Maximize Checkout Performance

To further underscore the value of the Power Categories to overall checkout sales, the study also shows that emphasizing these sectors generates results superior to those that focus on broad variety. In fact, the greatest opportunity at checkout is presented by improving the merchandising of beverages, confectionery and magazines, rather than adding to the assortment of categories available.

Defining Best Practices

Analyzing Front-End Focus results, researchers have defined a number of best practices for retailers to maximize checkout sales.

Merchandise front-end checkout displays to reflect shopper buying behavior. Retailers should select items with high penetration (appeal to large numbers of shoppers) that are purchased frequently and that are commonly bought on impulse.

Focus at the front-end checkout should be on the Power Categories that represent almost 80 percent of front-end sales and profits: confectionery, magazines and beverages.

Identify the key lanes in each store that represent the bulk of the transactions and be sure to stock the Power Categories on those lanes.

Be sure to merchandise self-scan checkout lanes. Consumers do not generally shop the regular checkout lanes and then proceed to self-scan aisles.

Carry confectionery on all the lanes including express, regular and self-scan. If possible, merchandise confectionery on both sides of the consumer to generate impulse purchases.

Maximize magazine presence at the front-end on end-caps as well as in the lane to enable consumer buying opportunities. Shoppers need to browse magazines.

Make sure the top selling magazine titles are broadly available on key lanes. It is more important to carry the right titles rather than a large number of titles at checkout.

Make beverage coolers easily available to shoppers. Carry an assortment of beverages in each cooler that includes water and non-carbonated as well as carbonated beverages.

Provide a moderate space for General Merchandise/Health and Beauty Care. Remember that most of these items are need-driven and many are also located elsewhere in the store.

With the exception of the Power Categories, you can usually meet shopper needs with a limited assortment of just a few popular items.

About The Author

Raymond D. Jones is managing director at Dechert-Hampe & Co. in Northbrook, IL. He specializes in shopper insights, market analytics and customer leadership. He can be reached at (847) 559 0490 or rjones@dechert-hampe.com