Retail Display 101: Tips for effective Point of Purchase Displays

Christmas is coming soon and every retailer wants to take advantage of the holiday season. The good news is, you can optimise your store to increase sales because, According to a 2012 research by POPAI, 76% of buying decisions are made in-store.

The second piece of good news is that there is way more you can do rather than just reducing prices. Several researches revealed that retail displays are far more effective at increasing sales than price reduction.

THE RESEARCH

A study from OgilvyAction shows that out of the 29% of US shoppers that bought from categories of products they didn't plan to purchase:

• 24% were influenced by displays
• 18% were influenced by in-store demonstrations
• 17% were influenced by price promotions

Prices will always be an important factor to drive impulse buying but this research also indicates that retail displays and other store-promotions without a price reduction work very well too.

The study from POPAI analysed 7 million shopper interactions with major grocery chains. It highlighted which store displays are more effective at driving engagement:

• Floor stands such as freestanding display and dump bins 51%
• End caps 35%
• Power Wings / Side Kicks 3%

TIPS FOR CREATING AN EFFECTIVE RETAIL DISPLAY

DISPLAY BASICS

• Be aware of stock volume
• The promotional display needs to survive several hours without refilling it
• Keep the display full
• Change the product regularly
• Positioned it on a high volume traffic area of the store
• Focus on one specific category and one product type only (one brand and style of t-shirt but several colours)
• Must have proper signage
• Ensure it is safe
• Ensure your team know the products on display

DISPLAY DESIGN

BIG, COLOURFUL, SIMPLE and DIFFERENT

A research by POPAI shows that the design of a POP display is very important in driving sales. "The focus by many retailers on achieving uniformity of display in-store is potentially damaging - turning displays into just another standardised fixture". "The research clearly shows that if the same approach is applied too often, you no longer achieve impact," says Martin Kingdom, general director of PAPAI UK & Ireland

Create a theme

• Use colour to set the mood
• Use signage to tell the story

Create a focal point

• Where exactly do you want people to look?
• Then, where will the eyes travel?

Design a plan for your display layout and draw it on paper

• Arrange store display based on colour and form
• Create vertical and, or horizontal blocks

Create balance

• Dark colors appear heavier than light ones
• Add dark and big item at the bottom
• Add light items at the top

Add lighting

• Do not light the display from the top as it create shadows
• Light slightly from the side and at the front
• Light the display from more than one angle if possible

Make it different

• Use colour contrast
• Place the display in an unusual position in the store
• Use popular brands to attract shoppers

 

References
http://www.marketingcharts.com/wp/direct/3-in-4-grocery-purchase-decisions-being-made-in-store-22094/
http://www.retailsafari.com.au/wp-content/uploads/2013/09/POPAI-what-makes-a-point-of-sale-display-effective.pdf
http://adage.com/article/news/store-displays-effective-price-cuts/132767/
http://www.inspire.ca/articles/displays.htm