| By - Steve Davenport, Commercial Director, Bartuf Systems.
Friday, October 28, 2005
Retail display is an indispensable tool in achieving customer sales for any retailer irrespective of size or product, yet the profitable benefits of effective retail display still remain largely unappreciated in many specific categories and none more so than in the bakery sector. As the unmoving staple item of the UK diet it would be easy to assume that bread “sells itself”, a misconception which both independent and multiple retailers must avoid in the battle for customer spend.
With more than 96% household penetration in the UK, the bread and bakery products market is mature and saturated and at first glance opportunities for growth appear to be limited. However, alternative foods, product innovation and the pressure of an increasingly health conscious customer base ensures that competition between manufacturers and retailers remains constant and opportunities for competitive advantage are vital.
Retail display is proving to be a flexible weapon which is utilised differently and profitably by retailers large and small to grow sales in both specialist and staple products. As its importance has become more widely understood retail display has become a specialised discipline of its own with technological advancements in production and design techniques and improvements in the quality of materials. The result has been a range of sophisticated retail display solutions and retailers are now feeling the benefits of time saving “one fill” display solutions such as dump bins, freestanding counter front units for seasonal promotions, side gondola units for general promotions and multi purchases and a range of point of purchase display solutions to help maximise spend in store.
The bakery products market is worth in excess of three billion pounds and the current convenience and snack food culture lends itself perfectly to further growth in which retail display could play a major role. Just as there are marked differences in the way they approach bakery sales, independents and retailers must tailor their deployment of retail solutions in accordance to their own requirements. Many multiple retailers have a large display budget and, increasingly, boast an in store bakery. In contrast, independent retailers have a smaller budget for display and may be limited to a small “bake off” section in which they can prepare part frozen dough for sale or, no bakery facilities at all and are reliant on sales of pre-packaged bakery products.
The differing use of retail display by the multiple and the independent retailer is largely driven by their conflicting attitudes and methods to driving bakery sales. Multiple retailers have the space and budget to take advantage of the diversity of the current bakery market including the stock and manufacture of speciality, continental and ethnic breads, organic products, and bread replacements such as Tortillas and other “wraps”. In this way the multiple retailer is able to drive sales by displaying expanded product ranges, changing store lay out by utilising aisle end gondolas, promotional pockets and dump bins tied in with instore demonstrations and testers to promote new products. For the multiple, growth in the bakery sector is also largely dependent on convincing customers to “trade up” to premium quality products and by encouraging bulk purchases through the use of large capacity shelving, free standing gondolas and bespoke solutions containing related items to increase cross purchasing.
Despite his size the independent retailer is not without opportunities for growth in the bakery sector. With recent changes in lifestyles and a cultural shift which has seen more women in full time employment, the need for regular “top up” shopping and the growth of the snacking sector represents a golden opportunity for independents and convenience stores. In addition, the continuing popularity of the sandwich as the UK’s favourite lunchtime option offers independents the chance to capitalise on the opportunity to position bread as a fast food alternative. By merchandising bread products in close proximity to deli products, or by using a bespoke shelving system to enable bread products such as rolls and baguettes to be displayed alongside sandwich fillings, retailers can both increase bakery sales and create additional profits by encouraging multi-purchasing.
Bakery products such as bread and wrapped cakes are well suited to impulse purchases and, as 74% of purchase decisions take place instore, they represent an excellent opportunity for the independent retailer to maximise customer spend. A combination of free standing dump bins, side gondola units, promotional pockets and point of purchase display can be used to create instore “hot spots” to boost sales of “snack” bakery products such as wrapped cake bars and popular “morning goods” such as croissants, muffins and pastries. In contrast to the multiple the independent retailer is not tied to creating a uniform layout and has the opportunity to experiment with display and maximise space, injecting excitement in to their bakery displays to create additional sales.
There is huge potential for new product development in the bakery market, and as high value products regarded by the consumer as good value for money, bakery products will continue to be a source of profitable opportunity for the retailer. With higher disposable incomes and the growth of the “grab and go” snacking culture, the effective display and creative merchandising of all bakery products can not be underestimated by any retailer looking to gain competitive advantage.
In addition to making the retail environment more organised pop is also vital in creating in store excitement. The mobility and cost effectiveness of P-O-P allows retailers to do their own branding, customising displays to suit their customers and locality, making it a powerful merchandising tool around seasonal holidays. P-O-P display allows the retailer the freedom to change store layout at will which is a cost effective way of refreshing the look of the store and increasing customer traffic.
Essentially, P-O-P signage is an inexpensive, effective way to enhance sales and leave an impression on the customer. The most effective P-O-P should inform the customer and demonstrate and highlight the product within the context of the store. If this is done successfully P-O-P display can play a critical part of retail business success.
Established in 1995, The Bartuf Group incorporates Bartuf Systems; Bartuf Display; Bartuf Europe and Bartrux. Based in Holbeck, Leeds, the company now has a substantial national presence, a multimillion pound turnover and is recognised as a leader in the field of high quality display solutions.
Bartuf Systems is a small to medium sized business and boasts extensive experience in the design and manufacture of display solutions for both the UK and international markets.
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