The dairy department generates superior returns: It's been determined that it can total 19% of store profit, using 3% of store space. A new report shows that an updated dairy aisle can increase dollar sales by 1.6% and dairy unit sales by 2% to 3%. By optimizing space and creating a more shopper-oriented rather than operations-driven department, retailers can maximize new product potential, improve cross-merchandising opportunities and drive significant growth in sales and profits.
Based on the findings of the report, “The Future of the Dairy Department is Now,” researchers created a list of eight best practices that should be part of any reinvention process:
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Establish a dairy department vs. just another aisle — Make it clear to the shopper when entering and leaving the department.
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Make the department easier to shop — Make it easier to move through this high-traffic department by eliminating elements that create congestion and bottlenecks.
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Utilize a broader array of methods to “personalize” the engagement of the shopper — Use kiosks, offer meal solutions or provide information about consumer benefits on danglers to slow the shopper down with useful and relevant information.
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Build stronger emotional connections leveraging health and wellness — Help shoppers better understand the role that dairy can play in living a healthier lifestyle for them and their families.
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Leverage more meaningful merchandising — Assist shoppers in locating the various categories more effectively, as categories often blur together in a long-running aisle format.
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Offer stronger freshness cues — Freshness guarantees, proper lighting, keeping the department looking and smelling fresh, and inviting signage all create shopper trust and engagement.
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Foster interaction and engagement — Change the dairy space from linear to three-dimensional.
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Inspire shoppers — To maintain shopper interest, consistently update messaging and solutions. Provide messaging that educates shoppers about new items and new usage occasions.
SOURCE: Excerpted from “The Future of the Dairy Department is Now!”, Dairy Management Inc., Kraft Foods, the Dannon Co.