Did you know that the checkout is a massive department representing $5.5B in retail sales and representing 1.0% of grocery retailer revenue? To ensure you are maximizing this lucrative opportunity, we are sharing the results of the 2010 Front End Focus study from Time Warner.
- The checkout should be managed as a distinct department/category with at least 83 linear feet stocked with 530 to 599 items.
- Front-end conversion should exceed 90%.
- Power categories are defined as products that are high impulse, frequently purchased and have high household penetration.
- Power categories are beverages, magazines, candy, gum, and mints, which represent 79% of sales and 81% of profits.
- Beverage coolers should be located on 80% or more of checkout lanes. Coolers should be located in-line on regular lanes to maximize checkout sales and profits on regular lanes (Checkout Performance Index 105).
- Magazines should be located on 100% of checkout lanes to maximize sales (Checkout Performance Index 107).
- Maximize checkout sales by placement of magazines both in-line and end-cap (Checkout Performance Index 114).
- Magazines should be allocated at least 24% of checkout space to maximize sales (Checkout Performance Index 102).
- Over-the-belt space productivity is maximized when magazines, gum, candy and general merchandise are merchandised in this area (Checkout Performance Index 103 versus an index of 96 when only gum/mints are available).
- Optimal magazine merchandising techniques differ by lane type (e.g. regular, express and self-scan).
The access the entire study, please visit Front-End Focus.