Focus on the “Big Head”. Despite stores carrying in excess of 50,000 sku’s, the average grocery shopper regularly buys less than 200 items. Focusing incremental merchandising efforts on these high velocity items along the Dominant Path results in high opportunity for larger basket sizes.
Many retailers continue to spend an inordinate amount of effort and resources attempting to lure shoppers into new aisles and categories in the store. While promotions and destination category placements may result in some short term gains, merchandising smartly where shoppers are already shopping will yield much higher returns over time, without the heavy reliance on markdowns and promotions.