A year ago we moved greeting cards from the traditional newsagent card aisle down to the front of our shop. This involved a $95,000 investment in new fittings, a new floor and more appropriate lighting for the 50 sq metres allocated. Several months ago we, working with our main card supplier, Hallmark, we extended the range, further tweaked the shop-fit and relayed cards and associated products. The result is a significant increase in sales. The first two photos below fit together to show the whole space.
We have created a space people wander. Average browse time has more than doubled thanks to more product and more surprises on the journey through the space. Also, moving cards away from the high traffic area of the newsagency has improved the customer experience. Below is a picture of what we have done with wrap – lifting it off the traditional floor unit and displaying it horizontally. Newsagents have tended to not like this approach. Our feeling is that it is easier for the customer. We use a similar approach on another wall (not photographed) for our bags. Customers can see 80% of each bag and get a better feel for what they are buying without having to dig into the stock as often happens in newsagencies with bags.
The final image shows the depth of the space and the range of stock carried. The aisles are wider than they seem. We often see five or more browsing our cards which, for our shopping centre, is amazing.
The result of the investment of time and money has been a significant increase in sales. I won’t quote detailed figures yet because it is too early but I will note that for Father’s day sales were up 350%. What is interesting is the significant increase in multiple item sales. Whereas in the past the majority of card sales involved a single card, now the majority of sales involve multiple cards. We’re using data from our point of sale system to tweak the card space in pursuit of greater basket depth.
Without wanting to blow our own trumpet we feel that what we have done represents generational change for newsagents and cards. Moving cards out of an aisle and into a warmer specialist space in-store reflects a commitment newsagents ought to consider.
Great innovation for your cards. There is an even better use of space to display bags and save shelf space at the same time (will take some pics and send). Also you may think about changing your supplier, about 4 months ago we became tired of Hallmark leaving dead stock in our shop (and on our account) while continuing to send more stock (adding it to our account). We changed to Henderson/Spirit/Simpson/KatKards. Since then sales have increased over %30 dead stock is non existent and our browse to sale rate has increased dramatically and multiple sales of cards are now the norm. We were also given a better margin with no need for a contract (one was available, our choice not to take it) they believe their product and business ethics will create a long term relationship. Just some food for thought.
Peter Stubbs
(Tower User)