Laurel Grocery Quantifies the Value of an Image

It has been said that a picture is worth a thousand words – now it has been proven that it is also worth both top and bottom line sales results.

For some time Bill Baker at Laurel Grocery Company has been a believer in helping consumers find their favorite products while shopping and helping employees to do their jobs better and faster with the simple addition of an image on the previously plain old shelf tag. Laurel implemented this program and recently looked at participating stores to review the impact on sales those tags are having.

Stores with substantial sales gains outnumber stores with flat or negative year-over-year trends by a margin of 2-1. The stores studied were in the heart of this competitive environment. Most of the stores are small independent supermarkets most affected by business incursions from Wal-Mart and larger regional or national grocery chains.

Many issues can lead to sales declines; however, sales increases, especially those in double digits, clearly must be attributed to strategies beyond maintaining share in slow growth population areas.

Bill Baker and Gladson have found in this study that much of this sales gain is explained by the use of image shelf tags. The biggest sales gain impacts come from the reduction in lost sales due to out-of-stocks. Over 50 Industry studies have identified store practices as the primary culprit accounting for over 70% of out-of-stocks. Including an image on the shelf tag directly and effectively attacks these in-store causes. An image tag virtually eliminates faceovers which is one of the largest causes of missed replenishment opportunities. That same image clearly identifies what product is missing when a hole occurs or on a busy weekend when shelves are a jumble and products are misplaced. Finally, the image assures the right product is ordered at the time of replenishment. The impact on sales is dramatic, much stronger than any of the Industry study estimates.

Not only do the Image Shelf Tags and Strips impact replenishment efficiencies and practices, they also impact customer loyalty. The images make the shopper’s chore easier with products more easily located. The image tags identify to the consumer that favorite products are still handled but may be out-of-stock or in the back room. The image tags also make for a neater store and one more convenient to shop because of the reduction in out-of-stocks. Finally approximately 23% of customers read English as a second language or read at levels approaching illiteracy. The image tag on the shelf helps consumers establish the product-to-price relationship, which in most purchases is the last step.

Gladson’s Image Shelf Tags and Strips maintain category management/planogram compliance, assist the store in accurate replenishment and help achieve every store’s ultimate goal – increased sales.

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