to flow easily through the store to effectively use all of the space you are paying for. Display impulse-oriented products in high traffic areas to drive sales. Group related products together.

11 Difficult to Shop?

12 Store Layout - Before

13 Store Layout - After

14 Store Layout - Before

15 Store Layout - After

16 Store Layout - Before

17 Store Layout - After

18 The Fixtures & Equipment Why are they so important? The cash desk (the most important area) Is it the right size? Can it accommodate effective impulse merchandising? Will it stand up to heavy use / abuse? Is it functional? The gondolas & shelving: Are they the right size (length, width, height)? Are they flexible? Do they enhance the merchandise displays? Do they make the best use of the space available? Supplier racks vs. store fixtures. The coolers & refrigeration. Is it the best merchandise display? Are they energy-efficient? Do they display the products you need to carry?

19 The Cash Desk Missed Opportunities!

20 The Cash Desk Merchandised With Impulse Products

21 The Cash Desk

22 The Fixtures The Old The New

23 The Fixtures Functional, Efficient

24 The Coolers Options

25 The Right Merchandising - What are the keys to success? Highlight the categories and products that are growing. Group like products together. Display bestsellers in the bestselling position. Merchandise impulse products in high traffic areas. Rebalance merchandise space allocation to sales. Get rid of poor selling / dead stock. Be committed stand for something.

26 Highlight the categories / products that are growing

27 Highlight the categories / products that are growing

28 Group like products together

29 Bestsellers in the bestselling position Right Wrong

30 Impulse products in high traffic areas Wrong Right

31 Impulse products in high traffic areas Wrong Right

32 Rebalance space allocation to sales

33 Get rid of poor selling products

34 Do a few things well be committed

35 Do a few things well be committed

36 What is Your Store s Image? Does your store s exterior image attract customers? When a customer walks through the door what is the first impression? Is your image one that demonstrates that you care about your customers and the condition of the merchandise you sell? You are in the food business. Do your fixtures, housekeeping, merchandising and cleanliness reflect that?

37 The old exterior image

38 The new exterior image

39 Changing the exterior image

40 Changing the interior image

41 Changing the interior image

42 In summary- How do you maximize sales? Understand your customers and pay attention to their needs. Think about the image of your store, both outside and inside. Make sure your store layout allows you to use all areas of the store. Make sure your cash desk and your fixtures allow for effective merchandise displays. Focus on the segments of your business that are growing; get rid of the poor sellers! Put the bestselling products in the bestselling position; impulse products in high traffic areas. Do a few things well. You cannot be all things to all people.

43 Final thoughts This is a competitive and fast changing market the customers are changing, the competition is changing -if you don t change, you may not survive! To be successful, you must upgrade the image of your store and all of your merchandising. In each of the core convenience categories there are segments which are growing. You need to focus on them and exploit their growth potential. You are running a business have good management information and use it to make smart business decisions. To be successful, you must provide your customers with a good reason to shop at your store rather than at your competitors!

44 Thank you! Hugh Large The Convenience Guru