Making shelf layout really work for shoppers

©TNS 2012

Retail & Shopper

TNS Italia - February, 2012

Six rules for effective shelf layout

Align shelf structure Reduce search timeOrganize shelf to make

1 2 3

TNS approach: follow real shopper behaviour

Observing shopper and experiencing in the past 20 years of shopping analysis, we brought together the following insights:

©TNS 2012

Retail & Shopper

Group products to facilitate selection

Prioritise search needs on pack

2

Structure shelf for ‘Decided’ shoppers

4 5 6

Align shelf structure with shoppers’ search

Reduce search timeOrganize shelf to make shopping easier

1. Organizing the shelf to improve ease of shopping will increase sales

2,82

3

� Spending speed is critical for retailers : stores that sell faster sell more

Spend per minute

Buy T

ime

Slo

w

� Categories that convert faster convert better

©TNS 2013

Retail & Shopper

3

0,8

0,34

0,97

1,46

1,71

0

1

2

Average <£15 £15-25 £25-£35 £35-50 £50+

% Conversion to Purchase

Buy T

ime

Fast

Low High

Drawn from TNS UK Case Study

2. Align shelf structure with shoppers’ search to reduce search time

� Searching is a negative experience. The task of the shopper is de-selection

Eye tracking might tell us that the shopper scans 100 items on a typical shelf

Neuroscience tells us about the emotions experienced in selecting,

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Retail & Shopper

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experienced in selecting, remembering memories stored before

Actually, the shopper rejects 96 out of 100 items. Positive emotions are only experienced when they find a relevant product.

3. Reducing search time will increase category interaction

Pre: Redesigned to assist navigation Post: Search time shifted to selection time

In search mode, POS and other products effectively become invisible

Decrease in search time lead to more interaction and purchasing

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Retail & Shopper

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Drawn from TNS UK Skin Care Case Study

4. Building the shelf for ‘Decided’ shoppers will improve efficiency

Decided Open to influence

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Retail & Shopper

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More time in search

Priority: Structure

More time in selection

Priority: Product options

We only have one shelf, whose needs should be met?

4.1 Most shoppers have already decided what to buy

69% buy same brand as

last time*

45% buy same SKU*

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Retail & Shopper

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*Source: Average FMCG Category - Kantar World Panel large trips Source: TNS UK/In-store study

Supermarket confectionery:

66% decided brand

4.2 ‘Decided’ shoppers need a search-led structure

Majority needs met

Improves efficiency

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Retail & Shopper

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Improves efficiency

5. Grouping similar products helps ‘Open’ shoppers make a selection

Consumption need’s crucial.

Motivation/uspis key for

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Retail & Shopper

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is key for conversion

6. Prioritise search features in pack communication

Product features, important in the search process, must be visible at a glance

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Retail & Shopper

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� Use pack communication to assistthe search : if flavour is important in search: communicate via colour as well as text

So...

An effective shelf layout needs to achieve two things

A clear shelf hierarchyHelps shoppers find relevant products

Search Select

Recognizable groupingsHelps shoppers identify product options

©TNS 2013

Retail & Shopper

Search Select

Concluding

• A shopper-led shelf means shoppers buy faster, buy more and buy better. As a result, loyalty and satisfaction also improve

• Facilitation is paramount. Unless we make it easy to find products, attempts to influence shoppers will fail

©TNS 2013

Retail & Shopper

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Carolina GerenzaniRetail & Shopper Practice Lead

mobile +39.347.347.04.66@: carolina.gerenzani@tnsglobal.com