2017 NACS Preview: Optimizing the Candy Aisle in C-Store

As the annual NACS Show draws closer, we continue to examine The Hershey Company’s consumer-driven insights and some of the top trends c-stores and operators can expect to see, hear and taste when they stop by Hershey’s booth (#4616) during the show. 

So far in our NACS preview series, we’ve discussed the opportunities that exist for c-store operators who embrace the power of sweet and salty snacks and lean into chocolate as a tremendous growth driver for the channel. Alongside product innovation, we are examining the intersection of our category with retail and technology trends to bring our retail partners solutions that push the convenience channel forward amidst retail’s rapidly evolving landscape.

While there’s no disputing that confection is an important category in c-store and shoppers are drawn to the candy aisle, this area of the store has earned a reputation as being one of the most difficult to shop. In fact, 76% of shoppers report being frustrated with cluttered planograms and another 25% report they’ve walked away from the aisle without making a purchase because they couldn’t find the product they wanted. These factors can quickly add up to missed opportunities in a category that accounts for 30% of all c-store snacking sales.

In contrast, we’ve observed that when shoppers enter the candy aisle in c-stores and effectively engage with the category, 72% of visits will result in a sale. So how can c-store operators optimize their store set and planograms to achieve this kind of engagement?  

OPTIMIZING FOR STOPABILITY & SHOPABILITY

Last year, Hershey introduced an optimized planogram that leveraged consumer insights and in-store tests to improve noticeability and assortment in the c-store confection aisle. We recommended a segmented approach designed to help shoppers more easily find the products they want, reduce frustration and make the aisle more enjoyable to shop.

In the layout and design, we advised c-store operators to vertically block packaging by brand and type. We next recommended that retailers block the aisle with chocolate king size bars leading chocolate standard bars, followed by non-chocolate confection. Mints and refreshment are arranged above all three of these categories, with mints leading the aisle, followed by gum bottle packs, followed by regular packs and fun gum. As previously mentioned in The Power of Reese’s in C-Store, positioning the recognizable Reese’s brand within the first four feet of the aisle is an effective way to draw shopper’s attention and invite them into the aisle. 

Most important to the success of this planogram is the positioning of a retailer’s top 20 most popular confectionery items in both king and standard sizes in the “strike zone” – the area of the aisle right below eye level and just below mints and refreshment: one of the most prominently viewed areas of the set. Positioning these high-velocity items allows retailers to put their best foot forward and make these important core items discoverable in the very best location of the store. 

By segmenting the aisle in this manner, customers were able to more easily find the product they wanted and c-store retailers were able to eliminate much of the frustration that could make the aisle so difficult to shop. When tested, this optimized planogram generated a lift in both standard and king size bar sales, and when implemented in store, retailers who executed the planogram exactly as recommended saw a 4% to 6% increase in sales of their high-velocity instant consumables.

Now, we are rolling these lessons and more out to a growing number of c-store retailers, all while expanding on the lessons learned from year one and evolving our recommendations to help further improve the stopping power and shopability of the aisle. One way we're achieving this goal in year two is through aisle signage that works alongside the vertical blocking of packages to help shoppers better navigate both king and standard sizes. We’ve already received positive feedback and observed strong results from retailers who have begun adding this signage into the optimized planogram.

We’ll continue to make these insights and best practices available to our retail partners – all with the understanding that you require recommendations catered to meet your individual needs. If you have questions about planogram optimization or other retail trends on the horizon for c-stores, our team of experts will be available at The Hershey Company’s booth (#4616) during the show. We welcome the opportunity to answer your questions and work alongside you to implement solutions that will win with your shoppers.