Anyone who has ever made a “quick Target run” can attest to the power of merchandising to encourage impulse buying. If you’ve ever walked in looking for toilet paper and dog food, but walked out spending more than $100, you’re not alone. Over 40 percent of consumers end up spending more money inside a store (only 25 percent are spending more online.)
It’s not only Target taking advantage of the consumer’s propensity to overspend. Smart retailers understand that while customers enter and exit a brick-and-mortar store, they could be willing to buy more than what they showed up for.
If 81 percent of consumers are making impulsive purchases at least once a month, you are never done selling and upselling to increase profits and sales. So how do you achieve stronger sales by improving opportunities for impulse purchases from your customers? These strategic merchandising tips can help.
Tip #1: Merchandise Impulsive Items Near the Cash Wrap and High-Demand Products
According to the customer, the cash wrap is their final destination. So, it’s also the area where customers tend to drop their decisiveness.
If a customer has already decided to make a purchase and has made their way to your check-out area, this is one of the best places to capture additional dollars. Strategically merchandising the space both on and around a cash wrap can help merchants increase not only their average units per sale, but also their overall revenue.
Similarly, customer decisiveness decreases once a customer has found the product they came for. This is why it is smart to use your high-performing areas to display these impulsive items. Even better if they compliment your on-demand products, giving you the opportunity to upsell.
Whether it’s a small plush toy or an affordable fashion accessory, the key is to feature items that speak to current market trends while also being affordable for consumers to add to their purchase without thinking twice about it. Price these items at $20 or less for best results. More specifically, when merchandising items that are seasonal or trendy – or both – retailers welcome the opportunity to increase sales thanks to the novelty that these items present to customers.
An indecisive customer in your key areas means more opportunity for impulsive buying and more money for you.
Tip #2: Build a Photo Booth Station Using Store Inventory as Props
Customers love to be entertained. They also love to show off what they’re up to. With Instagram, SnapChat, Tik Tok and Facebook, all popular social media destinations for consumers, why not extend the opportunity from your store to their social feeds to both strengthen sales and increase store visibility?
Through merchandising, retailers can create selfie stations in their stores that feature inventory as part of the display – ultimately encouraging customers to engage with these items. Using impulsive products that are currently for sale in your store (like scarves, hats, sunglasses, necklaces, and plush toys), customers will be presented with the opportunity to get engaged with store inventory while also having some fun.
This combined experience can help lead to impulsive item sales in addition to strengthening in-store merchandising experiences. Don’t forget to encourage customers to share their photos via social media and to tag your store when they do!
Ultimately, a happy customer buys more, so making your customers happy about being in your store is the goal.
Tip #3: Feature Bins or End Units Filled With Impulsive Items
Retailers of all kinds – including fashion, home décor, novelty, children’s and more – benefit from incorporating low cost, high margin items in their stores that appeal to price conscious customers.
Among the ways to do this is to display bins that feature inventory for $1, $3, $5 or even $10. But a key strategy is to organize low-priced impulsive items into bins based on their value and function. An example of this would be featuring a bin for $2 reels of ribbon and another bin filled with $5 bracelets. Keeping your value bin items organized is key to enticing shoppers and to strengthen sales. To further support this, use these bins as central features of your store displays.
End units or end caps are also a great way to feature impulsive items. They allow these items to stand out from the rest just when the customer is entering or leaving an aisle. This can be the perfect time to notice your profitable products they didn’t think they wanted or needed.
81% of consumers making impulsive purchases at least once a month. There’s no better time than now to be among the stores that capture these dollars.
Eight out of 10 impulse buys are made at brick-and-mortar stores – which means most stores benefit by having an impulsive item selling strategy. There’s no better time than now to be among the stores that capture these dollars. Discover high-margin, impulsive inspired inventory at ASD Market Week to help your store strengthen sales – and to help your store shine in merchandising opportunities. Learn more here.
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