Retail Store Display Shelves: 4 Words That May Be Why Retail Sales Are Not What You Expected
Regarding retail sales, the conversation often swings to promotions, discounts, and new product launches. But let’s face it—one frequently overlooked piece of the puzzle can significantly impact sales: **retail store display shelves**.
They are your silent salespeople. And when these silent salespeople don’t perform, it might not just be your sales that are impacted—it could also be your future loyalty and reputation.
The Cost of Poor Merchandising
Retailers are notorious for their inconsistent merchandising strategies, often leaving CPG brands in a bind. An astounding 70% of purchase decisions are made at the point of sale, yet many brands rely on retailers to provide optimal presentation of their products. Spoiler alert: they often don’t. For example, many large Canadian retailers have faced criticism for poorly executed or redundant shelf setups. Think of cases where your products are not placed according to a planogram or, worse, a configuration that results in your brand being mixed in with competitors without consideration of visual distinction.
Commerce research revealed that poorly executed merchandising strategies can result in a staggering 15-20% dip in potential sales. If retailers can’t communicate the value of their products, how can they expect consumers to see them? Let’s not ignore Canadian retailers like Loblaws or Sobeys, which have drawn ire for showcasing similar products without the differentiation needed to entice buyers. Consumers who walk into a store inundated with similar options need an apparent reason to choose your brand. If that reason isn’t visually articulated through your presence on retail store display shelves, you will leave sales on the table.
The Investment Paradox
Investing in retail display shelves is a must, but how many of us think twice about what ‘investment’ really means in this context? It’s more than just a financial outlay; it’s about executing effective strategies to ensure your products shine in front of the consumer. Failing to stand out can be a costly mistake.
For Canadian CPG brands aiming for broader reach, optimizing your retail display shelves is essential. Statistics show that a well-merchandised product can experience up to a 30% sales increase. You owe it to yourself—and your shareholders—to ensure that every dollar spent on display structures translates into profit.
The Vital Seven
Before we wrap things up, consider this your crash course in what makes retail store display shelves matter:
- Visibility: When you are investing in special promotions, poor placement/no placement leads to poor sales.
- Clear Branding: Products are positioned attractively on the shelf with branding facing outward.
- Pricing: The product is priced correctly, especially if there is a promotion.
- Consumer Experience: Engaging displays create memorable shopping experiences.
- Seasonality: Update displays in alignment with trends and seasons to capitalize on impulse buys.
- Stock: There is no reason the product should not be in stock, and provisions should be made at key retail locations to ensure this doesn’t happen. Self-checkout makes this very challenging for brands, so a partnership with a merchandising partner who has boots on the ground visiting those stores is critical.
- Feedback Loop: Collect and analyze data on sales and consumer behaviour around displays to improve continually.
For C-suite executives and mid-market brands selling in Canada, remember that complacency in merchandising can mean lost revenue. If you want to reimagine your retail store display shelves and elevate your sales potential, contact Marketsupport. Let’s turn those silent salespeople into revenue-generating machines. For more information about stepping up your in-store merchandising, visit www.marketsupport.ca.
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