Profits in the Checkout Zone :: essays research papers

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 â€Å"zero waiting time†, if receptacles for those disposable containers carrying deposits take up precious (because scarce) space, if â€Å"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 â€Å"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.