As non-essential spending continues to creep, retailers must be prepared with a multi-layered merchandising strategy to maximise impulse sales, according to Rolf Whiteman, Sales Director at Harrison Retail.
UK retailers saw their biggest monthly sales drop since 2023, falling by 2.3% in May, with poor weather being a factor. Yet, with the warmer weather looking to stay, and temperatures predicted to reach over 30 degrees again over the coming week, this could soon change rapidly, with impulse spending set to rise. As customers head out to the beach and embark on family activities, their spending increases, especially with the school holiday period inbound.
April 2025 was the warmest on record this year and saw a 6.9% increase in in-store spending after it dropped by 1.9% in March on a year-on-year basis, Barclays found. Consumer card spending also grew by 4.5% in April compared with the same period last year, the biggest rise since June 2023, whilst non-essential spending rose by 5.1% last month, its highest rate in almost two years.
Impulse purchasing occurs when a consumer experiences a sudden, often powerful and persistent urge to buy something immediately, making up a staggering 27-62% of total buying in-store. Although the factors that drive an individual to make a purchase they had not initially intended are largely out of retailers’ control, store layout, atmosphere, and promotional displays can heavily influence buying behaviour.
Whiteman noted that as we gear up to peak summer season, retailers must ensure they are not only prepared for the increased footfall, but also that they have the correct merchandising displays in place to capitalise on impulse purchase sales.
“One of the most common, easiest and inexpensive promotional display tactics we see across stores is strategic cross merchandising, where complementary products are grouped together, encouraging customers to make additional purchases or upgrades. As we approach British summer time, retailers should create seasonal themed displays, featuring product bundling and limited time offers, to effectively leverage consumer psychology and drive sales. In turn, shoppers will benefit from a more seamless and simplified experience, locating all items needed for a particular task or event in one place.”
Whiteman continued: “Floor-standing dump bins, when strategically positioned in high traffic areas, such as at the end of aisles or near check-out, capture the attention of customers, raise awareness of special offers and drive impulse sales by increasing product visibility. Made from durable metal, often collapsible, and suitable for any small loose items, dump bins serve as an effective secondary display to supplement wider merchandising strategies. Designed for large items, free-standing display baskets and tables are another example of an ideal semi-permanent merchandising solution for neatly displaying products.
“Clip strips, ideal for hanging snacks, gift cards, or any lightweight packets from retail shelves at the end of an aisle or near till areas, are a simple and cost-effective solution to increase average-order-value and boost cross-selling and up-selling opportunities. To maintain attractive and well-stocked shelves, retailers must prioritise inventory management to sustain successful impulse sales. As such, adjusting stock to buying patterns and ensuring the correct seasonal products are in stock means retailers are ahead of the game in meeting impulsive buying patterns.”
Whiteman concluded: “As in-store spending takes a turn for the better and we enter peak summertime season, retailers should ensure they are best prepared to make the most of increased footfall by planning a multi-layered merchandising strategy to align with seasonal demand. And, to successfully sustain these impulse and promotional sales throughout the season, effective inventory management is key, ensuring on-demand products are well stocked on displays to maximise customer appeal and drive sales.”
NAM Implications:
- Suppliers wishing to influence shoppers in the aisle…
- …may feel that Retail Media usage could drive impulse purchase.
- In which case, linking RM to weather may provide a basis for sharpening a competitive edge…
- …in a retail ‘try it and see’ environment.
- Watch this space…
