In the fast-paced world of retail, unplanned purchases are a critical driver of sales growth. According to research by POPAI, up to 76% of purchase decisions are made in-store, highlighting the significant impact that well-placed displays and effective merchandising can have on consumer behavior (Simon-Kucher). Superfridge units, with their 3-in-1 solution of display, merchandising, and advertising, are uniquely positioned to capitalize on these unplanned purchases, driving both incremental sales (sales generated by the placement of a particular product) and aggregate sales (overall sales growth across categories). Moreover, Superfridge units create a strong halo effect, boosting sales of related products and helping to move inventory efficiently. This article delves into the role of Superfridge in enhancing ROI (Return on Investment) and ROAS (Return on Advertising Spend) through these mechanisms, supported by insightful and specific statistics.
Unplanned purchases, often referred to as impulse buys, are a significant source of revenue for retailers. A study by the Journal of Marketing found that impulse purchases account for up to 40% of all supermarket spending(Emerald). These purchases are typically driven by strategic product placement and eye-catching displays that encourage shoppers to add additional items to their carts that they hadn’t originally intended to buy.
Superfridge units play directly into this dynamic by providing a dedicated space for products that are easy to see and access. Unlike traditional shelving, where products can get lost among the competition, Superfridge units ensure that featured items stand out, making it more likely that shoppers will notice and purchase them. The prominence of these displays, coupled with the compelling graphics used by Superfridge, taps into the psychological triggers that drive impulse buying, resulting in higher incremental sales.
Incremental sales refer to the additional revenue generated by strategically positioning products in high-visibility locations. Superfridge units excel at driving these sales by making products more attractive and accessible to shoppers. According to research by Nielsen, effective in-store displays can boost product sales by up to 30% (Hangar12). This increase in sales is largely due to the enhanced visibility and convenience offered by displays like Superfridge, which encourage shoppers to make additional purchases that they might not have considered otherwise.
Moreover, the dedicated merchandising approach of Superfridge units allows retailers to highlight specific products, whether they are new launches, seasonal items, or high-margin products. This targeted focus not only drives incremental sales for the featured items but also creates a ripple effect that can boost sales in related categories.
The halo effect refers to the phenomenon where promoting one product leads to increased sales of related products across the store. Superfridge units are particularly effective at generating this effect, as they are often placed in strategic locations where they can influence the sale of complementary items. For example, a Superfridge unit featuring a frozen pizza could also drive sales of related items like beverages, desserts, or even complementary groceries in nearby aisles.
Research supports the power of the halo effect in retail. According to a study by the Harvard Business Review, stores that create engaging displays and promote related products together can see an overall sales increase of up to 20% across the affected categories (Simon-Kucher). Superfridge units, by focusing shopper attention on high-visibility products, create a natural opportunity for this halo effect to take hold, driving aggregate sales and helping to move inventory more effectively.
Return on Investment (ROI) and Return on Advertising Spend (ROAS) are critical metrics for evaluating the effectiveness of any retail strategy. Superfridge units offer a compelling ROI by combining the benefits of increased incremental sales, aggregate sales growth through the halo effect, and efficient inventory management.
Given that in-store displays can increase product sales by up to 30%, and considering the additional 20% sales lift from the halo effect, the potential for a strong ROI is clear. For example, if a retailer invests in Superfridge units to promote a high-margin product with a typical retail markup of 50%, the combination of incremental and aggregate sales growth can lead to a substantial return on the initial investment(Hangar12)(Simon-Kucher).
Similarly, the ROAS for Superfridge units is highly favorable. Because the units use brand dollars rather than trade dollars, the investment is more directly tied to marketing and promotional budgets. This allows brands to allocate funds more effectively, ensuring that every dollar spent on Superfridge is contributing to a measurable increase in sales. With effective placement and promotion, Superfridge units can deliver a ROAS that far exceeds traditional in-store advertising methods, making them a smart investment for any retailer or CPG manufacturer.
Superfridge units are more than just display cases—they are a strategic tool for driving unplanned purchases, increasing incremental sales, and leveraging the halo effect to boost aggregate sales across the store. By focusing on the critical elements of display, advertising, and merchandising, and by operating on brand dollars rather than trade dollars, Superfridge units offer a unique value proposition that enhances ROI and ROAS for retailers and manufacturers alike.
In a retail environment where every sale counts, Superfridge connects the dots, transforming in-store opportunities into measurable success. By capitalizing on the power of unplanned purchases and the halo effect, Superfridge units help retailers not only meet but exceed their sales goals, ensuring that every product gets the visibility and attention it deserves.