“I WANT CANDY!” is the title of a 1965 hit song from a recording group named The Strangeloves. In 2020, it should be the mantra of many retailers. In retail, candy sales are responsible for generating nearly $35 billion in revenue each year, according to the National Confectioners Association (NCA).
Most commonly sold in convenience stores, candy provides retailers in any industry with a diverse category mix ideal for increasing impulse sales while displayed at the retail sales counter. This includes but is not limited to hard & soft candy, gum, mints, chocolate, and biscuits/wafers. In this article, we will outline how retailers can increase impulse sales this year with candy display shelving. Though no longer 1965, this should all be music to our ears.
Take Advantage of Impulse Areas of your Store
Defined in many different ways, impulse purchases are unplanned purchases by consumers based on triggering an emotion from either a promotional message or a retail display. Candy purchases made on impulse aren't functional or necessary in the consumers' lives, but because of instant self-gratification, appeal to the emotional side of consumers.
There are few areas within a store that retailers can capitalize on impulse candy sales. With the right candy display shelving, you can increase in-store profits by applying the principles below:
Maximizing merchandise space on end units and gondolas with candy shelves
- Utilizing POP displays
- Effectively displaying candy at retail sales counters
A terrific way to strategically take advantage of these high impulse areas of your store mentioned in the three principles above is by utilizing Handy Store Fixtures retail candy shelves.
These shelves allow retailers the flexibility to display nine candy shelves per 54” high shelving unit. As a retailer in the candy business, imagine how much product you can merchandise on your sales floor with nine shelves. We recommend “tiering” the candy display so that your customers can easily see the candy products your store provides.
Take Advantage of Seasonal Holidays
Which holiday is responsible for the most candy sales, Halloween or Easter?
Surprisingly, the correct answer is Easter. In an article from CNBC, when looking at candy sales per pound, Americans purchased over 146 million pounds of candy the week leading up to Easter Sunday. Halloween, Valentine’s Day, and Christmas round out the top 4 candy consumption holidays in the United States.
What does this all mean for retailers? Well, a lot if you want to maximize candy sales on these seasonal holidays. Did you know that research for Statista shows that 20% of Americans only purchase candy during a specific holiday? The question you have to ask yourself is: you are merchandising enough the weeks before these holidays?
If you’re an independent retailer, this is a valuable time to do some detective work and walk into a large chain store and see how they are displaying candy for the holidays. Are they using POP displays or end caps? How many feet of gondola do they allocate for holiday candy? After the holidays are over, how much do they markdown any excess inventory? These are all important questions that you will want to ask if you’re going to compete.
For example, CVS pharmacies do an outstanding job of prominently merchandising for these four previously mentioned holidays weeks, if not a month, ahead of the holiday. If your store is limited on space, you don’t need to allocate a full 12 foot run of gondola shelving on candy. Many times, a simple end unit with candy shelves and an eye-catching signage display are more than enough to help increase candy sales.
Take Advantage of Non-Chocolate Products
As a retailer, the first choice to stock might be chocolate candy packaged in either a bar, bag, or box. After all, for many, when you go to the store and make an impulse candy purchase, chances are very high that it will either be a Reese’s Peanut Butter Cup, Hershey’s bar, or a bag of M&M’s. According to research conducted in Candy Industry Magazine, in 2019, the U.S. chocolate market exceeded $14 billion.
Other candy categories should not be overlooked. With an increased number of consumers looking for a healthier yet delicious, sugar-free option, the gum category has seen an increase in sales over the past three years. Another candy group that has enjoyed a rise in revenue is hard candies. Similar to gum, hard candies not only continue to hold steady but provide customers with a sugar-free alternative.
Another advantage of utilizing the Handy Store Fixtures candy shelves is its versatility in varied sizes. They range from six to fourteen inches. Earlier in this article, we discussed the advantages of “tiering” your candy display shelves for maximum product visibility. Starting with a six-inch candy shelf at the top, these shelves are ideal for merchandising hard candy and gum so you can create a full candy retail display that features gum, hard candy, and chocolate all within the same gondola section.
Candy is a big business in the United States, and these are just some of the ways how retailers can increase candy sales. With the right retail displays, product mix, and close attention to holidays, retailers can take advantage of this product category. If you would like to speak to a store designer today and configure your store for more sales, please contact Handy Store Fixtures directly.