The Importance of Product Segregation and Location Planning When Shopfitting a SupermarketDecember 6, 2016
Today, groceries and retail shops are extremely competitive. And to be above your competitors, it is highly important that a business be unique and offer robust points of difference. For a successful business, there needs to be a strong emphasis on functional space and distinctive creativity in order to create more traffic and increase sales. Therefore, it is imperative that a supermarket location planning and product segregation when shopfitting. By implementing innovative displays you can transform the space and bring your products to life.
If you analyse any isle in most grocery stores such as the cereal aisle, you will find that items are well organised. As well, you can usually predict which items will be discontinued by where they are located and how they are prearranged.
Segmentation is a vital feature in all supermarkets, especially since so many products are offered. By and large, most people are overwhelmed with the numerous options. As well, many want to go directly to items that they need and quickly finish shopping. So when products are not organised and segmented, customers will often go somewhere else especially if they are in a hurry.
A well segmented aisle will have the different brands separated from one another. There should also be special sections such as healthy or gluten-free products. Moreover, the aisle should be separated into categories. For example, a cereal aisle should have the hot cereals separated from the cold.
Benefits of Segmentation
Market segmentation divides the market up into different types or segments so that a supermarket is able to target their products to the appropriate customers more effectively. Some of the benefits of segmentation include a better customer experience in:
- Price differentials
- Quantity and quality
- Finding what they want
- Media advertisement specials
The store or location plan is a vital point in the development of good marketing. Location planning is comprised of both product and merchandise hierarchy that is detailed to each grocery location. The store planner is for keeping track of sales growth and predicted sales. And because most sales in a supermarket are large, it is vital to keep a constant and accurate store planner. Since the developing and implementation of a store plan is immense, group committees can be formed to help simplify and expedite the process.
A store plan also involves inventory and margins. The gross margins are divided into categories for simplicity and ease. The plan can also include full value sales and marked down products.
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