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New cash register zones by Nestlé increase sales of confectionery by more than 50 %
In the Czech Republic and Slovakia, Nestlé has been supplying cash register zones to retail stores. It bears related costs and also offers to such stores a significant increase of confectionery category sales, which reached 57 % in tests. We provided realizations of more than 300 cash register zones and plan to add other thousand zones by the end the next year. We supply mostly Coop stores.
The project, which we have realized with Nestlé Czech and Nestlé Slovakia, clearly shows that if the cash register zone is being modernized on the basis of current trends it could provide increased sales of the whole assortment category. This is a unique project as to its scope and speed of realization. The new equipment is being placed in Slovakia and in the Czech Republic and our most frequent client is the Coop retail chain. It is about a cash register sales system for confectionery and chewing gums, which is always customized exactly according to specifics and needs of each retail unit. We have started the production four months ago and more than 300 zones were installed already. By the end of the next year, we plan to re-equip other 1,000 cash registers. Its main material is metal and non-illuminated branded elements. A significant difference compared to the existing zones is their bigger capacity in terms of the number of types and quantity of products and their modernized lay-out. Its benefit is larger choice and also less frequent replenishment.
Confectionery has potential
The collected data from the Slovak market shows that confectionery represents the largest category in the segment of fast moving food goods with 11% share growing steadily by 1 % each year. For confectionery, there is typical high impulsivity, daily consumption and it is often bought as a gift or present. And just the high impulsive character predetermines confectionery to be displayed in a way that takes full advantage of its potential. 74 % of all shoppers, who brought confectionery, were planning such purchase. And 40 % of shoppers, who planned to buy confectionery, will make the purchase. However, a relatively large number of them (34 %) decides to purchase a concrete product just in the store. More than a quarter (26 %) of them purchased confectionery without any plan. “This means that we have a chance to influence up to 60 % shoppers directly in stores,” said Patrícia Borárošová, the Channel and Category Development Specialist Confectionery SK from Nestlé. Paying attention to the right equipment supporting this impulse is therefore clearly worthwhile.
The category grew by half
In order to put the final touch to a new cash register zone, it was first necessary to test it. Based on the sales data, the sales from this place had increased by 57 % after six months. “We could see a positive influence on confectionery from all suppliers, while a contribution for one item was 38.00 Euro on the average,” said Patrícia Borárošová. The measurement also shows that TOP 10 items generate up to 69 % of total sales.
Retailer does not have to deal with costs
Cash register zones were customized for each store and equipped with smaller impulse segments for cash register sales, larger segments placed in front of the cash register belt and also displays standing near self-service cash registers. We always installed an assembly that best matched the particular type of a store. “It is about utilizing the cash register zone as effectively as possible as we want to achieve the growth of the whole confectionery category,” said Patrícia Borárošová. Nestlé provides retailers with the following benefits: no costs arising from installation and service, quick assembly due to shelf variability and simple assembly. Thanks to the warehouse stock, we are able to install these zones the next day. This is supported by our system that combines communication and processes from measuring to installation.
Waiting must not be perceived negatively
In addition to a regular exposition in shelves or a secondary display, the cash register is another possibility how to offer goods to customers. “It is specific place in a store, through which basically all shoppers go, stop here, eventually wait and have some time to make their decisions. And most importantly, it can activate an impulse especially for an immediate consumption, to expand already filled shopping cart and at the same time, to make waiting more pleasant for shoppers and so to contribute to the whole shopping experience,” added Patrícia Borárošová.
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