As much as 80% of the time a shopper spends in a retail store is wasted on searching for the items they buy, NOT in the process of making purchased decisions.
While the amount of time they have budgeted to shop in the store is reasonably fixed, the amount of money they spend in that time is up to the retailer and it’s merchandising efforts.
Accelerated Merchandising™ measures Time, Space, and Activity of In-store Shopper Behavior…and Links Those Metrics Back to Impact on Sales!
Retailers heavily invest in physical facilities, fixtures, Category Management tools and technology, without the basic understanding of where shoppers go in the store, how they get there, how long do they spend searching versus shopping, and how fast they buy.
While shoppers are not necessarily looking at their watch every five minutes, shopper research indicates that your customers are really good at determining when its time to leave the store. The time retailers have with shoppers on any given shopping trip is limited.
What to Do
Conversely, within that limited time they spend in the store, most shoppers are not restrained by the number of items or the amount of dollars they spend. Consequently, the goal of every retailer should not be to extend the amount of time shoppers spend with them, but rather make it easier to buy more in less or the same amount of time.
With time and space being measured by Accelerated Merchandising™, new metrics such as Closing Speed, that is the time it takes for a shopper to make a buying decision once engaged at the shelf or display, become an important yardstick for success.
The adjacent chart depicts that higher volume stores are better at closing the deal (Seconds/Dollar) than stores that are not designed or merchandised to help the shopper make faster decisions.
Shopping efficiency drives volume. The highest volume operators are the most often more efficient operators and merchandisers!