More in the Basket: How a Grocery Store Increased Items Purchased by 10% in 90 Days

More in the Basket: How a Grocery Store Increased Items Purchased by 10% in 90 Days

Introduction

In the retail industry, particularly for grocery stores, increasing the number of items purchased per transaction is a powerful way to boost revenue without needing to attract new customers. By encouraging existing customers to buy more during each visit, businesses can significantly enhance their profitability. This case study explores how a small grocery store successfully increased the average number of items purchased per transaction by 10% over 90 days. By implementing cross-promotion strategies, in-store sampling, and customer engagement tools like shopping lists, the store was able to drive higher sales volume and improve customer satisfaction.

Background

The grocery store, a family-owned business located in a suburban neighborhood, had a loyal customer base but faced stiff competition from larger supermarkets and online grocery services. Although the store maintained steady foot traffic, management realized that customers were often purchasing only a few items per visit, limiting the store’s revenue potential. To address this, the store’s management team set a goal to increase the average number of items purchased per transaction by 10% within 90 days.

Strategies Implemented

To achieve this goal, the grocery store implemented a three-part strategy: cross-promotion of related products, in-store sampling of new and seasonal items, and the introduction of weekly shopping lists that encouraged customers to purchase more. These strategies were designed to make it easier for customers to discover new products, see the value in related items, and plan their purchases more effectively.

1. Cross-Promotion of Related Products

Cross-promotion is a proven strategy in retail that involves displaying related products together to encourage customers to purchase more items that complement each other. The grocery store decided to implement cross-promotion techniques throughout the store to increase the average basket size.

• Strategic Product Placement: The store rearranged its product displays to place complementary items together. For example, pasta was displayed alongside sauces, cheese, and garlic bread, while salad greens were placed near salad dressings, croutons, and pre-cooked chicken strips. These displays made it easier for customers to see how these products could be used together, prompting them to buy more items.

• Promotional Signage: The store used clear and attractive signage to highlight the cross-promoted items, with suggestions like “Make It a Meal!” and “Perfect Pairings.” These signs provided ideas for complete meals or snacks that customers could easily prepare, making them more likely to add the suggested items to their carts.

• Bundle Discounts: To further incentivize purchases, the store introduced bundle discounts for items that were commonly bought together. For example, customers could receive a discount when buying a bottle of wine with a cheese platter or when purchasing a set of ingredients for a specific recipe.

These cross-promotion efforts helped the store increase the visibility of related products and encouraged customers to purchase more items during each visit.

2. In-Store Sampling

In-store sampling is an effective way to introduce customers to new or seasonal products, encouraging them to purchase items they might not have considered otherwise. The grocery store implemented a regular schedule of in-store sampling events to drive product awareness and sales.

• Sampling Stations: The store set up sampling stations in high-traffic areas, such as near the entrance or along popular aisles. These stations featured new, seasonal, or promotional items, giving customers the opportunity to taste or try products before making a purchase.

• Featured Products: The store focused on sampling items that were either new to the store, seasonal specialties, or high-margin products. For example, during the fall, the store featured samples of pumpkin spice-flavored products, while in the summer, fresh fruits and specialty beverages were offered.

• Promotional Offers: To further encourage purchases, the store offered discounts on the sampled products for customers who decided to buy them immediately after trying them. For example, customers who sampled a new brand of yogurt might receive a coupon for a discount on their purchase of that product.

The in-store sampling events created an engaging shopping experience for customers, increasing the likelihood that they would add additional items to their carts.

3. Introduction of Weekly Shopping Lists

To help customers plan their purchases and discover new products, the grocery store introduced weekly shopping lists and meal plans. These lists were designed to encourage customers to buy a variety of items and take advantage of the store’s full range of products.

• Curated Shopping Lists: The store created curated shopping lists that were available both in-store and online. These lists featured a selection of items needed to prepare specific meals or snacks, such as a “Taco Tuesday” list that included tortillas, ground beef, salsa, cheese, and guacamole. Each list was designed to guide customers through the store, ensuring they picked up all the necessary ingredients.

• Meal Plans and Recipes: In addition to shopping lists, the store offered meal plans and recipes that highlighted a week’s worth of meals, all based on items available in the store. These meal plans were featured in weekly flyers, on the store’s website, and through social media channels.

• In-Store Promotion: The store promoted the shopping lists and meal plans through in-store displays, including endcaps and special sections dedicated to the featured products. These displays made it easy for customers to find and purchase all the items on the list.

By providing customers with easy-to-follow shopping lists and meal plans, the store encouraged them to purchase a wider variety of items and make larger purchases during each visit.

90-Day Action Plan

To ensure the successful implementation of these strategies, the grocery store developed a detailed 90-day action plan. This plan was divided into specific phases, each with clearly defined objectives and tasks.

Phase 1: Days 1-10 – Planning and Initial Implementation

• Cross-Promotion: Identify key product pairings and design the new store layout to highlight these items together. Create promotional signage and bundle discount offers.

• In-Store Sampling: Develop a schedule of in-store sampling events, selecting high-margin or seasonal products to feature. Set up sampling stations in high-traffic areas.

• Shopping Lists: Create weekly shopping lists and meal plans, ensuring they are aligned with current inventory and promotional products. Design promotional materials for in-store and online distribution.

Phase 2: Days 11-30 – Rollout and Early Monitoring

• Cross-Promotion: Implement the new product displays and begin promoting the bundle discounts. Monitor customer responses and adjust product placements as needed.

• In-Store Sampling: Launch the first series of sampling events. Track customer engagement and sales of sampled products.

• Shopping Lists: Distribute the first weekly shopping lists and meal plans. Promote them through in-store displays, flyers, and social media. Monitor customer usage and feedback.

Phase 3: Days 31-60 – Full Implementation and Adjustment

• Cross-Promotion: Continue to refine product pairings based on sales data and customer feedback. Introduce new bundle offers for different product categories.

• In-Store Sampling: Expand the sampling program to include additional products and increase the frequency of events. Continue to monitor the impact on sales and adjust as needed.

• Shopping Lists: Gather customer feedback on the shopping lists and meal plans. Make any necessary adjustments to improve their effectiveness and appeal.

Phase 4: Days 61-90 – Evaluation and Continuous Improvement

• Cross-Promotion: Evaluate the overall impact of cross-promotion on sales and the average number of items purchased per transaction. Continue to optimize product displays and promotions.

• In-Store Sampling: Assess the success of the sampling program in driving sales and customer engagement. Consider expanding the program to feature more products or partner with suppliers for co-branded events.

• Shopping Lists: Review the effectiveness of the shopping lists and meal plans in increasing basket size. Continue to develop new lists and recipes based on customer preferences and seasonal trends.

Budget Overview

• Cross-Promotion: $300 for promotional signage and bundle discount materials

• In-Store Sampling: $400 for sampling products, staffing, and promotional offers

• Shopping Lists: $200 for design and printing of shopping lists and meal plans

Total Budget: $900

Results

The grocery store saw significant improvements in sales volume and customer engagement within the 90-day period:

• Increase in Items Purchased: The store achieved a 10% increase in the average number of items purchased per transaction, driven primarily by the success of cross-promotion and in-store sampling efforts.

• Sales Growth: The cross-promotion and sampling strategies led to a 12% increase in overall sales, as customers purchased more items per visit and were more likely to try new products.

• Customer Engagement: The introduction of weekly shopping lists and meal plans resulted in positive customer feedback and higher engagement, with many customers reporting that the lists made their shopping experience easier and more enjoyable.

• Repeat Business: The store also saw an increase in repeat business, as customers who participated in the sampling events and used the shopping lists were more likely to return for future purchases.

Conclusion

This case study demonstrates the significant impact that strategic merchandising and customer engagement can have on a retail business’s sales performance. By focusing on cross-promotion, in-store sampling, and providing curated shopping lists, the grocery store was able to increase the average number of items purchased per transaction by 10% in just 90 days.

For small businesses in the retail sector, particularly grocery stores, encouraging customers to purchase more items during each visit is a critical strategy for boosting revenue and maintaining competitiveness. This case study highlights the importance of making shopping easier and more enjoyable for customers, whether through strategic product placement, engaging in-store experiences, or helpful shopping tools.

The success of this grocery store underscores the value of a proactive approach to sales and customer engagement