At Do it Best market, praise for endcaps
A practical session designed to helped retailers make the most of their floor space taught Do it Best dealers several truisms about consumer habits. For instance, odd price points — such as $3.43 — create the perception that every possible penny has been slashed from the price; and most people walk to the right side of the store first.
But more importantly, the presentation by Do it Best’s Lyndsey Steffen, category management coordinator, shared the concept that endcaps sell up to 50% more than an adjoining aisle. It turns out that maximizing these sales is a blend of art and science.
"Product considered for an endcap needs to meet one of the following criteria: the product should evoke an emotional response from the customer, should be consumable or should be seasonally focused," Steffen said.
The three main types of endcaps are: 1) price perception, 2) theme and 3) vendor. The price perception endcap conveys to a customer that the store is a low price leader. It can be a single item or a collection of items all below a single low price point. Theme endcaps are collections of related items. And the vendor version is a collection of items from a single vendor.
According to Steffen, a single store should include all three varieties — ideally with price perception endcaps accounting for 45% of all endcaps; theme endcaps accounting for 40% and vendor endcaps accounting for the remaining 15%.
The presentation took place at the 2011 Do it Best May Market.
For fifth-straight year, Ace leads J.D. Power list
The J.D. Power and Associates 2011 U.S. Home Improvement Retailer Store Satisfaction Study ranked Ace Hardware highest in customer satisfaction among home improvement retail stores. It’s the fifth straight year for the recognition.
“Ace is a go-to resource in communities large and small throughout America, and our retailer-owned stores know how to deliver on the brand’s helpfulness promise,” said Ray Griffith, president and CEO of the Oak Brook, Ill.-based hardware co-op with some 4,500 stores. “We strive to make a positive impact on our customers and be the ‘helpful place’ they know and trust.”
The J.D. Power and Associates study is based on responses from more than 6,900 consumers who purchased home improvement products or services in the previous 12 months. Ace Hardware ranked highest among major retailers with an overall satisfaction index score of 786 on a 1,000-point scale. According to consumers, Ace performs particularly well in the staff and service and store facility categories.
The score is based on performance in five areas: merchandise, price, sales and promotions, staff and service, and store facility.
Past winners of Retailer of the Year
In 2011, Westlake Ace Hardware took top honors as Home Channel News "Retailer of the Year." The Lenexa, Kan.-based 88-store retail company has successfully planned and executed a customer service initiative and re-established its mission to serve the needs of project-oriented DIYers through a program called Project North Star.
Here are the recent HCN Retailers of the Year:
2010: Leeds, Ala.-based Marvin’s Building Materials and Home Centers
2009: Retail Partner of the Year: Memphis, Tenn.-based Orgill
2008: Mooresville, N.C.-based Lowe’s
2007: Brentwood, Tenn.-based Tractor Supply Co.
2006: Atlanta-based The Home Depot