Impulse Sales and Merchandising at the POS

While shopping lists are an essential part of any major food & grocery purchase, a significant part of the purchase decisions take place in-store. These are unplanned purchases often termed as impulse buys. The number of impulse buys looks even better for a brick and motor retailer, compared to ecommerce sites. According to a research by A.T. Kearney, 40 percent of consumers spend more money than they had planned in-stores, while only 25 percent reported online impulse shopping. To influence impulse buys retail stores wish to increase visibility for products. However, the traditional retail store owners feel challenged to implement such PoS visibility owing to space constraints.

The traditional retail formats have higher incidences of impulse purchases. However, impulse purchases at kirana stores function under different dynamics. Purely, because of lack of space and inability to customize by store/ consumer profile. It’s costly to print material, send a merchandiser and sometimes an auditor to cross check if the visibility indeed happened at store.


About 80% of FMCG retails sales takes place at the kirana stores. Adding more strength to PoS visibility at kirana stores is important to FMCG brands. A digitized PoS serves just that. It puts the traditional retailers at par with bigger stores and e-tail chains. An LED screen, audio visually showcasing product promotions can significantly impact the way products are promoted at PoS. It creates a digital real estate (shelf) and solves a space crunch problem. Placed at a strategic location within the kirana store, these screens can manage to instantly grab shopper attention and retain it for a considerable time period. The promotions carried out on these LED screens can be controlled by the kirana store owner, who can decide based on consumer insights and brand promotion compliance. Such screens have shown to be significantly impactful for low-priced products which are a good choice for impulse buys.

“Jo Dikhta hai woh bikhta hai” goes the saying and it is the ultimate sanctimonious truth for the FMCG retail industry. Adding the technology platform to a brand’s PoS merchandising can take its impact a notch higher up.The impact further bears an incremental advantage for kirana stores which accounts for the largest chunk of FMCG retail sales.

Brands and traditional retailers now need to include digital PoS marketing as an integral part of merchandising strategy and store sales. With the PoS merchandising going the digital route, marketing innovation is set to take a different route. The next level of evolution will perhaps be seen in-store, on-screen.

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