Hardware Retailing

MAY 2018

Hardware Retailing magazine is the pre-eminent how-to management magazine for small business owners and managers in the home improvement retailing industry.

Issue link: https://hardwareretailing.epubxp.com/i/971427

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Page 202 of 248

HARDWARE RETAILING | May 2018 190 Locations That Sell Y ou may have heard it from real estate agents. What sells a house? Location, location, location. It's not much different in your store. Where a product is placed on the salesfloor can have a big impact on how well it sells. Every product belongs to a department. But then there are the times when you switch it up. You pull products from the in-aisle places where they normally live and put them in a place where shoppers don't expect to see them. That's the power of cross-merchandising. Strategically locating certain products in multiple locations can dramatically increase sales. It's also a convenience for customers, as they can get more of what they need all in one place. It prompts an impulse sale at just the moment a customer is ready to buy. This strategy was a big success during the North American Retail Hardware Association's (NRHA) Merchandising for Profit Study, conducted in 2017. For example, the study found that a clipstrip of work gloves got a 25 percent boost in sales when merchandised near the garden tools, away from all of the other gloves. Putting that same clipstrip of gloves on an endcap with lawn chemicals boosted sales 177 percent. You can read the full study at TheRedT.com/merch-for-profit. Cross-merchandising works because you're presenting the right products in just the right places. You can use the strategy to encourage add-on sales, impulse buys and project purchases. You're getting into your customers' heads and asking, "If they're going to buy product A, wouldn't they want to buy product B as well?" To inspire you to find cross-merchandising opportunities in your own operation, Hardware Retailing editors gathered photos and insights from retailers who have effectively used this valuable strategy. Examine your store and think about how you can begin relocating merchandise for higher sales. By Jesse Carleton, jcarleton@nrha.org Merchandising: Cross Merchandising How Cross-Merchandising Leads to Add-on Sales

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