It’s hard to believe that 2017 is already half-over. While the first six months of the year are filled with seasonal upticks in the retail world, nothing quite compares to the end-of-year holiday season. It’s never too early to start planning, and we’ve got fresh ideas for how you can spruce up your end caps to drive impulse buys and reap the rewards of high sales margins that they provide.
End Cap Definition
First, to clarify, an end cap is simply shelf space reserved for a product at the end of an aisle (the horizontal shelving within aisles is also known as gondolas). End caps may be referred to as aisle caps, shelf ends, or shelf caps. They are considered by many to be prime shelf real estate as they often yield high sales margins for the brands that are stocked there.
A standard end cap display is divided into three sections: top, middle (or core), and bottom. The top is traditionally reserved for eye-catching signage that “sets the tone” for the theme of the display. The middle/core is the “meat and potatoes” of the end cap where products are featured. The bottom is typically used for extra product stock.
Another notable aspect of end caps is that they are an excellent vehicle for cross-merchandising, as the products displayed here can complement those in the gondola. Equally advantageous, they offer the luxury of consumers’ undivided attention, since they aren’t surrounded by competing brands.
Retail aficionados recommend rotating end cap displays every one to two weeks, as they go stale quickly due to high foot traffic. It’s also advised to remove some product from a new display to make it appear like shoppers have already bought from it.
Master The Art of Endcaps
Get Merchandising Certified from Field Team Academy and learn behind-the-scenes tips to create best-in-class displays. Pre-register for free today!
Halloween
While the Halloween “season” is comparatively shorter than that of other autumn and winter holidays, it still drives serious dollars. The National Retail Federation estimated total Halloween spending in the U.S. for 2016 alone to be $8.4 billion.
Vendors can use end cap displays in the following ways to make the maximize sales during this scary season:
- Play with the element of fear and surprise associated with this holiday by using 3-D displays that “pop out” at shoppers
- Deviate from the standard orange and black color scheme and use other hues that evoke feelings of mystery such as deep purple, forest green, and slate grey.
- Surprise and delight consumers by featuring healthy options as an alternative to candy. Halloween is a great opportunity to showcase “spooky” produce that looks completely foreign to the average American consumer.
- Consider in what quantities your products will be purchased. For example, it might make sense to put individual candy bars in a bucket so shoppers can grab and go, whereas paper goods can be packaged as a complete set (i.e. plates, napkins, and utensils as a single unit).
- If your brand has absolutely nothing to contribute to the Halloween season, try focusing on autumn as a whole. Do you sell a pumpkin spice flavored product? Or perhaps you produce apparel that keeps consumers warm as temperatures drop.
Thanksgiving
While not every American participates in Halloween, almost all celebrate Thanksgiving. Suppliers in a much wider range of industries have an opportunity to show their stuff for this holiday, whether it be cooking utensils, food products, decorations, cleaning supplies, or anything that has to do with making and sharing a meal.
Suppliers can tailor retail end cap displays to the Thanksgiving season using the following tactics:
- Include Autumn motifs such as squashes, pumpkins, earth tones, and plaid.
- Any product centered around food or cooking can be advertised, even if it’s not a “traditional” Thanksgiving product, since a wide range of ethnic groups who want to honor their own cultural traditions will be celebrating the holiday.
- Take advantage of the shopping frenzy that is Black Friday and use wordage that describes your end cap as a “Black Friday Pre-Sale.”
- Add complimentary recipe cards to your display that incorporate the use of your products.
- Spin your product positioning to demonstrate how consumers can give thanks/give back this holiday seasoning by purchasing from your brand. For example, perhaps you manufacture cookware such as casserole dishes; Highlight how your dishes can be used to prepare a holiday meal at a local soup kitchen.
- Position your end cap as a “one-stop-shop” for Thanksgiving essentials (i.e. decor, tableware, ingredients for multiple dishes) by including an entire product family or multiple product families.
- Differentiate your brand by showing how it’s allergen-friendly (i.e. gluten-free, nut-free, dairy-free). Now is the time for these types of products to shine as the Thanksgiving holiday is one centered around food.
Christmas / December Holidays
It’s no secret that the most profitable winter holiday for suppliers is Christmas. Deloitte research suggested that holiday spending would actually exceed $1 trillion in 2016. Associated with gift giving, decorating, entertaining, meal sharing, and almsgiving (among other notions), the December holiday season requires some serious preparation as suppliers need a way to stand out amongst the noise.
Here’s how store end caps can appeal to consumers’ sentiments as they shop during the Christmas season:
- Position any small item as a “stocking stuffer.” Help consumers to visualize this concept by placing grab-and-go items inside stockings.
- Use messaging that explains a specific intangible value that your product provides and how that value can be received as a gift. For example, if you’re in the telecommunications space, mention how your brand helps users receive the “gift of communication.” Similarly, if you sell vitamins, emphasize that shoppers can give their loved ones the “gift of health.”
- Another messaging tactic your brand can try is positioning itself as a gift for “X” person in a consumer’s life. In other words, maybe your decorative hand mirror would make a great present for a hairdresser, or your monogrammed stationery a thoughtful gift for a teacher.
- While very cliche, holiday colors resonate with consumers and let them know that your display features something time-sensitive. Incorporate red, green, silver, and gold whenever possible.
- As with familiar colors, familiar objects inform consumers that your brand is participating in the holiday season. Set up displays to look like giant gift boxes or Christmas trees, or perhaps reserve the top section for a menorah.
- This time of year is often associated with making memories, so capitalize on this phenomenon with messaging such as “baby’s first Christmas.”
End Cap Merchandising: Final Thoughts
Fall and winter holidays are a prime opportunity to reach a wide audience in a consolidated period of time, whether your product is universal or niche. Regardless of what you sell, it’s likely that your brand has something to contribute to the holiday season and should be positioned as such. Don’t wait before it’s too late; now is the time to start budgeting, designing, and negotiating for your end-of-year end caps.