Keep it simple, stupid. The famous principle that things work best if they are kept uncomplicated was first associated with the US navy in the early 1960s, but could equally be applied to areas of the retail trade.
A case in point is the household cleaning segment, where some in the industry believe over-complication has contributed to a stagnation of sales in recent times.
“The homecare category has been challenging over the past year, with volume flat to declining and value eroding,” says Sandeep Hegde, director for convenience and wholesale at manufacturer P&G. “We continue to see a change in the way people shop, with trips segmenting further and volume continuing to proliferate across all retailer channels. With too much choice across sizes and variants, shoppers are faced with confusion as to which products really offer them good value for money. These dynamics have been hindering homecare growth and the solution lies in stepping up the quality of the shopper experience and providing more clarity and product information at-shelf.”
Extensive innovation
His views are echoed by Nick Widdowson, merchandising and creative controller at Partners for Growth, the unbiased category advice service run by manufacturer Unilever. “The household category has seen extensive product innovation over recent years,” Widdowson says. “This has created important sales opportunities, but also – for many retailers – uncertainty about which products to stock and how to merchandise them, particularly where space is at a premium. Shelves of household products can be confusing, so it is important to have a well-laid-out fixture containing relevant products.”
Hegde says it is important for retailers to simplify their range and then focus on the top priorities within that range. “Focus on the best-selling SKUs within each category that deliver the best use experience,” he says. Partners for Growth likewise recommends concentrating on the leading names. “Big brands attract customers – they have seen them on TV or in the supermarket,” says Widdowson.
“Give more space to best-sellers than to speciality products. The best-sellers will sell fastest, avoiding money being tied up in products that gather dust.” P&G points out that best-selling brands – such as Fairy and Flash – act as “beacons” for the category, signalling their location to shoppers at a glance. It’s not all about brands, though. Duncan Hill, managing director at shelving specialist HL Display, says: “Staples are key, but stores should consider stocking a range of price-points within each sub-category – for example, well-known washing-up liquid brands alongside economy ranges.”
Simple layout
After range, the second key area to look at is visibility – retailers must make sure the household fixture is in the right place and is well signposted so shoppers can find it easily and so they know the store stocks homecare products. Says Hegde: “Strong visibility of household in-store is a key area that requires ongoing focus. We have seen a decline in homecare display in recent months as retailers prioritised other areas of the store. Research has shown us that if the shopper is not clearly faced with homecare display in-store, they are much less likely to actively consider a homecare purchase in that shopping mission. Better signage and education, along with a simplified line-up that focuses on the key SKUs, can drive overall category growth.” Widdowson says: “Make it easy for shoppers to find what they are looking for in-store, or they will leave empty-handed.”
The layout of the fixture is also vital when it comes to maintaining sales, says Hegde. “The guiding principle is to make it easier for the shopper to navigate and purchase, while maintaining the critical focus on range efficiency.”
Paper products
According to Unilever, shoppers find it easier to locate what they are looking for if products are arranged on shelf by room. Mattiew Debrandes, household category manager at Unilever, says: “Merchandising household cleaning products by the room they are used in helps shoppers to navigate the fixture and find what they need.” Hegde at P&G adds: “As the category is fairly complex, it pays to group products by room – for example, kitchen and bathroom – and by product task – for example, dishes and surfaces. This allow customers to find what they want easily. In terms of shelf positioning, wipes and cloths need to be near sprays; floor and carpet products should be located across the bottom shelf, and bin bags should be included on-fixture or nearby to encourage cross-purchasing.”
A further key adjacency is paper products, with household towels increasingly being used not only to mop up kitchen spillages but to help out with all sorts of home cleaning tasks, fuelled by high-profile TV advertising campaigns and enhanced product benefits. Top brands in the convenience sector include Fiesta, Regina, Nicky and Plenty, as well as own-brands such as Happy Shopper, Euroshopper and Best-one.
