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Sales impact of displaying alcoholic and non-alcoholic beverages in end-of-aisle locations: An observational study

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  • Nakamura, Ryota
  • Pechey, Rachel
  • Suhrcke, Marc
  • Jebb, Susan A.
  • Marteau, Theresa M.

Abstract

In-store product placement is perceived to be a factor underpinning impulsive food purchasing but empirical evidence is limited. In this study we present the first in-depth estimate of the effect of end-of-aisle display on sales, focussing on alcohol. Data on store layout and product-level sales during 2010–11 were obtained for one UK grocery store, comprising detailed information on shelf space, price, price promotion and weekly sales volume in three alcohol categories (beer, wine, spirits) and three non-alcohol categories (carbonated drinks, coffee, tea). Multiple regression techniques were used to estimate the effect of end-of-aisle display on sales, controlling for price, price promotion, and the number of display locations for each product. End-of-aisle display increased sales volumes in all three alcohol categories: by 23.2% (p = 0.005) for beer, 33.6% (p < 0.001) for wine, and 46.1% (p < 0.001) for spirits, and for three non-alcohol beverage categories: by 51.7% (p < 0.001) for carbonated drinks, 73.5% (p < 0.001) for coffee, and 113.8% (p < 0.001) for tea. The effect size was equivalent to a decrease in price of between 4% and 9% per volume for alcohol categories, and a decrease in price of between 22% and 62% per volume for non-alcohol categories. End-of-aisle displays appear to have a large impact on sales of alcohol and non-alcoholic beverages. Restricting the use of aisle ends for alcohol and other less healthy products might be a promising option to encourage healthier in-store purchases, without affecting availability or cost of products.

Suggested Citation

  • Nakamura, Ryota & Pechey, Rachel & Suhrcke, Marc & Jebb, Susan A. & Marteau, Theresa M., 2014. "Sales impact of displaying alcoholic and non-alcoholic beverages in end-of-aisle locations: An observational study," Social Science & Medicine, Elsevier, vol. 108(C), pages 68-73.
    • Handle: RePEc:eee:socmed:v:108:y:2014:i:c:p:68-73
    DOI: 10.1016/j.socscimed.2014.02.032
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    Cited by:

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    2. Richard Friberg & Mark Sanctuary, 2017. "The Effect of Retail Distribution on Sales of Alcoholic Beverages," Marketing Science, INFORMS, vol. 36(4), pages 626-641, July.
    3. Fildes, Robert & Goodwin, Paul & Önkal, Dilek, 2019. "Use and misuse of information in supply chain forecasting of promotion effects," International Journal of Forecasting, Elsevier, vol. 35(1), pages 144-156.
    4. Jennifer L. Harris & Victoria Webb & Shane J. Sacco & Jennifer L. Pomeranz, 2020. "Marketing to Children in Supermarkets: An Opportunity for Public Policy to Improve Children’s Diets," IJERPH, MDPI, vol. 17(4), pages 1-20, February.
    5. Placzek, O., 2018. "Obesity in Scotland: A bad diet or bad supermarket promotions?," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276949, International Association of Agricultural Economists.
    6. Tan, Pei Jie & Corsi, Armando & Cohen, Justin & Sharp, Anne & Lockshin, Larry & Caruso, William & Bogomolova, Svetlana, 2018. "Assessing the sales effectiveness of differently located endcaps in a supermarket," Journal of Retailing and Consumer Services, Elsevier, vol. 43(C), pages 200-208.
    7. Pettigrew, Simone & Biagioni, Nicole & Jones, Sandra C. & Daube, Mike & Kirby, Gary & Stafford, Julia & Chikritzhs, Tanya, 2015. "Sales promotion strategies and youth drinking in Australia," Social Science & Medicine, Elsevier, vol. 141(C), pages 115-122.
    8. Schweiger, Elisa B. & Ahlbom, Carl-Philip & Nordfält, Jens & Roggeveen, Anne L. & Grewal, Dhruv, 2023. "In-store endcap projections and their effect on sales," Journal of Retailing, Elsevier, vol. 99(1), pages 5-16.
    9. Page, Bill & Trinh, Giang & Bogomolova, Svetlana, 2019. "Comparing two supermarket layouts: The effect of a middle aisle on basket size, spend, trip duration and endcap use," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 49-56.

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