Convenience Store News - May 2018 - 68

CANDY & SNACKS

2. Under the counter: Retailers who have
executed this method saw an average of
a 10-percent to 12-percent lift in category
sales, with a 36-percent increase in frontend conversion, according to Tobin.
3. Queue line: Recent Hershey research
showed a 56-percent increase in buyer
conversion at the pay point after a queue
line was installed.

Crossing Categories
C-store retailers can "lean into" the candy
and snacks categories by implementing
everyday promotional pricing like "Buy 1 for
$1.29 or 2 for $2.50," which will boost both
unit and dollar sales.
Another option is performance-based pricing, such as "Buy 2, get 1 free." This strategy
drives more units in the basket vs. a base
price reduction on a single unit, according
to Tobin.

"Candy and snacks - both salty
and sweet - are very important
to a c-store's profitability. These
categories carry above-average
margins and provide a strong
impulse purchase opportunity for
many of our guests."
- Ken Hagler, Tri Star Energy LLC

On the other hand, c-store retailers can use
other categories to their advantage, namely
cross-merchandising and promotional
ties with other high-affinity categories like
fountain beverages, packaged beverages,
hot beverages and foodservice.
"Outside of the category, we've seen a lot of
relying on those affinities to bundle, like buy
a baked sweet good and add on a coffee
for $1, or buy a packaged beverage and add
on a candy bar for X dollars. It provides a
value to the customer and allows c-store
retailers to lean in to their affinities," said
Joe Thrash, national trade relations manager for McKee Foods Corp., manufacturer
of Little Debbie packaged sweet snacks.

Can You See Me Now?
On average, c-store shoppers spend only

68 Convenience Store News C S N E W S . c o m

Twice Daily emphasizes its candy and snack items by strategically
displaying these categories on the way to and from destination zones,
such as the beverage cooler.

between two and three minutes in the store, which presents a unique challenge - and opportunity - for retailers
to engage and interrupt their path to purchase. Although it
seems like an obvious solution, clear and simple signage is
a must to communicate specials and promotional offers to
capture incremental basket rings.
"One of the biggest gaps we see with the c-stores we
work with is not having enough signage and callouts to
grab customers' attention, especially when it's a bundle or
a price-driven offer, so the customer sees it and gets the
chance to make that decision," Thrash said.
"Too often, signage doesn't make sense to focus on the
bundle offer or is just not there," he continued. "If it's not
there, you're not giving a customer a promotion, you're
just giving them something they didn't actually know
they were getting."
Fellow McKee Foods executive Rick Matthews, new
business specialist for convenience stores, builds on this
theory by pointing to proprietary research that shows
packaged sweet snack consumers only spend about 8
seconds in the category.
To draw them in, he suggests a heavy reliance on wobblers
and danglers.
And signage isn't the only measure convenience store
retailers should be taking to ensure shoppers can find
the candy and snack items they want - whether they've
planned ahead to purchase or decided on the spot. Proper
placement and merchandising strategies will have a positive impact on the c-store shopper's experience and the
retailer's profitability.
"[Retailers] have to be consistent. Having SKUs in the
same place in the store every time is critical because a
customer who's coming in for 8 seconds isn't searching,"
Matthews said. CSN


http://www.CSNEWS.com

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