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In-Queue Merchandising for Convenience Stores
Retailers understand the value of providing impulse purchase opportunities to customers and many have recognized that the customer queue (waiting line) is the most powerful impulse selling location in the store. Customers standing in the queue are idle and more likely to engage with merchandise. Therefore, items merchandised in the queue typically see a 25%+ increase in sales. The result is that in-queue merchandising has become common place in medium and large store formats. However, some observers question whether in-queue merchandizing is suitable for stores in the 2400-2500sqf range typical of convenience stores.
Circle K Ireland
Circle K is Ireland’s leading forecourt and convenience retailer with 410 sites across the island of Ireland. Circle K Ireland is part of the Canadian group Alimentation Couche Tard. The group employs over 130,000 employees globally and has 16,000 stores in over 20 countries worldwide including almost 10,000 Circle K stores in the US.
In 2018 Circle K Ireland began a project to research the viability of in-queue merchandising in their forecourt stores. Queue Solutions’ local partner Q-fitz Ltd advised Circle K that to optimize both customer satisfaction and sales potential they should start by opting for a single line format for their checkouts. A single line means one waiting line servicing all checkouts rather than the traditional multi line system in which each check out has its own line.
The single line format is a key element to the success of any in-queue merchandising system. This is in part because in a multi-line format many customers access the checkout without lining up in the queue system and miss the merchandising offered. This lack of line discipline in turn affects customer satisfaction levels. The social justice of the shopper is adversely affected when customers outside the line reach the checkout first breaching the “First Come First Serve Principle”.
Having determined that a single line format was the best option Circle K began a test rollout of Queue Solutions In-Queue Merchandising panels and accessories. This unique system is based on aluminum slatwall panels matched with an attachment collar that allows the panels to be attached to regular retractable belt queueing stanchions. Fast and easy to set up by a single person the panels can be configured in a variety of layouts using just the allen key provided. With the queue based merchandizing fixtures in place Circle K set out the planogram focusing on salty and sweet snacks.
The Results
During several months of testing in an increasing number of stores Circle K was able to confirm a significant uplift in sales of items merchandised in the queue. This was of a scale that gave a surprisingly fast ROI on the in-queue fixtures. As a result, Circle K has continued to rollout in- queue merchandising in their Irish stores and enjoys ongoing success from the program.
