Retailer 3 – the small shop

confectionery, category, advice, Pratik Sampat

Selling on Impulse, Pratik Sampat

Pratik Sampat

  • Location: Penge, south-east London
  • Store size: 1,000 sq ft, small impulse/convenience
  • Been in business: 6 years
  • Customers: mixture, mainly elderly

Pratik Sampat’s south London store is 100 years old. He has owned it for six years and, after taking a break, returned to run it a year and half ago. The store has had a refit and majors on cards and stationery, not least because the opening of a 99p Store nearby has had a serious effect on soft drinks and confectionery sales. Pratik believes in creating a point of difference rather than competing head on and has invested in a huge range of cards and gifts as well as offering passport photos and pricemarked products.

Before

Confectionery

  • Confectionery displayed on main fixture, under till, midway down shop.
  • All new lines stocked at launch, and customer requests used to increase range.
  • Pratik is keen to increase sales and improve merchandising.

Soft Drinks

  • Soft drinks displayed in open chiller by window at front of store.
  • Best sellers include Coke and Diet Coke and bottled formats.
  • Range recently reduced to cut number of products and focus on best sellers.

Crisps & Snacks

  • Crisps and snacks displayed on one fixture to side of till.
  • Stock received from direct-to-store vans.
  • Range exclusively from Walkers, with access to point-of-sale material and merchandising advice.

Category Advice

Mars: ConfectioneryMars, selling on impulse, logo

  • Introduce the right range of confectionery to the main confectionery fixture.
  • Multiface the best sellers.
  • Group products by category and allocate space according to sales.
  • Increase gifting range of chocolate to tie into other gifting categories in the store.

GSK: Soft DrinksGSK, selling on impulse, logo

  • Group like products together and give more facings to top selling products.
  • Tighten up vertical blocking.
  • Implement a needstates flow to make it easy to find products.
  • Reduce facings on slow selling lines.

PepsiCo: Crisps & SnacksWalkers, selling on impulse, logo, pepsico

  • Extend the range of standard crisp flavours to provide greater choice.
  • Add a clipstrip of “better for you” ranges such as Walkers Baked, Sunbites and Lights to appeal to female customers.
  • Add new flavours to create added interest among regular customers.
  • Introduce Walkers’ two for 70p promotional packs.

Results

Confectionery

  • 23% better performance than total market in one month after changes.
  • Improved understanding of the need to keep to a core range and improve merchandising.
  • Advice made section easier to run, including understanding what to stock and what to delist.
  • Merchandising led to increased sales and visibility for several leading products.

Soft Drinks

  • 15% growth above the market.
  • Increased sales of more profitable formats, such as bottles, due to new merchandising.
  • Adherence to a core range of well merchandised products that increased profitability and made section easier to run.
  • Better understanding of which products to stock and those to delist.

Crisps & Snacks

  • Demonstrated the importance of stocking secondary flavours to offer customers greater choice.
  • Better understanding of effective category management.
  • Encouraged analysis of sales records to identify a range and display tailored to specific customer base.
  • Highlighted the importance of promotions and the need to use these further in future.

1 COMMENT

  1. It is interesting how the retail market has evolved recently and responded to the hard economic times and credit crunch. This is witnessed by the growth of Poundland, 99p stores and development of Value range by big supermarkets and it is working.

    So what about the Independents and how can they respond. How about if they develop a ” Pound Corner” or “Value Corner” where everthing is say 99p. It is simple marketing but it works.

    Worth trying.

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