Palmer Retail Solutions Blog

Retail Tips: Why Product Placement Matters

Posted by Kathy Heil on May 5, 2016 12:11:08 PM

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Retailers talk a lot about visual merchandising, usually in terms of store fixtures and display design. But how do you decide which products to display in specific locations around your store? Product placement has a tremendous influence on sales, yet it can be something of a conundrum. 

Product placement matters regardless what type of merchandise you sell or the size of your store. Supermarkets and others that sell food have special challenges, because these products are perishable. If they don’t sell quickly, you may lose your inventory investment rather than turning a profit.

Leave nothing to chance.

Done right, product placement is carefully and strategically planned. Many studies have been done on how well products sell in various display locations. Researchers continue to study the science behind shopping behavior. There are many variables, because human beings are so complex. Nonetheless, we already know many things that can help retailers position products for maximum sales performance.

It starts with your planogram. More than a floor plan, a planogram can (and should) map out precisely which products go on each shelf. Here are some factors you’ll want to consider:

  • Create colorful, welcoming displays near your entrance(s). A pleasant atmosphere encourages people to stay longer and buy more in any type of retail store.
  • Put high-priced items on the top – that’s where the expression “top shelf” comes from. Shoppers searching for those items will happily reach up to get them – just make sure they aren’t too high. That leaves your front-and-center shelves available for tantalizing, impulse-friendly, and promoted merchandise.
  • Put generic brands and staples down low. Customers determined to buy those products will stoop to pick them up, whereas putting your “preferred” items at eye level and within easy reach will encourage undecided shoppers to choose higher-priced products.
  • Give more facings to products you want to be more visible. Instead of one deep row of an item, give it multiple horizontal rows. The repeating color of the label makes a bolder “buy me” statement.
  • Some experts claim shoppers don’t really engage until they are fully within an aisle. They may blow by the first items, missing them entirely.
  • Place fresh produce on tiered shelves for maximum visibility and convenient reach. Mix up colors to make displays irresistibly pretty. For baked goods that tend to be less colorful on their own, use contrasting backdrops or draping to add eye-appeal.
  • Cross-selling by grouping complementary items is proven to increase sales. But which items should you place together? That’s one of the most puzzling conundrums of all. Try things and track results.

Boost product placement with ambiance.

Shopping is a sensual experience. Fragrant flowers, the wonderful smell of fresh-baked cookies, and the aroma of chickens roasting on a rotisserie say all “wow, this place is wonderful!” They entice people to buy things they had no intention of purchasing.

Marketer Cintia Miranda says, “Presenting your offering in a way that’s both logical and irresistible to customers means they’ll be more likely to expand their purchase.” She offers some great tips for seasonal product placement that apply equally well all year long.

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