Supermarket chains are finding they can move more confectionery at the front end these days by taking advantage of a recent crop of cooperative merchandising efforts.
The front end -- especially the checkout area -- is a crucial opportunity for snaring impulse purchases, said retailers contacted by SN. More of them are paying closer attention to what candy items they sell there and how they merchandise them, said sources.
Manufacturer prepriced programs, an emphasis on king-size bars and multipriced promotions are a few of the tools chains have installed within the last year to increase volume and capture that extra impulse dollar.
"We find that candy is an extremely impulsive item; people make up their minds at the last minute at the front-end," said Bill Vitulli, vice president of government and community relations for A&P, Montvale, N.J. "So, we try to capitalize on candy bars being a strong impulsive item with dump displays at the front-end as well as well-packed checkstand racks. "And sometimes we put multiple prices on them, which induces people to buy more," Vitulli told SN.
Pat Robischon, store manager for Northwest Supermarkets, a four-store independent based in Sauk Centre, Minn., also noted his company makes good use of multipricing programs. It also promotes candy in its circular on a regular basis.
"We have candy in there every other week of some kind, whether it's single bars at two-for or three-for, or some other kind of candy," Robischon said.
Another avenue to increased front-end candy sales is that of prepriced products, which are popping up more and more, said the retailers contacted by SN.
Robischon of Northwest Supermarkets reported he also takes advantage of the prepriced products and that the prepricing programs continue to add to candy sales.
"The prepriced sells very well, as long as there's a profit in there for us -- which is the main thing," he said. "We always sell extra. We're still doing the regular business, as well as moving the extra product; and that's a plus. We also use a lot of shippers, a few of the king-size bars and things like that; therefore, we have a good variety of different candies around."
At Scolari's Warehouse Markets, Sparks, Nev., 40% of the candy bar mix is of the king-size variety, which brings in a higher register ring, said head grocery buyer Chuck Jones.
Jones said that popular merchandising techniques, such as front-end dump bins, are used to tie in with an ad. Jones, too, has noticed the availability of more prepriced products, but he explained that his company steers clear of that genre.
Tom Brawner, director of marketing for the 17-store Wuest's Inc., based in Sequin, Texas, concurred that prepriced candy products -- while truly effective in increasing sales -- may affect margins. "You're sacrificing margin, hoping to make it up in volume," said Brawner. "But, then again, you're using it as somewhat of a loss leader, as a draw."
