Rethinking Retail provides insights and practical suggestions you can implement to get more foot traffic and improve sales. And check out Rethinking Retail podcasts. Lasting no more than 5 minutes, you’ll get straight talk and great tips from industry pros who want you to sell more beer.
Shelf Sets for Today's Single-Serve Consumer
But there is another kind of single-serve consumer, one who craves variety, new flavors and a customized – make that personalized – assortment of adult beverages that six and 12-packs don’t offer. “Today’s legal age drinkers have a set of roughly 12 different kinds of alcoholic beverages in their personal repertoire,” explains Ray Faust, Chief Sales Officer for Heineken USA. “Today’s consumers are eager to experiment with new flavors and styles. They are willing to pay more for something unique. And cost per ounce doesn’t really matter, as long as they get the assortment they want. Single-serve, two-fers and 4-packs are the preferred packages for these consumers.”
“It’s all about the luxury of choice,” says Linda Ashbee, Origlio Beverage Off-premise District Manager for Delaware and Chester Counties. “The right assortment of single-serve and small format packages is an opportunity for retailers to drive impulse purchases. Plus, these packages make it easier to entice customers to trade-up to high margin items, which might be deemed too expensive in larger configurations.” “But to cash in on these opportunities, you have to ‘curate’ the right assortment for your store. What you don’t have to do is cram in everything under the sun. That just confuses and frustrates the customer,” says Jeff Stiles, Off-premise District Manager for Bucks and Montgomery Counties.
So what does the right assortment look like?
“There’s no one, simple answer to that question”, comments Bob Seeley, Off-premise District Manager for Philadelphia County. “But whatever the assortment is, it must be organized in some kind of logical order that makes sense to the customer. You want to make it simple for the customer to shop and choose. If you don’t do that, you can forget impulse buys and up-selling.”
Build Your Business with Single & Small Format Packages
To provide an organized and logical shopping experience, follow the suggested flow of product segments. The product assortment and space allocated to each segment should be based on your customer’s demands.
Remember: shoppers expect stores to fulfill ALL their needs, while still making it easy to shop.
• Easy to change assortment
• Singles & small format packages are very profitable
• 55% of all beer purchases are singles
• Single sales have increased 31% since 2012 across all price segments
• The single shopper is more loyal to a store than any other customer
If you maintain this template, it will be easy to change your display to take advantage of new products and seasonals.
Rethinking Retail Podcast Ep. 1: Shelf Sets