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Are Retail Shelves more Important than Advertising?

Ryan Willis

While the online world has opened up a huge range of opportunities, it has also managed to make life a lot more difficult for some retailers. It was once the case that a marketing budget was either spent on advertising in traditional media like newspapers, magazines or television, or on improving the environment in-store. Now retailers have to spread that same budget between organic search, paid ads, social media and more.

With marketers spending much of their time talking about cost per click, conversion rates and other aspects of modern advertising, what proportion of their resources do they typically invest in their retail shelves? We’ll tell you: not enough. With all the time they’re dedicating to other channels, the one area that many retailers are overlooking has been shown to have the biggest impact on their customers.

The changing tide of promotional spend

Despite their focus on digital and offline advertising, recent trends have nevertheless shown that retailers are now starting to increase their in-store expenditure in the hope of grabbing customers at the point-of-purchase with sophisticated shelf management and store measurement tools.

It’s well known that an increase in total shelf space with the addition of end-of-aisle displays can have a positive impact on brand sales, but there’s also evidence to suggest that simple measures like more shelf facings, different shelf positions and even the type of display can have a positive impact on sales.

Five reasons why quality shelves are more important than advertising

1. Unrivalled reach and targeting

Regardless of your product type or store location, the reach your retail shelving gives you outnumbers almost any other media type. There’s also nothing that can compete with the level of targeting your store shelves provide. While one in 100 consumers you reach by social media or television marketing might be aware of your brand, every consumer who sees your store shelves will have an interest in your brand.

2. Unbeatable relevance and placement

No other form of marketing gives you the chance to impact the consumer’s decision-making process right at the point of purchase. With other forms of advertising, the relevance and targeting of the placement can have a dramatic impact on the results. Get it wrong and you risk wasting a good chunk of your budget. Even if a prospective customer walks into your store by chance, your shelving strategy can still have an immediate and positive effect.

3. The enhanced visual appeal of your products

According to the author of Why We Buy, ‘‘two-thirds of the products we leave a supermarket with we had no intention of buying’’. There are a wide range of factors that influence buying behaviour, from the store’s layout to the way the products are displayed. Enhancing the shelf appeal is a proven way to propel retail sales.

4. Strategic placement of products in-store

The permanent, secondary and temporary placement of products using a range of retail shelving solutions can help you appeal to the consumer in the most impactful way. Many product categories have just one location in a store, but some products such as impulse purchases and snacks can benefit from a secondary store location. You can also use retail shelving to create temporary distribution points to disrupt the shopper and engage them in a new way.

5. Your results can be measured

Investing in retail shelving allows you to try products in different store locations and displayed in a range of ways. What’s more, measuring the impact your product placement has on sales will allow you to develop a better understanding of buyer behaviour and can inform the way products are displayed in your stores.

Don’t be the last one left on the shelf!

At Nabco, we have an array of stunning retail shelving solutions that allow you to showcase your products in the very best way. Take a look at our shelving ranges, request a brochure or get in touch to find out more.

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