Study: Cross-Merchandising Drives Sales
A study by researchers at Texas A&M University confirms
the power of cross-merchandising to drive incremental product sales in a wide
variety or retail categories.
"In general, placement can lift the sales of different items," Venky
Shankar, professor of marketing at the Mays Business School at Texas A&M
University, told United Press International (UPI). "It’s
true across the board but the amount depends on categories."
A case in
point is the combination of chips and soft drinks. When displayed across from
one another, soft drink sales increased up to nine percent while chips remained
"If you are shopping for chips, you may remember you get thirsty when
you eat them, so you buy soda," Prof. Shankar told UPI. "But
if you stop at a gas station because you’re thirsty, you probably aren’t going
to buy chips."
The most surprising cross-merchandising result came from
the successful placement of disposable diapers near beer and wine, highlight
the fact that local preferences can be a bit peculiar.
(In a somewhat similar
vein, RetailWire came
across a photo of an intriguing pairing reportedly found in a Kroger store.
Concept in Cross Merchandising)
Discussion Questions: How developed are retail cross-merchandising programs?
Are there still significant upside opportunities associated with cross-merchandising
programs? Have you seen any odd pairings that work well?
- Consumer Corner: The latest shopping trend? Pairing items – United Press
- Interesting Concept in Cross Merchandising – RW PhotoBug/JAG’s Sport News