Learn about:
- What end cap displays are
- Why vendors might invest in an end cap display
- The best practices for using end caps
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One of the most difficult aspects of being a supplier for a major retailer is making sure that your products are seen by more customers than your competitor’s products. A method relied on by many suppliers is to display their products in end caps, which tend to attract more attention than products displayed in aisles.
So, as a supplier, what are the benefits in investing in end cap displays, and what are the best practices associated with them?
What Is an End Cap?
In the simplest definition, end caps—also known as Free Standing Display Units (FSDUs)—are displays for products placed at the end of an aisle. Studies have shown that items placed at the end of an aisle tend to sell through quicker than in-aisle units.
Typically, retailers lease end cap space directly to a brand or supplier. The brand or supplier is then responsible for stocking products, as well as creating and maintaining the end-cap displays. In some cases, depending on their agreements with the suppliers, the retailer stocks and manages the end-cap displays.
What Are the Benefits of End Caps?
Promoting products through end caps rather than just in-aisle displays can have numerous advantages for a supplier’s business. Below are some of the most common and impactful benefits of investing in end cap displays:
Increased Customer Attention
The end of an aisle in a store typically gets the most traffic, as customers tend to walk past the ends of every aisle on the way in and out of the store. As a result, items in end cap displays typically get more eyes—and therefore more attention from consumers.
Due to the increased attention, products in end cap displays tend to get the maximum exposure possible in a retail store. As a result, vendors often highlight their promotional or seasonal items in end cap displays. This allows the regular rotation of items through the end cap—thus increasing the visibility of temporary products—while also encouraging traffic around items with current demand.
Convenient Shopping Experience
Many suppliers use end cap displays to highlight their most popular products, thereby increasing the ease for consumers in finding desirable items. Streamlining the purchasing process is generally a benefit for a vendor’s business, as it encourages impulse purchasing while also reducing the amount of time in which consumers can reconsider what they’ve put in their carts.
When designed well, end cap displays reduce aisle clutter and improve the customer’s shopping flow. Typically, vendors want to minimize the number of items displayed on an end cap as much as they can without reducing available inventory, as this decreases distractions and keeps customers focused on their primary reasons for visiting the store.
Preview of the Aisle
End cap displays can often be used to preview the items that a brand or supplier has available in a particular store. Showcasing a vendor’s most desirable items in the end cap can encourage customers to investigate the rest of the aisle to see what else is available.
Additionally, end caps allow suppliers and retailers to save on aisle space, as moving items to end cap displays frees up shelving for other products. End caps give suppliers the opportunity to capture the attention of consumers who otherwise might have walked by the aisle altogether.
Related Reading: What is a Planogram, and How is it Used?
Best Practices for Successful End Cap Displays
Since demand for retail space is ever shifting, the benefits of end cap displays are lost when suppliers fail to capitalize on their advantages.
Below are some best practices for end cap displays, to help vendors ensure that they’re maximizing profit potential and minimizing risk.
1. Make sure end caps are fully stocked
Since end caps tend to receive more foot traffic than aisles, it’s important for vendors to make sure that their end cap displays are always stocked. Empty displays are both visually unappealing and encourage customers to purchase a competitor’s products if they can’t find what they’re looking for in the end cap.
2. Promote in-demand products
As end caps typically get more attention than other parts of the store, they’re a perfect place to promote new and in-demand products. Seasonal items are often displayed in end caps, as their seasonality allows for regular product rotation, responding to historical demand. Rotating the items available in the end caps based on demand can also re-engage customers who have seen the end cap before on previous visits to the retail location.
Related Reading: What is Demand Planning?
3. Design the end cap to increase product accessibility
It’s generally considered best practice to make sure that your end cap displays emphasize product visibility and accessibility. If a customer can’t see the prices, or they’re forced to reach too low or too high to grab the product, then they might become irritated, discouraging them from making a purchase.
Products should generally be placed toward the middle of the end cap, where it’s easiest for most people to reach. The uppermost and lowermost shelving is often reserved for storing additional product or advertising space.
Remember: For end caps, less is often more, so restricting the number of SKUs on the end cap can help to emphasize a supplier’s most desirable merchandise.
4. Prioritize placement and complementary items
The end cap’s positioning in a store often has a significant effect on customer response. When partnering with a retailer to place items in an end cap display, make sure to consider where in the store your product would draw the most attention before agreeing to the end cap placement.
Along with location, the theme of the end cap is also important in encouraging a positive customer response. It’s generally a good idea to place like items together, as this can encourage further sales. For instance, an end cap display showcasing toothpaste is more likely to encourage additional purchases of other toiletries, such as toothbrushes and deodorant, rather than unconnected items, such as car parts and electronics.
5. Consult sales reports
If possible, it’s generally a good idea to consult the store’s sales reports before committing to an end cap display. Historical sales data can help suppliers make informed decisions about which products are best placed on an end cap—to capitalize on the extra foot traffic—rather than in an aisle. Additionally, this sales data can help suppliers make decisions regarding end cap placement and effective signage and advertising.
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