Country: Canada
Category: Retail, CPG
Date: May 2010
Tactic: Shopper Marketing News
In Store Aisles, Less Is More: But the Right Offering is Important
Description:
Retailers are now reducing the amount of choice on their shelves. After years of tempting customers with ever expanding arrays of brands, hues, sizes and flavours, they’re racing to simplify their offerings. The recession has encouraged them to focus on top sellers and private labels while throwing marginal products overboard.
Reducing the number of products can help companies increase sales. But the process of choosing which products will die can be hit and miss – and retailers risk a customer revolt if they get it wrong. While picking the wrong products to dump can lose sales, a growing body of evidence suggests that reducing the number of products on the shelf can improve the overall shopping experience.
IMI Implication:
SKU proliferation has happened since the 1950’s. This new study suggests providing clear and simple alternative (or shelf comprehension) can decrease decision times and increase basket size. For retailers, consider the opportunity cost of what shoppers are NOT able to get-and are they may be going to competitive retail to get it.
Source:
Tags: Brand Marketers, GlobalPulse™, Impact, In-Store Marketing, Insights, Shopper Marketing, Syndicated Marketing Research