Why is catalog product performing so well in supermarkets?
nneapolis, was quick to cite low price points as one reason. "That under-$10 price point seems to have a special importance to our customers," he said.
Retailers can further propel sales by using special signage, said Feiock. He doesn't believe advertising is as important to this category as impulse purchasing.
Setting up displays in the main section of the store can further draw customer attention to products. "The main thing is not to put those sell-through racks in the video-rental department. They have got to be out in the main traffic flow in a high-visibility area so people will have the opportunity to see it and think about it as they make those repeated trips through the grocery store," said Feiock.
Here shrink has to be addressed. However, it is less of a problem with the lower-priced sell-through products than with the hit new releases. One strategy is to put it out in the main store only during peak hours.
"We may pull it off the floor after 7:30 at night, for example, when we start to reduce our personnel as business slows down for the evening. We may only have it out there from 4 to 7:30 p.m. in many stores where we do have a theft problem. That is one thing we have done that seems to have helped," said Feiock.
