What happens in the store…
This week we look at three research studies on consumer decision-making in retailers and how to act on these findings
Distance matters: In-store travel drives impulse
Shoppers pass through less than half the aisles on a typical grocery trip, so many products have no opportunity to be considered. Even in aisles shoppers visit, many choices come from accidentally passing a shelf.
These chance encounters matter. Shoppers travel at least twice the distance their planned purchases require, and the more they wander, the more they buy — every extra 10% of travel distance lifts unplanned spend by about 15% ($2.50 in this study).
Placing just three promotions that encourage more travel can raise unplanned spend by over 50%. With real-time in-store location tracking, that is a promising — or worrying? — strategy.
More competition from large assortment categories
Shoppers face many product categories in a small space — the checkout alone may stock sweets, gum, magazines and music vouchers to trigger impulse buys.
Variety in adjacent categories hurts the focus category: shoppers buy less when a neighbouring category offers more choice, as it soaks up their limited attention.
If your assortment is small (common for infrequently bought categories), display it separately or beside other small assortments so it is not overshadowed.
Horizontal beats vertical
Beyond assortment size, layout matters. Horizontal displays are easier to process and increase the number of items selected (see figure) — they match our binocular vision and natural eye movement, making the same range feel more varied than a vertical one.
Retailers should favour horizontal displays in categories where shoppers seek variety and typically buy more than one item (think snacks, cereals, beer).
So smaller brands depend more on each retailer that stocks them — a retailer-side double jeopardy: listed by fewer retailers, and more reliant on each.
