July 10, 2015
July 10, 2015
Last year, POPAI and Quri released a major study on the implementation of secondary displays and their impact on sales in four different channels of trade: Food, Drug, Mass and Dollar.
Let’s highlight the most alarming results:
The study shows that 41% of stores audited had the planned – properly executed – display. Besides, for 17% of stores the display was present but “drastically different than planned. 42% of stores were absolutely non compliant. How bad is that? Let’s see how compliance impact sales to answer that question.
When displays were compliantly executed, promotions received a 90% sales lift. The presence of a compliantly executed display corresponds to 21% of these 90% sales lift (when 69% of it was attributable to pricing tactics). That’s big.
Well, this is a big issue but if professionals are aware of it that can be solved in the long term you would say. The thing is…they are NOT!
Indeed, POPAI polled the participating CPGs to see the current state of their expectations around secondary display compliance and the measuring of the ROI of the display. When asked “Does your company have a desired compliance rate around displays? If so, what was the rate?” , most of them think that compliance is very high (70%+), where in reality display implementation compliance was significantly lower (58%) !
In conclusion, industry perception on compliance and reality are not the same… Professionals are not fully aware of the level of non compliance in their stores leading them to think that their situation is okay when it could be way better.
This is good food for thought!