Amy Hildrith Operations Manager, ALFA Brands Inc The confectionery and fine foods category, in North America, typically manages to capture around 8% to 9% of sales. In general, we find that the retailers allocate adequate and comparable floor space to this category, as well as strategic locations for displays and promotional areas. Effectively allocating shelf space to a brand is important, and it requires a great deal of consideration by the retailer, as many factors come into play, such as the productivity of the allocated space, inventory turns, displays/merchandising fixtures, and how overall store sales will be affected. Obviously, retailers give more space to those brands that contribute more to the bottom line. Strategic shelf location and displays increase visibility and therefore sales of a brand within a store; it goes without saying that price incentive promotion has the most positive effect on store sales. Consumers seem to purchase greater quantities when there is a price discount on multiple unitsbased offers, as confectionery purchases often occur on impulse and convenience. Also, a very large percentage of consumers are motivated by promotions and discounts, and in conjunction with tastings, sales would significantly increase. Merchandising confectionery in prominent locations such as end aisles or the front of the store encourages people to buy more than they intended to. Shoppers are looking for a deal and value, so promotional activities such as price discounts on volume-based offers that are straightforward for the customer will drive sales and help maximize the number of items in their basket.
Sharbel Barhoush Head of Corporate, Patchi Chocolate and confectionery brands have a very wide range of products and offerings for travelers and are very promotionallydriven, but due to their relatively lower contribution to total travel retail sales compared to perfumes and cosmetics and tobacco and spirits, they donâ€™t get the same attention or space as the rest. The other categories have much higher marketing budgets allocated to their travel retail division, which gives them stronger leverage over the others, and retailers tend to support them more.
Nelly Sannwald Global Travel Retail Manager, Leonidas Some retailers are resistant to the appeal of confectionery due to its limited margins compared to high-end perfumes, for example. But the volumes are impressive and we know that confectionery is a great footfall driver in-store with high rates of impulse purchase. Most retailers have the vision to see this and position confectionery accordingly.
www.dutyfreemag.com CONFECTIONERY AND FINE FOODS