For years our only confectionery offer has been Darrell Lea because we felt it offered a crucial point of difference. Also, we had outlets nearby which offered the traditional impulse confectionery and gum products.
Several months ago we extended into gum and products from the Natural Confectionery Company. While they have done well, the introduction of Cadbury impulse lines – Freddo and Caramello Koala – has been considerably more successful. We currently have these located on the corner of our counter, near our busiest lottery terminal. We know we will need to move these around so that our customers notice them.
Experts in the confectionery area tell me that the market for these bite-sized items is strong in businesses like newsagencies where the shop is located near a car park (as we are). Shoppers are more likely to buy something to snack on as they walk to their car when leaving a centre than when walking into a centre.
We still promote Darrell Lea on the stands and at our counters. The range continues to drive destination business as well as impulse business.
I agree that the Freddo represents a good impulse buy year after year. My confectionery wholesaler provides us with little 210g bags of premixed soft lollies with things like teeth, bananas, spearmint leaves, jelly babies, snakes etc. They’re on the counter and sell for $3.00 a bag and if I don’t sell at least 75 bags a weeks it’s very quiet. I locate them next to the Lotto counter and main counter high traffic areas.
I am toying with buying Minties, Fantales and some other favourites and packing them into smaller bags for other impulse buys as a trial.
Mark,
Does Darrel Lea mind you selling a competitor brand of chocolate? Our store has an exclusive agreement with Darrel Lea for us not to sell other chocolates, although we do have other confectionery and gum as well.
Aaron – I hope your store is adequately compensated for giving Darrell Lea exclusivity?
Supermarkets claim they don’t do this but Coles went through a phase where suppliers could “buy” category space to block their competitors.
It’s your retail space therefore you can make any business decision you wish.
Aaron, We stock and sell a ton of Darrell Lea and I have never heard of a exclusivity agreement. We stock all the regular bar lines and even some Dolci D’Oro and Paddington chocolates with not so much as a sniff from DL.
There are no issues with selling non Darrell Lea confectionery as far as I am aware.