Over the past decade, prices in our retailers are becoming more and more competitive. The frequency of a ‘price drop’ or ‘EDLP’ is now more prevalent than ever before. While retailers continue to control margins, and suppliers are left no other choice but to adapt and reformulate plans, what else is there to do to ensure products have the highest opportunity for conversion in store?
There are two simple steps to remember and emphasize, to give yourself the best opportunity in achieving a higher sell through.
1. Price visibility
Sounds simple, right? So how important is a visible price ticket on a new product? 19% of consumers admit to not purchasing a new product without a price ticket, whilst a staggering 1 in 4 millennials are even less likely to try something new if they cannot see the price. It may not sound so detrimental to your business, however, put this into perspective. 250,000 sku’s going into Coles or Woolworths, minus 19% of consumers deciding not to purchase as they are unable to see a price. That’s 47,500 potential lost sales units, due to poor ticketing.
2. Shelf availability
We have all experienced that deflating feeling when you’re approaching the aisle, only to find the product you were looking for, missing. 13% of customers that are unable to find their normal pre-planned item, will just purchase another item similar, whilst those under the age of 35 are twice as likely to jump brands than those over the age of 55. Baby boomers are the most loyal shoppers as they prefer to stick to what they know and aren’t as open to try other brands.
Improving shelf presence by managing stock levels in store and ensuring price visibility in all locations,is the perfect start to the perfect execution of maximising sales opportunities. Download your copy of The Grocery Shopper 2020 Summary Report