Aisle placements affect grocery sales, research shows

Nov 11, 2009

Supermarkets could increase their sales of related items, such as chips and soft drinks, by moving the items closer to each other in their stores, according to research by Ram Bezawada, assistant professor of marketing in the University at Buffalo School of Management.

" can benefit substantially by having better placement of items in their aisles," Bezawada says. His research shows that aisle placements can influence sales across product categories as much as other marketing variables, such as price or how an item is displayed.

In a study published in the Journal of Marketing, Bezawada and co-researchers attempted to determine the optimal placement of cross-category items to increase sales.

Using the cross-category items of chips and , the researchers found that stores placing the items facing each other in the same aisle increased weekly sales of those items by more than 9 percent. In contrast, moving the chips and soda one aisle away from each other resulted in a decrease in sales of nearly 1.5 percent.

Both retailers and consumers can benefit from better cross-category placements in stores, according to Bezawada. "The retailers benefit because their overall sales increase, and consumers benefit by having an easier shopping experience," he says. In addition, manufacturers who items in multiple categories (such as Pepsi Co., which produces both soft drinks and chips) could also see their sales rise.

Source: University at Buffalo (news : web)

Explore further: Narcissistic CEOs and financial performance

add to favorites email to friend print save as pdf

Related Stories

Grocery Retailers Need Not Fear 'Cherry Pickers'

Sep 19, 2007

"Extreme cherry pickers," grocery shoppers who buy only sale items and nothing else, do not harm retailer profits significantly as generally is believed, according to a forthcoming study in the Journal of ...

Pricing practices cost consumers

Apr 12, 2007

You may be paying more for that can of soup or loaf of bread, depending on whether they have an individual price sticker or not. A new study from the DeGroote School of Business finds grocery items individually ...

Item-Level Tagging with RFID Technology

May 17, 2007

Imagine shopping without money, sales clerks or even cash registers. All you have to do is walk in, find your items and walk out. In the not-so-distant future, special technology within retail stores may help ...

Study: Middle school students prefer soda

Oct 05, 2006

A Harvard School of Public Health study has found that children at Massachusetts's middle schools buy soda more often than other items from vending machines.

Recommended for you

Narcissistic CEOs and financial performance

7 hours ago

Narcissism, considered by some as the "dark side of the executive personality," may actually be a good thing when it comes to certain financial measures, with companies led by narcissistic CEOs outperforming those helmed ...

Drugmaker GSK slashes annual profits forecast

Jul 23, 2014

British drugmaker GlaxoSmithKline on Wednesday slashed its 2014 profits forecast as second-quarter earnings sank on the back of weak US trade, adverse currency moves and a Chinese bribery probe.

User comments : 0