The scoop on product placement
By Gordon Hecht, YSN Contributor
It’s been so warm this fall in Del Boca Vista (Phase III) that the Christmas candy has started to melt at the local Walmart. While the leaves may have turned color in your town, me and my ever-lovin’ bride were able to take a beach walk and swim.
On the way home we stopped for a couple of scoops at our local ice cream parlor. It’s been a while since we were there. I noticed that just past the front door they added one of those claw machines. You know, the game where you put in a buck and get to position a claw in the attempt to snag a prize (retail value: 75 cents).
That bright, sunny day attracted several families. The kids (and a few parents) were mesmerized by the treasure trove within the claw machine. Each munchkin was provided a dollar or two, which was quickly invested in trying their luck at winning a prize. All before spending $4.50 for a scoop of Moose Tracks or Double Chocolate Malted Crunch.
Where It’s At
The placement of the claw machine contributed to the families’ spend. Had it been set in the back of the parlor many people wouldn’t have seen it. And certain parents might have been reluctant to dish out dough to the kids after shelling out $25 or so on ice cream.
Putting the same machine in a different spot would have reduced revenue.
It’s probably the same for your shop. Based on walking paths, you likely have hot spots and dead zones in your store. It could be the lighting, or being by a window or door, or close to the cash counter.
Stack that on top of what’s near the front entrance. Most shoppers make up their mind about your store after walking in just 15 feet. Should you put your best high-price merchandise or a “hot buy” sale item at the door? Or something in between?
The high-price item may cause sticker shock. Or it will make everything else look like a bargain. The hot buy may create a quick sale, but may not be the best option for the shopper.
No ‘Right’ Way
When it comes to mattresses, many stores merchandise by brand while others by support system (hybrid vs. foam vs. innerspring). I’ve seen a few stores merchandise mattresses by comfort level, keeping the plush, firm and medium beds grouped separately.
Here’s a couple of cool things about merchandising: each store and market are a little different. We can’t really set an ironclad rule of the “perfect” way to do it. And while beds and washers are heavy, they are not nailed to the floor. Meaning that merchandise is moveable, and merchandise is changeable.
Start your research with a velocity report. See which models are moving the quickest. Their current placements are probably your hot spots. If lower priced models occupy the hot spots, you may want to shift the higher margin items into those slots.
Next, check your slower moving models. They may be in dead zones. You can reserve those spaces for your hot buy and promo models. Those products will sell wherever they are placed!
Stay the Course
Your next step should be to review the logic and plan of your floor merchandising. Whether you arrange your floor models and samples by category, brand, comfort level or support system, the arrangement should be consistent.
Mind you, it is OK to mix it up every now and then. Supermarkets and convenience stores, those with weekly repeat buyers, don’t change often, lest they disrupt customers’ shopping patterns. But high-dollar retail shoppers don’t repeat as often and don’t have established patterns.
If you are unsure of where to start, call in an expert. Your factory sales reps are trained in the art of merchandise placement and can become an awesome resource in setting your store for success.
Gordon Hecht is a consultant to the home furnishings trade with over four decades in retail and manufacturing and more than 500 industry newsletters and articles under his belt. His award-winning experience includes tenured time with Ashley Furniture Industries and Serta Simmons Bedding, with progressive responsibility for large and small retailers. Contact him at gordon.hecht@aol.com.
