| Literature DB >> 24632050 |
Ryota Nakamura1, Rachel Pechey2, Marc Suhrcke1, Susan A Jebb3, Theresa M Marteau4.
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.Entities:
Keywords: Alcohol; End-of-aisle display; Grocery store; Non-alcoholic beverages; Primary prevention; United Kingdom
Mesh:
Year: 2014 PMID: 24632050 PMCID: PMC4008933 DOI: 10.1016/j.socscimed.2014.02.032
Source DB: PubMed Journal: Soc Sci Med ISSN: 0277-9536 Impact factor: 4.634
Descriptive statistics (mean (standard deviation)) for key variables by whether items were displayed on or off an aisle end.
| Beer | Wine | Spirits | Carbonated drinks | Coffee | Tea | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Items displayed on aisle ends | Items displayed on within-aisle shelves | Items displayed on aisle ends | Items displayed on within-aisle shelves | Items displayed on aisle ends | Items displayed on within-aisle shelves | Items displayed on aisle ends | Items displayed on within-aisle shelves | Items displayed on aisle ends | Items displayed on within-aisle shelves | Items displayed on aisle ends | Items displayed on within-aisle shelves | |
| Number of items purchased per week | 86.37 (115.28) | 19.85 (40.94) | 49.98 (82.44) | 14.93 (29.94) | 47.28 (128.67) | 10.39 (15.91) | 178.26 (188.15) | 55.54 (100.06) | 69.79 (84.41) | 14.13 (28.78) | 125.68 (159.71) | 13.53 (29.14) |
| Volume of items purchased per week (litre or kg) | 304.94 (469.88) | 38.86 (170.31) | 35.59 (62.78) | 12.40 (22.88) | 42.19 (128.36) | 7.60 (13.09) | 367.54 (387.64) | 85.51 (159.47) | 13.23 (19.04) | 2.41 (5.72) | 63.99 (109.23) | 3.07 (13.18) |
| Number of display locations | 2.57 (0.98) | 1.31 (0.51) | 2.12 (0.71) | 1.33 (0.48) | 2.30 (0.56) | 1.22 (0.42) | 2.31 (0.59) | 1.15 (0.37) | 1.99 (0.56) | 1.02 (0.13) | 2.38 (0.92) | 1.03 (0.18) |
| Price per volume (£ per litre or kg) | 2.23 (2.01) | 2.73 (1.04) | 6.74 (3.08) | 7.10 (4.04) | 17.25 (5.87) | 18.50 (6.49) | 0.87 (0.43) | 0.90 (0.63) | 20.03 (6.61) | 18.13 (8.39) | 12.76 (9.26) | 18.77 (13.10) |
| Price per pack (£) | 7.02 (4.10) | 4.13 (3.85) | 4.43 (3.21) | 6.22 (3.68) | 13.22 (4.46) | 12.76 (5.00) | 1.66 (0.88) | 1.25 (0.92) | 2.97 (1.15) | 2.66 (0.96) | 2.36 (1.15) | 1.94 (1.11) |
| Proportion of week on price promotion | 0.49 (0.44) | 0.30 (0.41) | 0.34 (0.40) | 0.07 (0.24) | 0.28 (0.42) | 0.05 (0.21) | 0.92 (0.22) | 0.79 (0.37) | 0.71 (0.40) | 0.24 (0.39) | 0.52 (0.46) | 0.18 (0.34) |
| Price discount rate (if price promoted) | 0.20 (0.11) | 0.13 (0.09) | 0.26 (0.17) | 0.14 (0.15) | 0.19 (0.10) | 0.08 (0.08) | 0.38 (0.14) | 0.24 (0.15) | 0.21 (0.16) | 0.14 (0.12) | 0.28 (0.18) | 0.13 (0.13) |
| Observations | 176 | 2502 | 928 | 2258 | 157 | 1333 | 177 | 1566 | 110 | 1778 | 34 | 2122 |
| Total number of products in category | 307 | 536 | 201 | 237 | 199 | 213 | ||||||
| Proportion of items that were ever displayed on aisle ends | 25.1% | 60.1% | 28.9% | 28.7% | 28.1% | 11.3% | ||||||
| Number of trolleys which purchased any item from the category | 2455.2 (419.8) | 3208.2 (400.5) | 1250.7 (388.3) | 4480.5 (571.4) | 1821.7 (256.0) | 1872.4 (268.2) | ||||||
Price discount rate is percentage discount, defined by ([reference price] − [discounted price]) ÷ [reference price].
Regression estimates (based on multiple fixed effect truncated model) of the impact of end-of-aisle display on log-scaled weekly sales volume.
| Alcohol beverages | |||
|---|---|---|---|
| Beer | Wine | Spirits | |
| Estimated coefficient (95% CI) | 0.209 (0.063–0.354) | 0.290 (0.174–0.406) | 0.379 (0.178–0.579) |
| Percentage increase of sales (transformed coefficient) | 23.2% | 33.6% | 46.1% |
| Number of display locations (95% CI) | 0.205 (0.136–0.273) | 0.037 (−0.052–0.125) | 0.133 (−0.064–0.329) |
| Price per volume (95% CI) | −5.574 (−6.099 to −5.049) | −5.180 (−5.549 to −4.812) | −5.007 (−5.685 to −4.329) |
| Proportion of week on promotion (95% CI) | 0.237 (0.117–0.357) | 0.346 (0.221–0.471) | 0.340 (0.123–0.556) |
| Observations | 2678 | 3186 | 1490 |
The 95% confidence intervals are based on bootstrap standard errors. Other control variables include: average price of items in the same product category; total number of trolleys purchasing any product from the category in the week; and weekly time trend dummies. A least squares technique was employed in the estimation. A least absolute deviation (LAD) technique was also used as a sensitivity check, with similar results. In further supplementary analysis, two sided t-tests were conducted to examine whether alcohol and non-alcohol categories have the common mean effect sizes (in which each estimate was treated as being based on (1/SE)2 observations with variance of 1). The result confirmed that the size of the effects of end-of-aisle display is significantly different between alcohol and non-alcohol categories: the test rejected the null hypothesis of common mean effect sizes (t = 2.369, p = 0.018). Using the same test procedure, the effect sizes were not significantly different between the alcohol beverage categories (beer vs. wine: t = 0.853, p = 0.394; wine vs. spirits: t = 0.753, p = 0.452; spirits vs. beer: t = 1.346, p = 0.179).
End-of-aisle display is a dichotomous variable, which takes the value of 1 if an item is on aisle end and 0 otherwise. The estimated coefficient represents the average difference in the log-scaled sales volume on and off aisle end, conditional on other covariates. Percentage change was calculated by exp(β) − 1, where β is the point estimate of the coefficient.
The estimate of the number of display locations gives the percentage increase of sales volume by one extra shelf allocation.
Price per volume is log-scaled, hence the estimate represents the percentage decrease in the sales volume with a 1% increase in price (i.e. elasticity).
Characteristics of display locations by category (mean (standard deviation)).
| Alcohol beverages | ||||||
|---|---|---|---|---|---|---|
| Beer | Wine | Spirits | ||||
| Aisle end | Within-aisle shelving | Aisle end | Within-aisle shelving | Aisle end | Within-aisle shelving | |
| Proportion of trolleys passing the display | 33.8% (0.14) | 22.5% (0.11) | 27.6% (0.11) | 21.1% (0.09) | 24.9% (0.08) | 19.5% (0.09) |
| Number of different kinds of products placed in each display location | 2.85 (2.69) | 12.91 (12.12) | 7.62 (5.38) | 10.89 (7.71) | 4.42 (2.05) | 20.56 (11.40) |
| Number of allocated display locations | 8.38 (2.43) | 20.92 (2.90) | 10.08 (1.98) | 29.31 (3.47) | 2.92 (1.12) | 6.92 (1.19) |
| Number of packs purchased per shopping basket | 1.51 (0.93) | 1.48 (1.08) | 1.41 (1.21) | 1.36 (0.98) | 1.19 (0.53) | 1.13 (1.39) |
| Non-alcohol beverages | ||||||
| Carbonated drinks | Coffee | Tea | ||||
| Aisle end | Within-aisle shelving | Aisle end | Within-aisle shelving | Aisle end | Within-aisle shelving | |
| Proportion of trolleys passing the display | 51.1% (0.16) | 30.2% (0.07) | 60.7% (0.14) | 38.4% (0.04) | 61.1% (0.16) | 40.7% (0.04) |
| Number of different kinds of products placed in each display location | 2.09 (1.25) | 7.38 (4.51) | 2.52 (1.96) | 28.37 (7.04) | 1.58 (1.03) | 33.05 (20.73) |
| Number of allocated display locations | 8.54 (2.70) | 20.77 (0.73) | 3.69 (1.44) | 5.23 (0.44) | 2.58 (1.24) | 6.08 (0.49) |
| Number of packs purchased per shopping basket | 1.49 (1.03) | 1.56 (1.27) | 1.29 (0.66) | 1.19 (0.56) | 1.59 (1.02) | 1.21 (0.54) |
Although it is rare, a shelf may be shared by items from different categories. In such cases the items from different categories are also included in the calculation.
Number of display locations refers to the mean number of display locations that were used by any item from the category in a given week.
For each SKU, the total number of packs sold in a given week was divided by total number of trolleys which purchased at least one pack during the same week.