Retailers rely on a host of tactics to get you to purchase stuff you don’t want, don’t need and never intended to buy.
And their ploys often work: 9 out of 10 shoppers make impulse purchases, buying items that weren’t on their shopping lists, according to a recent survey by The Checkout, an ongoing shopper behaviour study conducted by retail branding firm The Integer Group.
Impulse buys are a bona fide profit centre for retailers, and we’re not just talking about the tchotchkes and sweets, from plastic bangles to jelly beans, often planted near the cash registers along the checkout line.
DailyFinance spoke to retail experts, including a few former senior merchants from some of the biggest chains, for an insider take on ways stores induce you to buy — often so subtly that you don’t even know it.
This story was originally published by DailyFinance.
Stores pull together colour-coordinated items in matching or complementary hues as part of a thematic display designed to spark impulse purchases and multiple sales.
A retailer will spotlight a spring-themed bathroom display, for example, grouping blue, yellow and green shower curtains, bath towels, a rug and bath mat 'so that it makes a really nice statement,' Steve Ryman, the former vice president of home for both Sears and Kmart (SHLD), who now runs retail consultancy Ryman Consulting, tells DailyFinance.
The display is so nice that a shopper who's in the department simply to buy some new shower hooks suddenly thinks, ''It's time to refresh my bathroom -- and I can do it for $25!' -- and they throw it all in their cart,' he says.
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Everything from pineapples and palm trees to owls and peace signs have at one time or another captured the imagination of the American consumer -- prompting them to shell out cash for all manner of merchandise sporting the motif du jour.
Often a trendy motif starts at the high end, 'then filters its way down to every store in the nation,' Ryman says.
When a look is at the height of its popularity, retailers know shoppers are under its odd spell -- but only for a limited time. So while the going's good, they conjure up store displays that enshrine the motif, often featuring 'totally unrelated products,' Ryman says.
Accordingly, a shopper might find they've brought home a pineapple-themed wreath, bath accessory, doormat and candle.
Retailers use 'punitive pricing promotions' to spark impulse sales, says Mark Cohen, professor of marketing in the retailing studies department of Columbia University's business school, and a longtime retail veteran who was the former CEO of Bradlees and Sears Canada and has held positions at the Gap (GPS) and Lord & Taylor.
Such promotions include buy one and save 20%, buy two and save 30%, buy three and save 50% type sales.
Stores trick shoppers into thinking, ''the more you buy, the more you save' -- without regard to how much you actually need,' Cohen says. 'Consumers love these deals, which in fact reward their impulsive behaviour.'
Call it retail theatre: Stores hire well trained and bubbly marketing experts to draw you to their product demonstrations by staging tempting, multi-sensory experiences.
The seduction begins with the overall look and feel of the demo area, with a display that 'catches your eye,' Ryman says.
Then stores further hook shoppers with food and drink.
So a browser sampling, say, a new cheese cutter, is also fed 'cheese and sausage, and at the same time they're selling you the cheese cutter, they're selling you knives, six new wine glasses and a bottle of wine,' Ryman says. 'Retailers maximise the sale by putting together as much related product as they can.'
So the now semi-tipsy shopper who didn't even think he needed a cheese cutter has not only purchased that implement, but all the other accouterments, too.
Out with the old, in with the new: Stores send this message to shoppers by playing up new merchandise -- even when its newness is dubious -- by showcasing the goods in a fresh setting, prompting shoppers to make an unplanned purchase.
Retailers highlight presentations of current-season clothing, for example, 'which by virtue of fashion, silhouette, or features and benefits, makes last season's merchandise appear to be dated or obsolete,' Cohen says. 'It plays to a customer who doesn't want to be considered behind the times, without regard to whether or not this new merchandise is actually better or truly different.
This is why new season merchandise is invariably different in the way it's coloured/packaged and presented so as to make last year's version less attractive.' Retailers know that 'new and engaging, if only by way of packaging, promotes impulsive buying,' Cohen says.
And with consumer packaged goods like cereal, stores can accomplish the same thing 'merely through the use of the word 'new' on a package, insinuating the importance of what is typically an insignificant reformulation.'