In the fast-paced environment of a convenience store, every interaction with customers presents an opportunity to enhance the shopping experience. While doing that, you can also of course increase profitability. And at the end of the day, that is everybody’s main goal. One such opportunity lies in the power of Point of Sale (POS) merchandising.
Strategically placed products and well-designed displays at the checkout can have a huge impact on how your customers shop. The biggest value lies in taking care of impulse purchases. Oftentimes those contribute to the overall profitability of your store.
Therefore in this article we will explore how to effectively leverage POS merchandising, while discussing suitable products, display design, and the use of POS technology to optimise results.
Understanding impulse purchases at the POS
To fully harness the power of POS merchandising, it’s essential first to understand the nature of impulse purchases. Especially in a convenience store setting.
To start off, it is important to understand that impulse purchases typically involve items that consumers buy without prior planning. Those are often triggered by seeing the product right before checkout. In very simple terms, when you do not plan to buy something but end up buying it impulsively – an impulse purchase is made.
These purchases can significantly increase the average transaction value in your store, boosting overall profits. Factors that can enhance impulse purchases include the attractiveness of the product display, the perceived value of the product, and its relevance to the consumer’s immediate needs or desires.
Choosing suitable products for POS displays is essential
It is important to think about the selection of products displayed at the POS displays. It is so because they can greatly influence the effectiveness of your merchandising strategy.
Items that are often purchased on impulse make excellent choices for POS displays. These might include small, lower-priced items.
Examples could be anything similar to:
- Candy,
- chewing gum,
- snacks,
- magazines,
- novelty items etc.
Limited-time offers or promotional items can also draw attention and stimulate purchases. Additionally, consider items that add value to other products in your store. Examples could be batteries near the electronics, or wine bottle openers near the alcohol section.
Remember that the key is to offer products that can be quickly and easily evaluated by customers as they wait at the checkout. It needs to be something that any customer either could’ve forgot to buy and realised they needed last second.
How to design an effective POS display
The design of your POS displays plays a critical role in capturing customer attention and influencing purchasing decisions. That is why it is so important to know how to design an effective POS display.
Good POS display design should be visually appealing, drawing the customer’s eye as they approach the checkout. Therefore it is good to use clear signage to highlight special offers or new products.
Another tip is to keep the display neat and well-stocked, as a messy or sparse display can deter customers. Ensure the items are easy to pick up and examine. The easier a product is to interact with, the more likely a customer is to purchase it.
Make sure to balance additional purchases and checkout efficiency
While POS merchandising is a powerful tool for encouraging additional purchases, it’s important to balance this with maintaining an efficient checkout process.
If your POS area is too cluttered or the displays obstruct the checkout process, this can cause frustration. Then the slow down of transactions follows. It is good to keep in mind that your customers will value a quick, smooth checkout experience. Especially in a convenience store setting.
Be mindful of the space you have available and ensure that your displays enhance rather than hinder the checkout process.
POS technology for merchandising decisions
Modern POS technology can provide valuable insights to inform your merchandising decisions. It will also help you to maximise the profitability of your POS displays.
POS systems can track the sales of each product in your store, providing data on which items sell well, at what times, and in what combinations.
You can use this valuable information to choose suitable products for your POS displays, identify effective promotions, and determine the optimal placement of items.
Some POS systems also offer inventory management features. That will help to ensure your POS displays are always well-stocked.
Conclusion
Point of Sale merchandising is a strategic tool that, when used effectively, can significantly enhance the profitability of your convenience store. If you understand the drivers of impulse purchases, then you can optimise your POS merchandising strategy.
That will create a checkout experience that both satisfies customers and boosts sales. Remember that effective POS merchandising goes beyond just placing products near the checkout. It involves carefully analysing customer behaviour and making strategic product choices.
Best of luck to use your newly gained knowledge on Point of Sale merchandising in your business!
Check out our other articles such as How to Design Eye-Catching Vendor Display Stands or Optimizing Supermarket Layouts with Strategic Merchandising.
