Impulse merchandise refers to products that are bought by a customer at a whim and were initially not a part of their shopping list. These are generally low ticket items where the customer does not have to think twice before purchasing them. These usually add on greatly to the revenue of a store and can be the best sell for a retailer as the profit margins of these products are very high. It has been noticed that if the retailer effectively places the merchandise, then impulse purchases account for about 50 per cent of the total retail purchases.
Planning the merchandise
Planning the merchandise is the most important aspect for impulse merchandising at POS. Planning includes the decision of how much of what should be kept. Upcoming trends and promotional plans should also be reviewed and products for the coming months should be decided in advance. Limited-edition variants work very well for retailers as they fascinate the customers with their exclusivity. Impulse items displayed should be such that the customer may not require making any inquisitions about features, benefits, sizes, compatibility, or any of the other areas of inquiry that they have to make otherwise.
Easy access: The key to success
The key to success of impulse buying at POS is easy access. Merchandise should be kept at a hand’s distance within the reach of a customer so he can just grab it. They should not be placed in cases or in lock and key because at times the customer is in hurry so would not go into the hassle of asking a salesman for help whereas if it is right in front of him he would not have had a second thought about making the purchase. Putting together items of the same category helps increase impulse sales.
The designing of the POS area needs to be well thought of. This area should be adequately filled with products but should not give a cluttered look. The area should be visually appealing and enticing to give a warm feel to the customer. A lot of lights should be used so the merchandise can attract a customer from a distance. The prices of these products should be well displayed. Also the fixtures used should be clean and shiny rather than being old and worn out as this quite influences the buying behaviour of a customer.
As a retailer, today you need to effectively improve the POS counters and encompass a broader range of products. By putting this in place, you can persuade last-minute buying decisions of the shopper and add an extra penny to your profits.
Items on display
Chocolates and candies
Movie DVDs and VCDs