Straight lines of shelving stuffed with products are so last century, when linear feet of static shelves stuffed with products greeted customers walking into retail stores. The mindset of the more products, the better has been prevalent in retail circles for a long time, but this type of merchandising can leave customers wanting to get in and out of your store rather than wanting to linger a bit—and buy more.
“Clutter and space are always an issue,” said Scott Hein, travel store manager for Iowa 80 Truckstop in Walcott, Iowa, which bills itself as the world’s largest truck stop. “Even in our large store, we still have to be choosy about what products to bring in to avoid a cluttered space.”
From supermarkets to convenience stores, retailers are clearing the clutter as they rethink merchandising to better fit how consumers shop their stores. This means revamping not just the type and position of shelving units, but also how many items to stock and what promotional displays to incorporate.
The Merchandise Landscape
As consumers continue to have more options for where to spend their shopping dollars, retailers need to stay on top of merchandising trends to keep customers engaged and coming back on a regular basis. “Over the past decade, the convenience store merchandising landscape has undergone notable changes to adapt to shifting consumer preferences and market dynamics,” said Tim Young, customer business manager with Crossmark.
Here are the top four merchandising trends in the convenience industry.
Inviting store layout. Retailers are investing in creating more appealing and customer-friendly store designs. “They have adopted open and inviting designs with wider aisles, well-organized product sections and prominent displays,” Young said. “Clear signage, efficient checkout counters and designated areas for promotional displays have become standard to enhance the overall shopping experience.”
Iowa 80 created wide aisles to accommodate heavy traffic, especially during the May to November prime traveling season. “We want to keep our pathways as open as possible, so we’re very picky about adding temporary vendor displays or other merchandising units,” Hein said. “We always look at the broader view when considering changes to displays.”
“These visually appealing displays create a sense of urgency and encourage impulse purchases.”
Data-driven merchandising. The availability of advanced analytics and sales data has enabled c-stores to make more informed merchandising decisions. Having a data-driven approach helps c-stores improve inventory management, reduce waste and maximize profitability.
At Iowa 80, the 11 department managers review merchandise data on a daily as well as monthly basis. “Sometimes, when you’re looking to get your sales up, you think adding more options is the way to go,” Hein said. “But then you’re left with too much stuff, and it’s not shoppable for the consumer.” Instead, to keep inventory fresh, Iowa 80 analyzes the sales data on its nearly 60,000 SKUs to see which ones are selling and which are not.
Product placement. Retailers now place greater emphasis on optimizing the placement and visibility of products. “This involves strategic positioning of high-end items at eye level, near checkout counters or within a queuing design to ensure easy access and to capture consumer attention,” Young said.
Promotional displays. “Eye-catching displays near entrance areas, endcaps or designated promo zones highlight featured products, limited-time offers or bundled deals,” Young said. “These visually appealing displays create a sense of urgency and encourage impulse purchases.” He mentioned that one retailer is testing an endcap display that automatically changes product assortment based on dayparts.
No Clutter Zones
Clearing merchandise clutter in c-stores while maintaining the desired product selection requires a strategic approach by retailers.
Here are six effective strategies to achieve a clutter-free environment while still catering to your customers’ needs.
Develop a clean store design. Consider a minimalist store design to bring a sense of spaciousness. Neutral colors, adequate lighting and clean signage contribute to an inviting environment. “This design approach can make the store feel less cluttered,” Young said.
“We work hard to reduce the visual clutter for our customers,” said Nathan Arnold, director of marketing for Englefield Oil in Heath, Ohio, the parent company of Duchess, a 120-unit convenience retailer. “Using merchandising fixtures like bins and tables, we take product out of floor displays and shippers to strategically place them on those fixtures. This reduces an extra and often busy-looking cardboard display on the floor while ensuring the product is visible and in locations where our customers are shopping.”
Use space well. Retailers and manufacturers have worked together to create merchandising vehicles that draw consumer attention without creating clutter. For example, many retailers have fixtures placed under the counter at the payment area, under the foodservice counter and on top of the coffee bar and fountain drink areas. “Manufacturers also provide side panels that affix to the side of an end cap to merchandise product without getting in the way of consumers,” said Daniel DeMeyer, senior director sales strategy, Kellogg Company.
“We want to keep our pathways as open as possible, so we’re very picky about adding temporary vendor displays or other merchandising units.”
Wall-mounted racks, gondola extenders and hanging displays create a sense of openness while showcasing items. “Going vertical allows for a more efficient use of floor space and reduces clutter on counters and checkout areas,” Young said.
Evaluate the layout and organization of your store shelves to make sure products are neatly displayed and aren’t crushed together. Planograms can help organize shelf space. Young recommends adjustable shelving systems to accommodate different product sizes.
Simplify product categories to avoid overwhelming customers with too many options. By grouping related items together under clear labels, customers can navigate your store more efficiently. For example, organize snacks by type (chips, cookies) or dietary preferences (gluten-free, organic).
Garner feedback. Successful c-stores actively engage with their customers and employees to improve their merchandising strategies. “This can be done via a loyalty program, surveys or interactive touchpoints within the store,” Young said. Ask employees at all levels for their suggestions on how to merchandise categories. By listening to customer preferences and team member ideas, stores can continuously refine their product selection and merchandising techniques.
Have impulse-purchase zones. Create dedicated areas near checkout and high-traffic areas to display small, high-margin products. “Retailers are using space at high-traffic destinations to merchandise high-impulse, high-margin items to help build their basket size,” DeMeyer said. He gave several examples from the industry. A decade ago, 7-Eleven began using the space under the front counter to place confections, gum, mints and salty and sweet snacks. Sheetz and Wawa have historically merchandised salty snacks under the foodservice counter to entice consumers to purchase sandwiches with chips.
In-queue merchandising has become a recent trend for convenience retailers. It does require adequate space to merchandise to customers as they approach the transaction counter. “The best results are seen by placing top-selling, core SKUs in secondary positions along the queuing lanes,” DeMeyer said. Circle K, Rutter’s and Sheetz have all implemented queuing lines, with snacks strategically placed along the path to the transaction area.
Look at how other retailers merchandise products, what fixtures they use, what products they promote and feature and how they develop a customer experience.”
Self-checkout lanes are also an opportunity. “Retailers are placing high-impulse snack items near the self-checkouts to incentivize last-minute purchases,” DeMeyer said.
Cross-promote merchandise. Arrange related products together to encourage cross-purchasing, such as putting chips and dips together or breakfast items near the coffee service. This strategy not only increases sales, but also enhances the customer’s shopping experience by suggesting complimentary items. “Knowing the category affinities can help retailers understand what the best products are to place in each area,” DeMeyer said. For example, salty snacks have a strong connection to both the foodservice and fountain beverage areas, as consumers who buy a sandwich, slice of pizza or fountain drink are all likely to pair those items with a salty snack.
Ask outsiders. With many c-store chains being small, often family-run businesses, Arnold suggests tapping into supplier partners who have planogram merchandise software. “They can give you suggestions for improving customer flow and identify possible impulse-purchase decision locations,” he said.
Arnold also pointed out the value of looking at retailers outside of the convenience store industry. “Look at how other retailers merchandise products, what fixtures they use, what products they promote and feature and how they develop a customer experience,” he said. “These large retailers have teams focused on these merchandising components, and you can learn a lot by analyzing their choices.”
Leveraging High-Traffic Destinations for Impulse Snacks
Impulse purchases build basket sizes, and snacks are one of the industry’s biggest impulse buys.
Here are four ideas on how to create these impulse opportunities from Daniel DeMeyer, senior director sales strategy, Kellogg Company.
Front counter area
Place multiple best-selling items, such as salty snacks, crackers, confections, sweet snacks, gum and mints here. “It’s a great opportunity to add impulse sales that will lead to higher basket rings,” he said.
Lobby area
If your store has space, install queuing lines or use manufacturer-provided racks to add space for impulse snacks.
Fountain beverage area, cooler door racks and foodservice counter area
These areas are prime for adding secondary top-selling salty snacks, since this category has a strong affinity with beverages and foodservice items. These can also be bundled during meal dayparts.
Coffee area
Create space for items typically purchased with coffee, such as breakfast bars and pastries.