A thriving supermarket chain with more than 1,000 locations in 10 Southeastern states was facing a challenge all too familiar to grocery retailers. As consumer interests have shifted increasingly toward fresh, healthy and quick meal options, the variety of pre-bagged salads and pre-cut produce has also grown. While the grocer’s ability to display more product results in more variety for consumers, it also translates to increased revenue for the supermarket.
But bagged produce requires frequent stocking and rotation, which can be more time-consuming and labor-intensive than other grocery items. Many supermarkets use traditional pusher systems to display bagged produce, which compounds the problem. Traditional pushers make rotation difficult because employees need to reach back to remove items and wayward bags often get caught or dropped. Standard pusher systems also tend to crush or bend softer packages, creating a poor product visual when displayed. And their inflexible design can’t easily accommodate new or added product lines.
“The benefit of having a display that can showcase additional product facings is huge,” says Betsy Stevenson, Southeast region sales director for Retail Space Solutions. “For this retailer, 10-12 additional product facings can result in a 2-3% average increase in incremental sales.”
The solution
Retail Space Solutions (RSS) collaborated with the retail grocer to engage the services of an outside, independent third-party company to evaluate qualitative and quantitative test metrics as part of a six-month Return-On-Investment study. First, the company installed its SpaceGrid® II system at five of the grocer’s Charlotte-area locations. Then they hired an independent third-party retail analytics firm to conduct a 14-week test. The goal? To compare the sales and labor impact of the SpaceGrid® II system against five control stores in the area, as well as for the chain’s remaining stores.
“We were confident in the design and flexibility of our grid system, which is quicker to stock and can be easily modified to accommodate new products,” says Stevenson.
The SpaceGrid® II system features pull-out trays that allow for easy restocking, without the need for reaching or fixing wayward bags. The grid mounting system and adjustable tray widths also offer flexibility to re-configure the display for new products. And the unique tray design helps maintain proper air flow and temperature distribution, without cramping or crushing the product.
The results
The test yielded some impressive results, both in terms of increased sales as well as reduced labor for the five test stores.
Test store sales outperformed control stores by
5.29% |
Test store sales outperformed all chain stores by 9.51% |
Stock rotation time in test stores decreased by
14.4 minutes |
“Our client was blown away by the appearance of the product, and how much better it looked in our display, says Stevenson. “They loved the overall cleanliness and consumer-friendly design, and the ability to add additional product facings.”
The stellar results have helped to pave the way for a growing relationship with this grocer. RSS is now on a short list of preferred display vendors for the supermarket, and they’ve begun work on some new custom display solutions for other areas of the store as well.
“Ultimately, supermarkets are trying to answer one question: ‘In a limited amount of space, how do we maximize our product exposure?’”, says Stevenson. “Products like our SpaceGrid® II system are perfect for maximizing SKUs and for driving incremental sales with evolving product lines.”
Looking for a retail display solution that drives exceptional shopping experiences for your store? Contact Retail Space Solutions today to find an option that’s right for you.