MASTERING MERCHANDISING 34 — Val Byrd, Merchandising Manager Merchandising Strategy X Product Spotlight How can you INCREASE your average transaction size when store traffic is DOWN? One solution is… Impulse Selling! An impulse purchase is defined as any unplanned buy a customer makes – either in-store or online. Accordingly, impulse selling is the strategy developed to encourage shoppers to make these spontaneous purchases. The plan utilizes the traditional 4P’s of marketing – product, price, place, promotion, but also taps into other predictable consumer behavior patterns such as shopping fatigue. Shopping fatigue… also known as decision fatigue occurs when shoppers have reached the end of their trip. They are mentally exhausted and are more receptive to purchasing small, add-on items that they perceive as low-risk. In marine stores, products prices at $20.00 are prime candidates for an impulse selling plan. You know how the story goes … You go into the store with the intention of picking up a loaf of bread, but you find yourself placing extra items in your cart and ultimately leaving the store with two bags of products. Let’s say your receipt detail shows a transaction that includes 10 items. Well, the 9 products that were not on your shopping list are impulse buys. This is a common occurrence at grocery stores and big box merchants, but it can also happen in your parts and accessories store. Some of the easiest and most profitable sales happen based on consumer decisions made in the final moments before checkout. In merchandising, we refer to this as the “last three feet.” Experts tell us that the right strategy in this area can account for up to 40% of unplanned purchases. This is where a merchandising display counter can make a big difference! Unlike a standard checkout counter, a display counter features built-in merchandising space on the customer-facing side, allowing you to feature high-margin, grab-and-go products where every customer is very likely to see them. We recommend Astoria’s Mobile Cash Wrap, which is shown at right. This modular system is perfect for retailers of all sizes because it can be customized by ordering one or more standard units to build checkout counters in a variety of configurations. Accessories include shelves, accessory rails, display hooks, cash drawers and bins. Additionally, black or woodgrain panels may be added to the sides to coordinate with the individual décor of your store. Yes, every customer who reaches the checkout area brings another opportunity to generate an additional sale. Consider adding impulse displays to your parts or service checkout counters. Even small increases in average transaction value can have a significant impact on revenue and profit goals. Put your valuable checkout and service areas to work building sales. Create an experience that becomes one of the hardest working silent salesmen in your store! For detailed assistance with amping up your checkout area, drop us a note at merchandisingteam@lkqcorp.com
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