The Sweet Strategy: How Candies Boost Impulse Buying in Grocery Stores
On the 23rd of November, 2023, I found myself meandering back home. As I strolled, I decided to make a pit stop at Tesco Express to pick up some supplies. As I ambled through the aisles, wandering over what else to add to my basket, I found myself at the checkout counter. It was there that I impulsively grabbed a pack of gum from the display near the till. I wonder what it was?
Impulse Buying: A Retail Strategy
In the world of retail, product placement is a strategic decision that can significantly influence consumer behavior. One of the most common examples of this is the placement of candies and chewing gums near the tills in grocery stores. But why are these items specifically chosen and strategically placed there?
The primary reason behind the placement of candies or mostly chewing gums near the tills is to encourage impulse buying. Impulse buying refers to the unplanned decision to buy a product just before the purchase is made. Retailers capitalize on this behavior by placing small, inexpensive items near the checkout area.
Why Candies and Chewing Gums?
Candies and chewing gums are perfect candidates for promoting impulse buying due to several reasons:
- Affordability: These items are typically low in cost. Shoppers are more likely to make unplanned purchases if the financial risk is low.
- Size: Due to their small size, candies and gums do not take up much space and can be easily accommodated at the checkout counter.
- Indulgence: Candies and gums are often associated with a sense of reward or indulgence, making them attractive impulse purchases.
The Power of Last-Minute Marketing and its Impact on Sales
The checkout counter is the last point of contact between the shopper and the store. It’s the final opportunity for the store to boost its sales. By placing enticing products like candies and gums at the tills, stores can effectively utilize this last-minute marketing opportunity.
While each candy or gum might not contribute much to the store’s revenue individually, the cumulative effect can be substantial. Given the high footfall in grocery stores and the frequency of these impulse purchases, the strategic placement of these items can significantly increase the store’s overall sales.
We shoppers have spent staggering $6 Billion in the checkout area as of 2020. This has expected to grow to $8 billion by the end of 2023. Its not just about the candies offered, but also about understanding the psychology of the consumers who are about to exit the store. The combination of the right products at the right place lead to a significant increase in sales, as evidently shown in the above figure.
Let’s talk, Business!
From a business perspective, impulse buying behavior can be a lucrative strategy. By understanding the factors that trigger such behavior, businesses can strategically place products to maximize impulse purchases. The profit from these small, unplanned purchases can add up quickly, contributing to the store’s overall revenue.
Impulse is important for the Check-out experience
The strategic placement of candies near the tills in grocery stores is a testament to the power of understanding consumer behavior. It’s a clever strategy that not only boosts sales but also enhances the shopping experience by offering customers a last-minute treat. So, the next time you find yourself reaching for that candy bar while waiting in line, remember — it’s all part of the strategy!
Have you ever wondered what it was, while making a purchase at the till?
