By Kim Sharrah
Through a special arrangement, what follows is an excerpt of a current article from Convenience Store Decisions magazine presented here for discussion.
The convenience store front counter provides the perfect canvas to showcase a mix of hot new items and profitable impulse buys that will grab customers' attention. But experts agree that this area is among the most underutilized selling places in the entire store.
At Kum & Go stores in Iowa, a variety of different display vehicles are used to merchandise the front counter, keeping it neat and organized so that customers can easily select products. Margins can be high on timely items, such as movie-themed candy, or ones that carry popular subject matters, like a drink series lighter. It also helps that suppliers provide premium display sets that are specifically designed to maximize front counter space.
"A customer's impulse purchases are most often fueled by curiosity," said Dana Sump, marketing category manager for Kum & Go. "If a product appeals to the senses and is brightly colored, it has a better chance of selling."
Adam Wilson, president and owner of AJ Convenience in Florida tests out new items at the front counter about every two months to gather enough sales data to determine if the product is worth keeping for the long term.
"Some of the products at our front counter that start out as impulse buys can eventually transform into destination items," said Mr. Wilson. "For example, the liquid energy shots have become very popular and people are starting to specifically ask for them."
AJ Convenience also carries single-serve candy on the front counter. The candy's low-price points of 15 to 25 cents encourage customers to toss in several treats with their purchase.
Competitive pricing can make all the difference on the front counter for Fady Hanna, owner of First Choice in Florida. His store is one of four competing c-stores within a two-mile radius, and he always tries to stock the newest items with the lowest prices.
Mr. Hanna stocks items that people may forget to purchase if they weren't sitting in front of them at the checkout, such as gum and lighters. He also prescribes to the same philosophy as Kum & Go and AJ Convenience, that if an item isn't moving from the counter, it doesn't belong there.
"The front counter items should promote themselves," said Mr. Hanna. "The key to selling impulse items is the right product mix so that you have something for all your customers."
Discussion Questions: What are some key strategies and/or tactics to drive impulse buys at the front counter in convenience stores? What are some common mistakes there? Are traditional impulse purchase drivers still as important to convenience store front counter performance as they've been in the past?