Using End Caps to Promote Clearance Merchandise
An end cap (also known as a Free Standing Display Unit, FSDU or gen-end) is a promotional display space located at the ends of aisles in a retail store. It is a highly visible area that provides an excellent platform for a brand to increase visibility and promote new products and offers.
The end caps are also popularly used to promote clearance merchandise. Many retailers also group all Clearance items together on the same end cap to make it easier for shoppers to find the products they are looking for. In addition to promoting new products, end caps are a great place to showcase your company's special offers or rewards programs. Many consumers are drawn to products that have a limited availability or time sensitivity. This is especially true for seasonal or limited-time offerings. This is why end caps are so effective at generating impulse purchases.
Merchandise on an end cap is more likely to sell-through than merchandise placed on the regular aisle shelves. This is because customers who walk past the end cap will notice and take a closer look at the product.
When merchandising an end cap, it is important to use a theme and keep in mind your customer base. You want to pique the consumer's curiosity and make them ask, "What is this?" For example, if you are featuring a brewing device on an end cap in the coffee and tea aisle, it is a good idea to also include mugs or other coordinating items. This way, the consumer will feel like they are getting a special deal because the product is on an end cap.
End caps can also be a good opportunity to cross-merchandise. For instance, if you are featuring boxed stuffing mix, canned cranberry sauce and pumpkin pie filling on an end cap at Thanksgiving, you may want to include tomato sauce, olive oil and spices. Similarly, if you are featuring pool noodles and beach balls on an end cap in summer, you might want to also include some water toys or winter gear.
Another key factor in an end cap's effectiveness is location. Ideally, they should be situated near entrances or at intersections of aisles to maximize visibility. This will draw the attention of both passing shoppers and those who are actively shopping the category aisle. In fact, a recent study by Shoppermotion found that 72% of shoppers interacted with an end cap before proceeding down the aisle.
When analyzing an effective end cap, it is critical to consider the 5 W's of marketing: who, what, when, where and why. While the answers to these questions can be subjective, some of the common elements that are identified in an effective end cap include eye-catching colors, messaging that is simple and clear, vertical structure and lighting. Take a look around the next time you are at your local grocery store and see what makes that particular end cap stand out. Then think about how you could apply those same principles to your own displays.
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