As summertime draws to a close, retailers may already have seasonal merchandise marked down or arranged on a separate clearance display table. While these are proven methods for clearing inventory at the end of a season, there is another way to increase sales on the summer products they want to promote and push – end cap displays.
According to the Parker Avery Group, a management consultant firm for retailers, end caps can be quite profitable store fixtures. This is based on the visibility of the merchandise, the easy access that can lead to impulse buying and the tendency to attract customers to the adjacent aisle.
“Due to location within customer traffic patterns and attention-grabbing ability, end caps…have the potential to sell more product than the internal aisle,” the source reported.
How to benefit from end cap design
Marketing research and consulting firm Decision Analyst collaborated with PepsiCo on research regarding maximizing end cap sales, according to the Decision Analyst website. The goal was to determine which products would have the greatest success at boosting sales when arranged on an end cap display. Ultimately, the study into Pepsi’s products was conducted using a store simulator to save the time and money it would take to arrange real merchandise. As stated in the report, products sell better on end caps because they appear to be more available than those in regular aisles and there is an increased awareness among shoppers. Researchers found that any store with 10 to 20 related products can make hundreds of different end cap combinations.
The Parker Avery Group suggested retailers consider profit margin, complementary products, geographic location and seasonal trends when designing end cap displays. Because there is an increased chance of high sales margins for merchandise arranged on end caps, store owners should choose high-grossing products. Complementary products placed near each other can inspire further sales if customers see the value in purchasing both items together. For example, it makes sense to present a selection of batteries on the same end cap that features electronics. To make the most out of the store’s geographical area, retailers may want to research the type of merchandise that sells well in that particular region for ideas of what to place on an end cap display. Finally, anticipating popular events and seasonal changes can guide business owners in the direction of end cap profitability. Consumers will be looking for certain items based on holidays, the weather and cultural trends.
Further tips on how to make end caps work for you
Sales on end cap displays can be bolstered by proper signage as well. According to the Parker Avery Group, signs should grab the attention of customers with a large font, clearly stated price and visible design. With a selection of tags, message boards and promotional posters, the Pricing and Store Signs section of Firefly Solutions can help you greatly. Blocking merchandise by brands can create a cohesive aesthetic for the end cap arrangement, further drawing eyes to the products at hand. When shelving the end cap items, the source recommended placing larger items on the lower shelves because they usually have bolder labels.
End cap themes should be changed up regularly to continue attracting attention from customers. If the same products are on display fixtures every time people come to the store, they may stop looking at the end caps altogether. The Parker Avery Group suggested a one- or two-week end cap turnover rate, though the ideal number may depend on the particular industry.