Top profits in the checkout zone
Productivity per unit area in the impulse buying zone at the checkout is as much as five times higher than in the rest of a store. And every retailer should rely in this zone on the proven sales getters tobacco, chewing gum and sweets, take very good care of these assortments, and present them in well arranged, tidy fashion – this is the upshot of a new EHI study.
wThe sales area of an up-to-date checkout zone is the result of 20 years of continuous, joint optimisation by retailers and manufacturers. Product range and display are so highly developed in this area that as much as five per cent of overall turnover, and an even higher percentage of profits, are generated by goods placed in the checkout area.
For this reason, checkout zone planning requires utmost attention. So if you are into self-scanning solutions with “zero waiting time”, if receptacles for those disposable containers carrying deposits take up precious (because scarce) space, if “exotic” articles carrying listing charges threaten tried and tested sales getters, you should always consider the influence these measures have on the sales performance in the checkout zones.
No point in non-food articles
The branded products producers BAT, Ferrero, Langnese and Wrigley commissioned EHI International Retail Network to perform a current product mix analysis. Aim: to investigate the sales, costs and earnings of the checkout zone product range and to draw up an operating result calculation for full-line distributors.
For the three sales outlet types supermarket/small hypermarket (average 1,200 sqm), large hypermarket (2,400 sqm), and superstore (6,700 sqm), nation-wide and across retail chains the checkout assortments were recorded article for article according to turnover, profit and space requirement and grouped into merchandise categories.
The underlying idea was to define the optimal assortment for a checkout zone. Whereas “normal” shopping in the general selling area mostly involves rational, targeted buying, the checkout area is the place for impulse buying. However, if the impulse threshold is to be crossed, the price and the brand must be right. The average prices of articles offered in the checkout areas of the three outlet types examined do not differ significantly. The average prices established were 69 cents for sweets and 93 cents for ice cream, i.e., prices which the buyer does not have to think about for long.
The examined merchandise groups were tobacco products, sweets, ice cream in small packages, small alcoholic drinks and non-foods.
Extreme shoppers get a thrill out of buying more than they would be able to otherwise because of the savings they obtain from their bargains. Lyz Lenz wanted to test using coupons vs. using a bargain store. She created a shopping list of groceries needed for the week. At the bargain store she spent $103.16 sticking strictly to her list and only buying what the family needed for the week. At the local store using coupons she s...
One of the ways that Albertson’s has implemented information technology into their business strategy is to offer self-checkout lines. Albertson’s is currently installing 4,500 NCR self-checkout terminals in its 2,300 stores. This new technology is estimated to cost in the range of $16 million to $20 million. Albertson’s feels that this may give them a needed edge to compete to lower its long run costs, and speed up the checkout process.
Walgreens faces intense competition from local, regional, and national drug stores along with independent drugstores. Recently WalMart has also made a push in its pharmacy, further increasing competition. In order to remain competitive Walgreens must evaluate its pricing structure to remain competitive. Failure to change prices will drive away customers and decrease revenue. This method is risk financing is key for their survival in the industry. Walgreens operates on seasonal nature, especially during the holiday and flu seasons. While the store bulks up on seasonal inventory adverse events such as weather, the economy, and gas prices could limit traffic into the store. In order to combat that Walgreens can implement a risk control system that routinely tracks foot traffic into the store to determine in the flow of customers and tracking their spending patterns. This method falls into the third potential loss, failure to meet customer needs, which can affect sales. For Walgreens to be successful its customers must be offered the best shopping experience. Which involves an assortment of merchandise that is attractive. While it is increasingly difficult to track spending patterns, Walgreens must use the risk control method of tracking patterns. Through industry research, Walgreens can determine purchasing habits and
Levy, Michael, Barton A. Weitz, and Dhruv Grewal. Retailing Management. ed. New York, NY: McGraw-Hill Education, 2014. Print.
When comparing two different ways of shopping most people do not even think about the difference, they do both and not even realize it. In today's society people shop while at work, after work and on the weekends, whenever time permits. Stop and think how can I get more time in the day for family or just myself? The best way to figure that out with all the recourses we have is to go into a store and spend time looking through racks and waiting in endless lines to just purchase something. I compared going into a store verses online shopping; to see which one will save you time and money.
Some go right for the shopping carts, while others head for the ATM machine only to discover the posted sign “out of service” those customers head straight to the door maybe to find another ATM machine while the other customers head straight for customer service to return purchases and to pay bills, but before they can return their purchases those customers have to join very long line with only two employees at the cash register with a line that is hardly moving. Further down following the other customer along the aisle you get a quite discovery of just who the customers really are by the choice of product they choose and how long they linger in a specific area whether it is making a decision on what product to buy or a spur of the moment purchase. The most populated area by far that I have o...
...s neat and orderly cart before heading to the checkout stand. As the cashier confirms his credit card, he rebags his items. Insurance and a solid ego are necessary if you are unfortunate enough to run into Picky Pete at the store.
Strip locations which consist of a cluster of stores and are located within a 5 to 10 minute drive;
There are many things that can happen when one wants to go out shopping. Some of those things can sometimes influence the way that shopping experience goes. In this short essay, situational influences are defined and described with clear examples. Furthermore, the psychological influences that one may have are also discussed. Lastly, it is important for one to understand how these types of influences work through a personal example.
The survey offers insight into shopper partiality toward each store identifying the general attitude for the respondents toward each shopping area. Survey results were captured through a telephone based survey of 150 local residents conducted by the Archimedes Group, Indiana, PA (Weiers, 2008).
What do the statistics reveal about the product? This reveals that the market for the two products is present, and combining them will result in a profitable business. This paper is a report on targeting and segmenting the new liquor-filled chocolates as a potential business. To begin with, it is crucial to appreciate the meaning of segmentation and targeting, because these two terms lay the foundation for this report. Consequently, segmentation is dividing a market, into groups of consumers with homogenous traits in order to provide each group with the desired product.
All choices made by Seven-Eleven are structured to lower its transportation and receiving costs. For example, its area-dominance strategy of opening at least 50 to 60 stores in an area helps with marketing but also lowers the cost of replenishment. All manufacturing facilities are centralized to get the maximum benefit of capacity aggregation and also lower the inbound transportation cost from the manufacturer to the distribution center (DC). Seven-Eleven also requires all suppliers to deliver to the DC where products are sorted by temperature. This reduces the outbound transportation cost because of aggregation of deliveries across multiple suppliers. It also lowers the receiving cost. The information infrastructure is set up to allow store managers to place orders based on analysis of consumption data. The information infrastructure also facilitates the sorting of an order at the DC and receiving of the order at the store. The key point to emphasize here is that most decisions by Seven-Eleven are structured to aggregate transportation and receiving to make both cheaper.
When comparing two different ways of shopping most people do not even think about, they do both and not even realize it. In today?s society people shop while at work, after work and on the weekends, whenever time permits. Did you ever stop and think how can I get more time in the day for family or just myself? The best way to figure out with all the recourses we have; still most of us go into a store and spend time looking through racks and waiting in endless line to just purchase something. I compared going into a store verses online shopping; to see which on will save you time and money.
The checkouts used in modern supermarket chains are all capable of EFT and are therefore all considered EFTPOS. In the next few years checkouts or ‘tills’ in all retail shops will use the ICC Barcodes The goods found in supermarkets are labelled with barcodes used to identify specific items on a central database. When the good is scanned a request is sent from the checkout to this main database where the request is handled and the appropriate information returned to that terminal and the correct amount reduced from the stock of that item. The bar codes are formed of lines of different widths and as each line represents a number the resulting code is the information sent to the main computer.
Places such as coffee shops and lounges have been included in the structures of these malls to give consumers a more comfortable feeling of relaxation. Instead of shopping and leaving people are more enticed to sit back and relax. Enjoying a meal and a cup of coffee while shopping has become a time consuming yet enjoyable process for most shoppers. It's suggested that the longer a person stays the more money they are bound to spend. Mall managers and scientist are not attempting to manipulate the consumer but more so enhance their shopping experience. There's also a sense of creativity and connectivity found in calming environments such as coffee shops that establishments like shopping malls are trying to bring to the shopping