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A bakery shelf holding an assortment of macarons with ClearGrip ticket molding on the shelf edge

The Value of Space Done Right

Acosta’s 2018 Shelf Management: The Value of Space Done Right reports “Only 3% of approximately 20,000 grocery items are purchased by the typical household over the course of a year”.

Shoppers report that more than half of their grocery buying decisions are made at the shelf, proving that influence in-store is crucial for brand success,” said John Clevenger, Senior Vice President/Managing Director, Strategic Advisors at Acosta.

Key findings from Acosta’s 2018 Shelf Management: The Value of Space Done Right include:

The Importance of Getting the Shelf Right

  • Manufacturers spend $100 billion annually on promotions, versus $300 million on shelf management, yet shelf management accounts for 66 percent of sales and 85 percent of profits.
  • While the industry has seen a decline in lift from promotional tactics over the past several years, "fixing the shelf" yields a 6 percent sales lift.
  • Fifty-five percent of shoppers decide which brand to buy in store, with common in-store purchasing decisions regarding spices/seasonings, cookies, meat marinades/rubs, chocolate candy and tuna.

Key Trends Affecting the Shelf

  • Private brands tend to get more shelf space than they deserve and are 11 percent over-spaced on average, which can have an adverse effect on productivity and out-of-stocks.
  • As the perimeter of the store continues to rise in popularity, many retailers have responded by shrinking center store to allocate more space to such sections as delis, prepared foods, organic foods and fresh produce.
  • Retailers have responded to the rise of ecommerce in various ways, among them providing grocery pickup services and offering less assortment in store and larger assortment online.

Is your shelf edge receiving the attention it deserves?

In a world where consumers are craving product information and driving product labeling regulations, it is more imperative than ever to have an in-store shelf edge labeling system that aligns with your brand and merchandising needs.

When it comes to nutritional and lifestyle friendly products, shoppers can be lost trying to find products that suit their needs. Be sure to retain your health-conscious shoppers before they shop elsewhere. Grocery shopping with specific dietary and lifestyle needs can be a confusing and frustrating experience for in-store shoppers. By providing them with in-store signage that caters to their needs, you are creating a positive emotional connection and an enjoyable shopping experience. Kostklip’s latest line of NutriTalkers™ are proven to bring attention to the products your customers didn’t know they wanted, creating impulse purchases along your shelf edge. According to a Grocery Manufacturers Association study shelf talkers increase the likelihood of a shopper to engage with a product on your shelf by 29%, resulting in purchases of items not on their list by 20% or more.

Is your shelf edge strategy providing the in-store messaging your health conscious customers are looking for?

Contact kostklip® to learn more about ShelfTalkers™ that will work with your in-store fixtures.

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