A study by researchers at Texas A&M University confirms the power of cross-merchandising to drive incremental product sales in a wide variety or retail categories.
"In general, placement can lift the sales of different items," Venky Shankar, professor of marketing at the Mays Business School at Texas A&M University, told United Press International (UPI). "It's true across the board but the amount depends on categories."
A case in point is the combination of chips and soft drinks. When displayed across from one another, soft drink sales increased up to nine percent while chips remained the same.
"If you are shopping for chips, you may remember you get thirsty when you eat them, so you buy soda," Prof. Shankar told UPI. "But if you stop at a gas station because you're thirsty, you probably aren't going to buy chips."
The most surprising cross-merchandising result came from the successful placement of disposable diapers near beer and wine, highlight the fact that local preferences can be a bit peculiar.
(In a somewhat similar vein, RetailWire came across a photo of an intriguing pairing reportedly found in a Kroger store. See: Interesting Concept in Cross Merchandising)
Discussion Questions: How developed are retail cross-merchandising programs? Are there still significant upside opportunities associated with cross-merchandising programs? Have you seen any odd pairings that work well?