Convenience retail is arguably experiencing its biggest ever shakeup. Consolidation across the market creates an element of uncertainty and increases the pressure on independent retailers. This, coupled with the rising demands of shoppers creates a greater need for the sector to remain ahead of trends and adapt quickly.
But is it all doom and gloom for a sector that is forecasted to see consistent growth over the next five years? Absolutely not! Is there still room for independent convenience stores? Absolutely! These pressures will cause numerous challenges to retailers, but there is a wealth of opportunity for independent players to tap in to.
On average, shoppers visit c-stores more than three times every week, creating plenty of openings for retailers to boost their sales and increase consumer basket size. However, these visits last less than 5 minutes each time, so the opportunity to interrupt and influence is minimal. In fact, we know from our Convenience Display Effectiveness research (CoDE) that we only have 0.9 seconds to make a shopper notice a display. So how can you influence your customers in under 5 minutes to drive sales and footfall?
Mission-led merchandising is becoming a prominent feature in multiple and mini-multiple convenience stores and can be key to driving higher basket size and spend. However, it not only gives you the opportunity to upsell into other categories and promote more premium labels; it also creates a more convenient shopping experience, which can help increase loyalty and footfall frequency to your store.
Mission-led merchandising isn’t the only way for retailers to tempt or inspire shoppers. 77% of convenience stores use secondary locations to drive awareness and penetration towards a category. The use of innovative and well-placed secondary locations will distract shoppers and tempt them into an impulse purchase and incrementally improve sales. With 38% of impulse purchases being made due to temptation there is a large opportunity here. Alcohol and soft drinks are the two best performing categories when it comes to secondary locations, generating the most incremental sales.
It is vital that suppliers, retailers and wholesalers all work together in order to maximise the opportunity that is available. Many shoppers are looking for inspiration, but are not willing to spend a lengthy amount of time in store to find it. Understanding the key methods of influencing a shopper whilst in store will enable you to build a robust strategy and achieve optimal growth in the future. Failure to act on this will hinder your ability to maximise growth.
Join us as we delve deeper into the subject at the HIM Convenience Conference on 9th May 2018 at The Crystal in East London. Hear from industry leading speakers and HIM experts to understand how you can successfully disrupt your shoppers in store and drive incremental sales.
We have welcomed a sell-out crowd of industry influencers in the past two years, so be sure to book your ticket early.