“As a result, we haven’t had to compensate for lost gondola space.” “With Pinnacle data, it has been easy to figure out what should not be in our set, which has allowed us to expand our foodservice offerings,” Baine said. The bottom 10% in each product category is moved out after 13 weeks on the sales floor.
#CONVENIENCE STORE PLANOGRAM SOFTWARE#
Git ‘N Go Market Stores’ utilizes software from The Pinnacle Corp., which provides real-time sales data for all items. “Planograms should always be created with the best-selling brands in the best-selling positions.”
“Counter and floor displays should be changed at least weekly, and in some cases daily,” said Hugh “The Convenience Guru” Large, principal of Hugh Large & Associates Inc., a consultancy based in Victoria, B.C., Canada. While convenience stores have become more adept at creating sub categories with specific sections, many retailers are still not modifying displays, which can lead to stagnated sales.
#CONVENIENCE STORE PLANOGRAM DRIVERS#
“When bringing in new items, it’s all about maximizing linear space, and traffic drivers need to be bulked up with big displays.” “In convenience stores, there is no such thing as a standard display,” said Tony Noonan, vice president of Handy Mart’s retail operations. Handy Mart, a 29-store chain in North Carolina, is currently updating its older stores to accomplish this. “This will vary slightly from store to store, even if the footprint is the same,” Cahan said.ĭisplays can help influence customer shopping patterns. “This helps visually define the store and experience, while providing retailers with the ability to make changes quickly.”Īnother way to gauge traffic patterns and unveil the power aisle is to monitor customers’ traffic patterns.
“To do this, stores can have employees walk in as if entering for the first time and write down the first five things they see in 30 seconds,” said Linda Cahan, retail design consultant and principal of Cahan and Co., located in West Linn, Ore. To help ensure ideal product placement, the key is to identify the first five focal areas as customers enter the store. “We traditionally try to put our fountain areas in a visual location by the store entrance for impulse purchases, but most of our locations are acquisitions so the layouts are different,” said Gary Tabor, Pak-A-Sak’s director of marketing and sales. test sites for Pepsi’s Spire 5.0 beverage machines, which utilize self-service touchscreen technology to produce more than 1,000 fountain drinks, overall. This replaced a standard 12-valve beverage unit. “To accomplish this, we removed eight feet of gondola space, opened up the coffee bar and installed a self-serve dairy refrigerator in the area,” Baine said.Īmarillo, Texas-based Pak-a-Sak, a 37-store chain, achieved a similar feat by converting its fountain area into a beta test site for new soda dispensing technology. The goal with Git ‘N Go Market Stores separating its foodservice area within its locations was essentially to create a store within a store. To better capitalize on in-store sales, displays, which have been a priority for the grocery, mass and drug channels, are now becoming a bigger emphasis for convenience retailers.Ĭonvenience store retailers are discovering that choosing the appropriate location is the first step in steering customers to high-margin items. Data presented at the NACS State of the Industry Summit is preliminary and derived from company submissions as of March 31. This was up from 29% in 2013.įoodservice remains one of the most profitable categories in this segment, with 56% average margins. At the recent National Association of Convenience Stores (NACS) State of the Industry Summit, studies showed that inside sales in convenience stores grew 5.8% in 2015 to $226 billion, representing close to 40% of total convenience store sales. “The results have been positive.”Ĭonvenience retailers are enhancing in-store displays and updating planograms to better take advantage of rising in-store sales opportunities.
“We repositioned the grab-and-go area by the front door to better highlight our fresh food offerings,” said William Baine, CEO of Git ‘N Go. The retailer recently remodeled its four Tennessee stores, creating space in high-traffic areas for foodservice items and fountain beverages. Convenience retailers are optimizing space by creating distinctive displays that draw customers into the store and maximize incremental and impulse sales.Īlthough it may seem unconventional for a convenience store to take floor space away from a traditional gondola area, shifting the focus to higher-margin foodservice items turned out to be the right choice for Tennessee-based Git ‘N Go Market Stores.
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