Comparing two supermarket layouts: The effect of a middle aisle on basket size, spend, trip duration and endcap use

Abstract This paper aims to empirically establish the effectiveness of a supermarket layout with a middle aisle splitting all other aisles, compared to a ‘traditional’ layout (without a middle aisle). Two supermarkets in Australia were matched by size, turnover, population/location, and general layout, except that Store 2 had a middle aisle. The research aims to: (1) explore the shopper traffic entering and existing the middle aisle, and interaction with endcap promotions (which have effectively been doubled by the creation of the middle aisle in Store 2), and (2) compare the two stores based on basket size (in items and dollars) and trip duration. These are typical supermarket metrics, which might differ due to increased opportunities for impulse purchases from the extra endcap displays in the middle aisle. Despite the middle aisle, results show that all performance metrics are almost identical between the two stores on the overall level. However, the store containing the middle aisle sees a higher proportion of trips for under 15 items. Overall use of promotional ends of aisles is the same across both stores, meaning that the use of each endcap is effectively halved. This means that the presence of a middle aisle does not bring any additional value in terms of making the store easier or quicker to navigate. It may provide additional benefits to retailers in terms of giving more promotional space to manufacturers, at the expense of making each endcap half as likely to generate interest. Our additional analysis of the traffic flow near the endcaps suggests that, in most occasions, shoppers pass through the aisle as if there was no break. These results are useful insights to retailers considering remodeling an existing store and manufactures buying endcap space in a store with a middle aisle.

[1]  J. Hagberg,et al.  The digitalization of retailing: an exploratory framework , 2016 .

[2]  Aaron Smith and Monica Anderson,et al.  Online Shopping and E-Commerce , 2016 .

[3]  Jens Nordfält,et al.  In-store demonstrations as a promotion tool , 2013 .

[4]  Mehdi Mourali,et al.  The relationship between density perceptions and satisfaction in the retail setting: Mediation and moderation effects , 2016 .

[5]  Bill Page,et al.  Validating Bluetooth logging as metric for shopper behaviour studies , 2015 .

[6]  R. Kennedy,et al.  Retailers' and manufacturers' price-promotion decisions: Intuitive or evidence-based? , 2017 .

[7]  Robert Sommer,et al.  Mental Mapping of Two Supermarkets , 1982 .

[8]  L. Lockshin,et al.  Assessing the sales effectiveness of differently located endcaps in a supermarket , 2018, Journal of Retailing and Consumer Services.

[9]  Andrew Ehrenberg,et al.  Empirical Generalisations, Theory, and Method , 1995 .

[10]  John U. Farley,et al.  A Stochastic Model of Supermarket Traffic Flow , 1966, Oper. Res..

[11]  L. Lim,et al.  Relative effects of store traffic and customer traffic flow on shopper spending , 2010 .

[12]  Oliver Roll,et al.  Are your consumers variety seekers? The moderating impact on the effectiveness of free gift promotions vs. price discounts , 2017 .

[13]  R. Larson Core Principles for Supermarket Aisle Management , 2006 .

[14]  Bill Page,et al.  Fundamental patterns of in-store shopper behavior , 2017 .

[15]  Christie H. Paksoy,et al.  Assessing the Impact of Short-Term Supermarket Strategy Variables , 1982 .

[16]  C. Licoppe Merging mobile communication studies and urban research: Mobile locative media, “onscreen encounters” and the reshaping of the interaction order in public places , 2013 .

[17]  L. Lockshin,et al.  Parents and children in supermarkets: Incidence and influence , 2018 .

[18]  Susan Powell Mantel,et al.  Perceived Retail Crowding and Shopping Satisfaction: What Modifies This Relationship? , 2000 .

[19]  J. Ainsworth,et al.  Comfort in brick and mortar shopping experiences: Examining antecedents and consequences of comfortable retail experiences , 2017 .

[20]  Paco Underhill,et al.  Why We Buy: The Science of Shopping , 1999 .

[21]  Mehdi Mourali,et al.  The density–satisfaction relationship revisited: The role of scarcity and consumers affective reactions in a crowded retail situation , 2014 .

[22]  Valérie Renaudin,et al.  Estimation of Product Category Sales Responsiveness to Allocated Shelf Space , 1998 .

[23]  M. Chevalier Increase in Sales Due to In-Store Display , 1975 .

[24]  Pratik J. Parikh,et al.  The impact of rack layout on visual experience in a retail store , 2019, INFOR Inf. Syst. Oper. Res..

[25]  James J. Kellaris,et al.  Human versus spatial dimensions of crowding perceptions in retail environments: A note on their measurement and effect on shopper satisfaction , 1994 .

[26]  David J. Burns,et al.  Atmospherics and retail environments: the case of the “power aisle” , 1996 .

[27]  Alice E. Smith,et al.  Retail space design considering revenue and adjacencies using a racetrack aisle network , 2012 .

[28]  Serkan Altuntas A novel approach based on utility mining for store layout: a case study in a supermarket , 2017, Ind. Manag. Data Syst..

[29]  Erik Wästlund,et al.  Gamified in-store mobile marketing: The mixed effect of gamified point-of-purchase advertising , 2019, Journal of Retailing and Consumer Services.

[30]  Lene Granzau Juel-Jacobsen “The World for a Crooked Street”: Towards a Supermarket Morphology of Shopping Aisles and Retail Layout , 2015 .

[31]  Venkatesh Shankar,et al.  Cross-Category Effects of Aisle and Display Placements: A Spatial Modeling Approach and Insights , 2009 .

[32]  L. Lockshin,et al.  The Real Estate Value Of Supermarket Endcaps , 2018, Journal of Advertising Research.

[33]  J. Bauer,et al.  What Constitutes a ‘‘Good Assortment''? A Scale for Measuring Consumers' Perceptions of an Assortment Offered in a Grocery Category , 2012 .

[34]  Lene Granzau Juel-Jacobsen Aisles of life: outline of a customer-centric approach to retail space management , 2015 .

[35]  Gabriele Pizzi,et al.  The effect of shelf layout on satisfaction and perceived assortment size: An empirical assessment , 2016 .

[36]  Theresa M. Marteau,et al.  Sales impact of displaying alcoholic and non-alcoholic beverages in end-of-aisle locations: An observational study , 2014, Social science & medicine.