Checkout Gold: Impulse Purchases
A deep dive into what to sell, why it works and how to present add-ons at your register.
Why Retailers Should Display Impulse Items at Their Registers
Every retailer wants to increase sales without increasing retail selling floor space or spending more on advertising. One of the simplest and most effective ways to do this is by placing impulse items near the checkout register. These products encourage last-minute, add-on purchases, which increases the average transaction value and enhances the customer shopping experience at the same time.
What Are Impulse Items?
Impulse items are (generally) inexpensive products that customers buy without planning to. Because they are low-cost and convenient, shoppers often decide to purchase them while waiting to pay.
Why the Register is the Best Location
The checkout area is one of the highest-traffic locations in any store. Most customers pass through it, making it the perfect place to showcase small, appealing — and ideally high-margin — products. Typically small in size, impulse items have the potential to generate a high profit per square foot of selling area.
At the register, customers…
have already committed to making a purchase
are looking around during the checkout process or waiting in line to pay
are less likely to compare prices
may be willing to spend a few extra dollars without much thought
These factors make impulse purchases much more likely.
Continue reading for input and tips from two dozen retailers about what items to offer in an impulse area, best practices for displaying, tracking and pricing add-ons and some common mistakes to avoid. Enjoy the deep dive! ~Becky