There is a fundamental thought process in business: Invest in your company and you will see a nice return. Unfortunately, it does not always work that way. There are no guarantees in today’s business climate, but in the micro market industry, there are some specific steps that operators can take to help ensure a solid ROI.
Choices matter
“We see certain choices that micro market operators make that absolutely result in a strong, quantifiable ROI,” said Steve Orlando, co-founder of Fixturelite, the industry’s leading supplier of micro market retail displays, equipment and design tools.
A better way than baskets
Orlando points to a simple example: shelving with merchandising systems instead of baskets in a micro market. “We're replacing 10 markets in a current project that have wire baskets on the wall, bottling company coolers and a discount food cooler,” he said. “That approach is going by the wayside. The incumbent is losing the account. We're going in with equipment and fixtures that are planned and branded.”
Wire baskets are one of the most disadvantageous choices an operator can make. “Using proper shelving means added inventory – more products to sell – increased selection, less windshield time,” said Orlando. “If that translates to 20 more sales a day, it can result in thousands of additional dollars per year.”
Product presentation
The presentation in a basket versus a shelf is often unappealing to the end user, and the space is underutilized. “Operators need to ask themselves some simple questions: Is my retail strategy making me money or costing me money? Are the retail tools that I have chosen out of expediency and ease of installation costing me revenue in the long run?” asked Orlando.
Use product pushers and dividers
Whether to use product pushers and lane dividers is another choice that operators need to make. “We are big believers in product pushers, and they are standard in all Fixturelite markets,” said Orlando. “Disheveled and disorganized products mean fewer sales.”
“Retail studies show that well-presented and well-organized products will result in increased sales – it’s that simple,” said Troy Geis, Orlando’s business partner at Fixturelite.
Lighting to make them linger longer
Lighting in a micro market is another key factor. “Are you lighting up your product or lighting up your customers?” asked Geis. “The only question is, what is your lighting doing for you? If the lighting in a micro market is not specifically drawing the customer's eyes to the product, if it's doing anything other than that, you're wasting electricity.”
No lighting at all
Geis said that he often sees micro markets that use no special lighting at all. “They think ambient lighting is fine, which it is not. Some treat a snack cabinet like a vending machine and put one super bright light bulb at the top, expecting it to light the whole cabinet. That doesn't work. There are others who put a circle of lights around because they just think they must light up the whole cabinet space. What they fail to understand is that the objective should be to light up the product, not the entire space,” he added.
According to retail consultant Lektron Branding Solutions, “Inside your retail store, the overall quality of your lighting directly impacts how enticing your products look.”
A study by Retail Customer Solutions suggests that the type of light retailers utilize in displays contribute to a sudden shopping itch. Shoppers are naturally drawn toward areas that are not just well-lit but also have contrasting light. Proper lighting attracts more wanderers and make them linger longer.
Go with the science
“There is a science associated with lighting,” said Geis. “The operators who work with Fixturelite enjoy a competitive advantage because we utilize proven retail techniques, such as enhanced lighting, to improve the customer experience, which results in increased sales.”
Make the right choice – quality and purpose over low cost expediency
“Choosing any of the micro market Collections offered by Fixturelite is a classic example of investing in your business intelligently,” said Orlando. “Whether you choose our most economical solution, our mid-priced solution, or our premium Executive collection, the result will be an outstanding customer experience and a better ROI.”
“The alternative – selecting a low-end micro market solution, minimal retail tools and an absence of lighting done the right way, is a choice that has a predictable result that we see all too often,” Orlando noted. “First, driven by a weak customer experience, sales are far less than they could be. Often, the account is lost to a Fixturelite operator who has made the right choices in retail technology and a sound investment in their micro market.”
Talk to us about making the right choices and enjoying a solid ROI. Visit https://fixturelite.com.
