A “end cap” is a display that is located at the extreme end of a store aisle. An advantage in sales is something that many businesses hope to achieve via it.
It can be rented by a business establishment or by a manufacturer for use in a retail context. To know more information about end cap, let’s reading the below article.
What is an Endcap?
A retail marketing maxim is “location, location, location.” In any supermarket or department store, an endcap, or “hub,” at the end of an aisle is a heavily visited location.
Each aisle section contains four, and it is highly visible from the bustling outside shopping areas. Endcap placement is very competitive in the beverage and snack food markets.
Endcaps are generally used to display products with a higher profit margin, such as fizzy drinks, salty snacks, and limited-time specials. Quite often, it will have a restricted number of items that can be found in a nearby aisle.
If an item in a particular flavor or size is unavailable at an endcap, buyers may be urged to visit the main aisles.
The products on display is intended to inspire customers to wander the aisles and view the entire range of things on offer. The convenience of getting a drink or snack from the endcap may persuade people to shop that aisle even if they have no further intentions.
Because the endcap is a desirable location in any retail area, merchants often charge a premium for sellers who desire to display their items there.
At the place of display, there is usually some form of sign advertising a sale or promotional price, as well as some sort of special promotional literature.
Because the endcap product is isolated from other similar things, the client may wrongly feel the cost is cheap.
Customers who generally shop in the store’s exterior aisles for essentials may be enticed to wander into the processed food-filled center aisles by the endcap displays.
This is one of the reasons why some customers spend up to $45 for what a loaf of bread and a gallon of milk should have cost them.
Even if a consumer is only passing through the shop on their way from the back to the checkout, the endcap’s position in the main traffic area improves the possibility that they will make an impulse buy.
What Are Endcap Used For?
Merchandise put on a store’s end cap is meant to boost brand awareness as well as unit sales. It’s general known in the retail business that things positioned towards the end of an aisle sell faster than those placed in the center.
Shoppermotion observed one hundred consumers and how they interacted with end caps over the course of two weeks in 2019. According to the study’s findings, around 21% of customers engaged with the end cap before proceeding down the category aisle.
Despite this, more than 72% of clients connected with the end cap without ever entering the category aisle.
End cap placement boosts sales by attracting window shoppers and other customers who aren’t really shopping for what you’re selling.
How does the end cap feature improve client communication? For starters, because the objects on an end cap are separated, they catch the attention of more customers.
There are no other goods on the shelf in close proximity to it. Isolating the goods, its packaging, and its cost boosts their chances of being recognized.
Second, because the end cap is the first item a passive customer sees as they travel down the aisle, the things on it are more likely to be purchased.
Even if the client does not intend to purchase in the aisle where your product is generally located, end cap placement ensures that the customer will see your item and pricing when wandering along action alley.
What Types of Products Are Used in End Caps?
End cap space is great real estate, and many businesses use it to market a variety of items. These are the most common types of items discovered in this location:
Items for Store Promotions
It is feasible for suppliers to work with their retailer to push for end cap placement, and many retailers do so. Retailers frequently seek discounts, freebies, and bundled sets to offer on end caps to supplement company-wide promotions.
Retail events such as Baby Days, Tire and Auto Events, Back to School, and Spring Cleaning drive massive sales of consumables.
Displaying complementary items on end caps helps with promotion and offers up new cross-advertising opportunities.
New Launch Items
The end cap of an aisle is an excellent spot to display new items to passing consumers. It might be a fresh touch on a traditional meal or drink.
Cough drops that are also launching a liquid or gummy alternative would benefit from a first-time debut on an end cap since it would improve overall visibility and sales.
Local Assortment Items
Every retail establishment has end cap space at the end of each aisle, which means there are several opportunities for creativity. End cap displays at national large box stores are frequently transmitted to particular locales.
Several big chains, on the other hand, allow their local stores to offer some of their own items. On these end shelves, locally obtained items (sometimes known as “store choice” products) may be displayed.
Local variety end caps frequently feature products that promote local festivals and celebrations, as well as those created or supplied from within a certain region.
An end cap theme that contains everything a consumer may desire for a specific season is a great attention grabber.
Retailers are always coming up with new ways to cross-merchandise for non-traditional seasons, even while holidays provide great ideas for a variety of items on a shelf.
Summery end caps include marshmallows, chocolate, graham crackers, and citronella candles. On pharmacy end caps, first aid is grouped with cold and flu medications such as tissues, aspirin, and cough drops.
Some customers enjoy the “Clearance” concept. Bargain hunters and consumers trying to save money may naturally go to this part of the store or deliberately seek out the reduced products.
Some retailers make it easy for consumers to find what they’re searching for by grouping all Clearance products together on a single end cap (depending on the category).
Benefits of Endcap
Customers still prefer to shop at conventional stores. According to OgilvyAction, more than 40% of customers make their ultimate brand choice in-store.
End caps are a more efficient way to attract their attention before they even reach the aisle, while you still have a chance to close the deal. The inclusion of your goods in this area has several benefits:
Products exhibited at a store’s end cap have a higher turnover rate. End cap displays often enjoy more aesthetic leeway from retailers than shelf placement, due in part to the higher foot traffic that these areas receive.
These features pique the buyer’s interest and make them feel like they’re getting something more valuable.
Putting a variety of items on an end cap is an excellent way to cross-merchandise. More items will be added to the shopping cart if they are cross-marketed, whether by proposing a meal solution or displaying a laptop with a variety of extra accessories.
End caps are an excellent way to highlight things that shoppers may miss if they didn’t stroll down every aisle in the store. End caps can be used by retailers with strong food and health and beauty departments to bring attention to complementing departments or goods (i.e., motor oil, art supplies, hardware, etc.).
Endcap Best Practices
Follow these recommended practices if you want your end cap to attract more customers and create more income.
1. Setting a Single Price-Point
Price labeling is one of the most significant parts of a feature display that draws buyers’ attention. It is great practice to have all of the goods priced equally when setting up end cap displays.
Having a single price stated on the end cap, whether there is simply one product or multiple, helps underline the value of everything on show.
2. Pricing to Promote Multiple Purchases
End-cap displays have been found to improve sales, however convincing customers to buy more than one item may be difficult. In retail, the “2 for” rule is well-known, and it is frequently posted on end caps.
End caps should be labeled “2 for $10” rather than “$5 each” to enhance sales. This is viewed as a value-added service by the buyer. There’s no need to perplex a consumer by telling them that the price for one item is $5 if they don’t wish to buy two.
Keep in mind that a “2 for” pricing point must be easily understood. When assessing the value of a single thing is difficult, confusion and the loss of an item’s perceived worth as a bargain occur. In compared to “2 for $7.24,” “2 for $10” is a far more appealing offer.
3. Creating a Theme
All end caps do not need to have a single pricing point, but the best ones must have a constant pattern. End caps perform successfully when the goods on them compliment one another and act as a one-stop shop.
Chips, salsa, and cheese dip could all be bought in the same aisle of the grocery store. Another possibility is jars of peanut butter, jars of jelly, and pieces of bread.
End caps on automobiles may promote windshield ice scrapers and antifreeze. Seasonal end caps are a great place to get stocking stuffers, baking goods, and other fast solutions.
4. Entice the Customer Down the Aisle
Perhaps the final two items on the shelf are yours. The aisles on the left will have a bigger range of your items. The end cap is an effective marketing strategy since it encourages buyers to explore the rest of the aisle.
Packaging or end cap displays can be used to showcase your brand’s wider family of products. Promoting a single product on an end cap might lead to the distribution of discounts for similar items.
Offering things in reduced bundles is a clever way to entice customers to try your other products (i.e., shampoo packaged with a free sample of conditioner).
What Is The Purpose Of An End Cap Display And Who Is Responsible For Them?
To begin with, they highlight merchandise, enticing customers to enter your store or a certain sector. The items on exhibit may be for sale or displayed for other reasons. It is entirely up to you to make your decision. Second, the goal of an end cap display is to boost sales.
To take another comparison, it’s like performing marketing and sales at the same time. An end cap display is a wonderful technique to catch clients’ attention and persuade them to buy.
It is debatable who is in charge of supplying and maintaining your end cap displays.
If you are a store owner and your end cap was purchased by a seller, the vendor is liable. They’d have to maintain the inventory levels up and the place looking great all the time. The merchandiser for the firm, who represents the supplier in-store, may also be involved here.
If the items in your business, on the other hand, were chosen by corporate, it is your responsibility to ensure they are correctly stocked and priced.
Obviously, this does not exhaust your options. You and your provider might also co-manage the project.
One of your suppliers, for example, may purchase the space from you. However, it is conceivable that the supplier does not have enough staff to handle all of the jobs. You then come to an agreement.
The provider is required to furnish the inventory in compliance with the contract requirements. In exchange, you’d obtain access to the end cap display’s blueprint and the ability to use it.
Key Questions To Ask Yourself When Setting Up An Endcap
Before you can develop a successful end cap display for your store, you must first put yourself in the shoes of the customers. After all, if you want to win people over and persuade them to buy from you, you must put yourself in their shoes.
So, the next time you go shopping, whether at your own store or at a competitor’s, pay attention to the displays at the ends of the aisles. Which ones pique your attention the most? Consider why it has piqued your interest.
If you look at a variety of successful end caps from various merchants, you’ll notice that they all have a few essential traits. They employ a variety of aesthetic components, including color, clear communication, a vertical arrangement, and lighting. The following section will go over a few additional important aspects.
A number of questions are also considered. The same five questions are usually asked: “who,” “what,” “when,” “where,” and “why.”
The answer to this “who” question may involve more than one individual, depending on who is in control of the presentation. It was barely discussed earlier.
For example, the person in charge of setting up displays in your shop. The brand name and provider may also be mentioned.
The following query is about the exhibit’s content. What precisely will you be displaying? Unless the range is relatively limited in scope, a retailer is unlikely to stock every single item in it.
Brand An advertisement for mouthwash, for example, may be inserted. The collection has 10 distinct items, however only four of them are reduced. If this is the case, keeping everything in stock is not cost-effective. Instead, just keep things that are currently on sale on the end cap to call attention to them.
Putting more emphasis on these goods has the potential to increase interest in the rest of the range, thereby increasing overall sales.
If the item on display is the ‘what,’ then timing the replenishing is equally crucial. In that view, the importance of this investigation becomes evident. There is a seasonal allusion there.
Advertising air conditioning or fans in the midst of winter is, after all, a waste of time. It’s just as bad to try to push hot chocolate in the midst of summer. Promoting at the right time of year is a better tactic. A hot chocolate end cap marketing would be ideal for the approaching chilly season.
Now comes the “where” portion. When we ask where your screen is, we mean where it is physically. Where are the last stops? Because shelf real estate is so precious to your business, you can’t place a price on it. However, if it is not put to good use, knowledge is useless.
And no, we’re not referring about the obvious location at the end of a corridor. Instead, we’re speaking to the aisle.
End caps are meaningless if the categories around them don’t make sense.
The final question is simple, and we’ve already discussed it.
So, what’s the point of putting a display at the end of an aisle? For one simple reason: making customers happy increases sales.
It’s a moneymaker for whoever put up the end cap display. You’re losing potential income if you don’t have it in stock.
Key Elements Of Successful Endcap
1. They Keep A Theme In Mind
Sticking to a constant theme throughout is one of the most crucial parts of a great end cap display. That is true for everything in the retail industry. When examining your store’s displays and gondolas, put yourself in the position of a possible consumer.
What will catch their attention, is the question. They will remain longer in your business and may even spend more if you have a themed display. Meanwhile, a badly organized display with no unifying theme would appear to be thrown together because you didn’t know where else to place everything.
A pharmacy, for example, may load the gondola end with cold treatments. DIY oil change displays featuring all the tools and materials needed for the procedure might be set up at auto supply stores. Make your theme clear to the consumer; this will increase sales regardless of what it is.
2. They Showcase Your Branding
There are several branding potential on gondola end caps. A customer may browse your store looking for specific items or brand information.
Having customers glance about the store isn’t necessarily a bad thing, especially if it promotes other products. However, you do not want them to work without direction or become discouraged.
Emphasizing your brand with complementing items in an end cap display is a sure approach to get the attention of shoppers.
Consider a local craft shop that sells items in line with the current school calendar and a grocery store that has a s’mores end cap that is totally filled with store brand supplies.
End cap displays allow you to give customers a sneak glimpse at your whole inventory.
3. They Highlight New Products With Cross Merchandising
A new and fascinating product may be highlighted in a variety of ways, one of which is to place it in front of the shelf that stores goods in that category.
You may also experiment with in-store cross-merchandising. The first option is obvious, but the second is critical if you want to turn a profit. Furthermore, because you cross-merchandised it, it may get up in the shopping carts of people who weren’t even looking for that particular item.
If you offer coffees and teas from throughout the world, you could place your newest supply of locally roasted coffee beans in the same gondola run as your variety of brewing utensils and cups. It doesn’t matter if you have a shiny new coffee machine.
Place it near the end of the coffee and tea aisle, where customers will see it as they go through the store.
4. They Entice Shoppers Down Aisles
End cap displays that promote items from neighboring aisles are an advanced kind of nudge marketing. This explains why “cross-merchandising” is so successful.
Indeed, as previously said, aesthetics are critical to success. Customers can be persuaded to buy in an aisle they would not ordinarily visit by using the right color, appealing packaging, and well-designed display.
Furthermore, your end caps function as guideposts, advising shoppers about what to expect within each aisle. The average client does not spend much time window browsing. Every second they are in your store is an opportunity to make a positive first impression and complete a sale.
The phrase “endcap” refers to things that are stocked on a shelf in the very rear of a store. End caps, commonly referred to as features, are used to highlight limited-time discounts on items throughout the course of a campaign.
Merchandise positioned at the end cap of a store has been proven to move faster than equivalent things stocked on an aisle shelf.