Perfect pick me ups

Suppliers explain how to maximise unplanned purchases in key impulse categories.

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Plenty of consumers are still finding the cost of living a struggle, and two-fifths (39%) of Brits say they are trying ‘slow shopping,’ by being more intentional and discerning with their purchases, according to recent research from Barclays.

But try as they might, when they pop into their local store for bread, milk or a vape, many find it nigh-on impossible not to be tempted by what else is on offer. Over half of consumers (53%) say there are treats and luxury purchases they continue to buy, even when trying to budget.

What’s more, a survey from vouchercodes.co.uk found that 88% of Brits (59.6 billion) make an impulse purchase at least once a month and 45% of people make impulse purchases when they’re grocery shopping.

“Impulse purchases are one of the key factors we play on in our shop,” says Anila Ali of Ali’s Convenience Store in Tranent, East Lothian. “I think it’s something every retailer needs to play upon, especially if there’s something new on the market or if you’re one of the first to bring something that’s trending on TikTok.”

So exactly which categories are the power players within impulse sales and how can you optimise your offer to make them truly irresistible?

PepsiCo is quick to highlight the Salty Snacks category, which is worth £637.5m in Independents and Symbols and growing at +9.0% [Nielsen IQ YA value sales, 52w/e 15.06.24] as a key contender. “Within this, Crisps, Snacks and Nuts accounts for 96.7% value sales of Total Savoury Snacks [ibid], presenting a huge opportunity for Scottish independent retailers to grow their impulse sales through their savoury snacking offering,” states Nic Storey, Senior Sales Director for Impulse & Field Sales at PepsiCo.

Big flavours

The fear of missing out simply can’t be underestimated and new and limited-edition products are a great way to give shoppers that extra impetus to buy something they may not have come in for. The firm set sales alight last spring with the launch of its Extra Flamin’ Hot flavour across three different brands: Walkers Max, Doritos and Wotsits Crunchy. And now it is hoping to fire up sales once more by introducing the flavour to Walkers crisps for eight weeks only.

Rob Pothier, Senior Marketing Manager at PepsiCo, says: “The launch of our Extra Flamin’ Hot brand platform last year brought some much-needed heat to crisp aisles across the UK, but we’re not done yet. We know that shoppers consistently seek bold, new innovations of their favourite snacks. So, there was no better time to pair Britain’s most-loved crisps with our incredibly popular Extra Flamin’ Hot flavour portfolio, which has sold over 13.9m packs since launch [NielsenIQ RMS data for Total Savoury Snacks, 35w/e 30/11/24].

“As the first spicy Walkers Core offering, expanding our Extra Flamin’ Hot range with a limited-edition Walkers SKU will generate excitement and drive trial of the range, helping retailers to boost their savoury snacking sales in-store.”

The launch will no doubt appeal to Anila, who was quick to get in on the action last year. “They introduced three flavours at one time and asked if we wanted a hod, which we did,” she says. “So we filled that hod and had it very close to the till so people would probably see it as they walked into the shop and people queuing up at the tills would have seen it too. We were selling loads and loads of cases. Once we knew customers were aware of the products, we could then take it back into its category placement within the crisps.”

Generously seasoned Jacobs Bites from pladis are the latest products to receive the hod treatment at Ali’s Convenience Store. “We put them on the shelves and they were selling, but not great until one of my suppliers offered us a hod,” says Anila. “I put it at the counter and we’ve seen a considerable uplift. It works wonders – the customer did not come in with the intention of buying it, but it’s £1.75 in my till so that’s a win-win situation!”

Kellanova is also capturing shoppers’ imaginations with bolder flavours, expanding Pringles’ Hot Range with Blazin’ Fried Chicken. The new launch comes as the trend for spicy food flavours shows no signs of slowing down, with a 23% rise in demand for hot flavours [IRI MAT TY vs 4YA, August 23]. “Pringles is on a mission to give spice seekers exactly what they want with new and exciting tastes,” says the firm. “It’s clear that Brits are ‘heat hungry’ and Pringles is here to deliver.”

KP Snacks has been busy spicing things up too. Last year, the firm launched two new flavours of McCoy’s Epic Eats: Grilled Cheese and Flamin’ Fajita, which were available in 6-packs and the popular £1.25 price marked pack (PMP) format. Now the brand is back with more bite, with new McCoy’s Hot ‘n’ Spicy. Available in a £1.25 PMP, KP claims the snack is “perfectly positioned to drive impulse purchases for retailers”.

John McDougall, Brand Manager at McCoy’s, KP Snacks, says: “McCoy’s is known for delivering bold, punchy flavours on a distinct ridge-cut crisp, and this launch is no exception. Building on the success of spicy flavours and the growing demand for PMPs, this launch marries a popular flavour in a popular format to meet consumer demand and drive retailer sales.”

Price mark power

In addition to newness and fuller flavours, shoppers are much more likely to reach for those extra items if the price is right and stocking PMPs is a surefire way to communicate value. “The PMP format will stay increasingly relevant as the cost of living remains high and consumers continue to be more price conscious,” says Stuart Graham, Head of Convenience and Impulse at KP Snacks. “Retailers report that 86% of shoppers are looking for value and deals [KP Snacks/ ACS survey of 28 retailers, August 2022] and PMPs cater to this trend, offering consumers great value for money and clear pricing which reassures them that they’re getting a good deal. Fifty-seven per cent of impulse shoppers buy PMPs [Lumina Q1 Convenience Strategy Forum 2023] with this segment driving £325m in sales within CSN [Nielsen IQ, Total Coverage, Total PMPs Value, MAT 20.05.23].”

Worth £129m, the KP Snacks PMP portfolio features a range of SKUs ranging from 40p PMPs to £1.25 PMPs. “£1.25 PMPs are a key format for Independent and Symbol stores to focus on, accounting for 50% of CSNP sales [Nielsen IQ, Independents & Symbols, Total PMPs Value, MAT 03.06.23],” says Graham. £1.25 PMPs are worth £321.9m within the CSN category and are growing in value +4.1% [Nielsen IQ, Total Coverage, Total PMPs Value, MAT 07.09.24].

“Our range of large-format PMPs is worth £107.8m [Nielsen IQ, Total Coverage, Total PMPs Value, MAT 07.09.24],” says Graham. The KP Snacks portfolio includes top-selling Hula Hoops Big Hoops BBQ Beef, McCoy’s Flame Grilled Steak, Nik Naks Nice ‘N’ Spicy and Nik Naks Rib ‘N’ Saucy.

“Meanwhile, our smaller format PMPs are ideal for a quick and affordable snack, including Space Raiders, the UK’s number one best value brand in 40p PMPs, classic heritage favourites such as Discos, Skips and Wheat Crunchies, which are available in 50p PMPs and popular family choices including Hula Hoops core range and Pom-Bear in 65p PMPs.”

“I would say price marks play a very important part in retailing,” says Anila. “We’ve had the shop 19 years now and we’ve always opted for price-marked products. They just give consumers confidence; they know you’ve not put an extra markup. If we have an option between both [PMP and plain], we will go for the price-marked product. OK, margins may be slightly lower because you can’t obviously put a markup on, but I think it brings customers to your store. They have the confidence that this is what it actually does cost and you’re not a greedy retailer. Especially with crisps and share bags, I would say 98% of our crisps are price marked.”

PMPs continue to offer retailers a strong opportunity to grow impulse sales, agrees PepsiCo’s Storey. “For a long time, they have been of high importance to the convenience channel and to the Savoury Snacks Category, acting as the engine driver of growth,” he says. “This is because PMPs reassure consumers of value and help retailers by offering an accessible price point that builds trust. The format caters to multiple occasions and missions too, so it’s important retailers are stocking the right mix of flavours and brands to catch shopper attention on shelf and encourage impulse purchases.”

Within the Savoury Snacks Category, Sharing PMPs remain the number one contributor to Total Salty Snacks growth in value [Nielsen IQ, Total Salty Snacks value sales in Independent and Symbol stores in GB for the 52-week period ending 15.06.24]. “Within the Independent and Symbols channel in particular, 10 out of the top 15 Sharing PMP Snack SKUs include Doritos, Quavers, Cheetos Twisted, Walkers and Monster Munch, which demonstrates just how important these SKUs are for retailers [ibid],” says Storey. “Our bestselling snacking brands are all available in the sharing PMP format.”

Peperami supports the notion that PMPs are a great way to grow impulse sales. “PMP labels stand out on shelf and are a good way to draw the shoppers’ eyes to a particular product,” says Shaun Whelan, Link Snacks’ Convenience/Wholesale and OOH Controller. “It is good to have PMPs available for budget-conscious shoppers. PMPs offer a point of difference for independent retailers. Many PMPs have been specifically designed to fit in with the shopper needs of the independent sector.”

The firm claims that Peperami PMPs are very effective at generating sales. “New PMP £1.25 flashed 2 for £2 on Peperami sticks offer good value compared to standard sticks, driving value and return on sales,” says Whelan. “We ensure our Peperami PMP products are affordable for convenience retailers by supporting them with promotions and case sizes to keep the price points at the recommended retail prices. PMPs are a great way to draw shoppers to the fixture. PMP labels tend to stand out to grab shoppers’ attention. Key price points, like Peperami sticks 2 for £2 (driving rate of sale and cash margin), then compel more shoppers to buy more.”

Whelan also recommends placement in food-to-go meal deals adjacent to sandwiches, as a snack for the lunch occasion.

PepsiCo agrees that meal deals can also help to ignite impulse sales. “Out-of-home snacking makes up 19% (+5pp) share of all snacking occasions [Bolt Snacking Tracking Q2 2022 MAT, change vs Bolt Main Study 2020-2021],” says Storey. “This creates a significant opportunity for retailers to capitalise on lunchtime and on-the-go occasions and to encourage impulse spend with cross-category merchandising. This can be achieved particularly through meal deals, which can encourage impulse purchases through offering both value and convenience to shoppers on the go, as well as act as a treat for hybrid workers.”

Healthier options

Increasing the visibility of healthier products in store, such as beef jerky, could also encourage impulse sales, believes Whelan. “Jack Link’s is a high protein, high growth, high retailer profit opportunity,” he states, pointing out that its long shelf life of nine months minimises wastage, making it a particularly good meat protein product to stock.

“Merchandising with other bagged snacks, crisps and nuts is fundamental, as ambient protein meat snacks offer a healthier alternative snack for shoppers, who have become more health conscious and are seeking out a high-protein, low-calorie brand that tastes great,” he suggests. “We recommend double facing to stand out on shelf and avoid out of stocks for these highest demand SKUs.”

A secondary siting is also important. “We know secondary merchandising of Jack Link’s Beef Jerky on clip strips drives high levels of incremental sales, building visibility across a store and prompt incremental purchases,” he says. “Our clip strips are available in shelf-ready boxes for ease which quickly aid merchandising.”

Healthier options are also in demand within soft drinks. One in four consumers now say that health and wellbeing is their number one priority [NIQ Homescan Survey Nov 2023], highlights a Red Bull spokesperson. “With 75% of shoppers considering health when they choose a soft drink [Appinio Survey | 2,000 Soft Drink Respondents | July 2024], it’s key to make sure there is a sufficient offering of sugar-free and zero alternatives alongside full-sugar soft drinks to cater to this need,” says the firm.

“Offering more no-sugar options is key to building incrementality for the category with more users, consuming energy drinks more often, and across more occasions. Red Bull has been key to driving this growth, with a portfolio that offers choice, growing shoppers and frequency of its no-sugar products year on year [Kantar Combined Panel | 52 weeks to 14th April 2024 & Nielsen Scantrack, Total Coverage, MAT 7th July 2024].”

Red Bull is broadening its no-sugar offer with the global launch of Red Bull Zero, delivering Zero Calories, 100% Wiings. With taste the number one driver of purchase [Kantar Worldpanel + Survey| 6,170 Soft Drink Respondents | July 2023] Red Bull Zero aims to fill a gap in the current line-up, with the liquid closer to the taste of Original Red Bull Energy Drink, the number one single serve soft drink in the market [Nielsen Scantrack | Total Coverage | Unit Sales | 52 weeks to 10.08.24]. Red Bull Zero will deliver the same energy boost and taste, but without the sugar.

Another big hitter within soft drinks is cola. Kate Abbotson, Senior External Communications Manager, GB at Coca-Cola Europacific Partners (CCEP), says: “Colas remain a big player in impulse purchases, as it is the largest soft drinks segment in retail, with almost two-thirds (64.4%) of cola sales value generated by the Coca-Cola portfolio [Nielsen Total Coverage incl. discounters value data MAT to 07.09.24]. This includes Coca-Cola Original Taste, which continues to drive value growth in retail [ibid]; Diet Coke, which is worth more than £505m in retail [ibid]; and Coca-Cola Zero Sugar, the fastest-growing cola brand in GB by value (Nielsen and CGA Total GB value data MAT to July 2024).”

Recently launched Coca-Cola Lemon became one of the biggest soft drink launches of 2024 [Nielsen Total GB value data MAT to 10.08.24]. The firm added further innovation to the range in September, partnering with Oreo for Coca-Cola Oreo Zero Sugar Limited Edition. “This has also proven popular with consumers as we recognise how important it is to keep bringing new twists to the cola category,” says Abbotson.

When it comes to carbonates, Fanta, the leading flavoured carbonate brand in GB retail [Nielsen Total GB incl. dis MAT Val w/e 07/09/24], accounts for almost one in every five flavoured carbonates sold in GB [ibid] and is valued at almost three times more than its nearest competitor [Nielsen Total GB incl. dis MAT Val w/e 07/09/24].

“We’ve kept the brand front of mind with consumers thanks to a bolder pack design for all flavours, alongside a new and improved taste for Fanta Orange Zero Sugar,” says Abbotson.

Sweet treats

As one of the top five categories purchased on impulse in convenience stores [Lumina Intelligence], confectionery is another vital piece of the puzzle.

“Sugar Confectionery is a resilient category as it delivers lifts and treats for its consumers,” says Mark Roberts, Marketing & Trade Marketing Director at Perfetti Van Melle. “As we continue into a challenging economic landscape, confectionery remains an affordable treat, giving retailers a compelling sales generator.”

Perfetti Van Melle advises retailers to focus on tapping into one of three key shopper missions: refreshment; indulgence, such as fruit flavours; and on the go.

The company is certainly helping retailers fulfil fruity missions with its latest NPD. Chupa Chups leads the market, currently valued at £17.7m and growing +14% year-on-year [Circana All Outlets & KWP Discounters | 52 w/e 11 May, 2024 | Value Sales], and has been busy diversifying its lollipop and candy portfolio. Having forayed into the jellies space this year, the brand extended its sell-out range with new Chupa Chups Bites and Tubes. The sour sweets are available in 120g PMPs, for £1.25, attracting Chupa Chups’ target audience of teens seeking affordable treats.

Also targeting teens with its fruity flavours is Mentos Pure Fresh Gum. Perfetti claims the brand’s bottles have generated £8.5m in value sales, with unit sales having risen by +10.1% over the past year [Unify data, value sales all outlets: Mentos Pure Fresh Gum Bottles, 52 w/e 3rd August 2024].

Confectionery is deserving of a prime spot by the pay point, states Roberts. “Counter-top units should ideally sit at arm’s reach from the main till point to drive impulse sales,” he says. “Front-of-store POS that sits at eye level can also capture attention and increase impulse purchases.”

Anila agrees with this wholeheartedly. “I’ve always jokingly said to my husband, ‘We can put anything at the front of the till and it will sell.’ Whereas if we have it sitting on the shelves it may not.

“I think placement plays a very strong part [in impulse sales]. We try and put as much as we can – tastefully – at the till point.

“What’s trending right now is wafer rolls. So you’ve got Twix, Snickers, Galaxy flutes, Bounty, they’re trending on TikTok right now. We’re delivered pretty small cases, so we’ll put them on the counter and we sell case upon case.”

She urges other retailers to take advantage of every opportunity toboost impulse sales. “Each of those unplanned sales counts and these little purchases do add up, we’ve seen that over many years it makes a difference,” says Anila. “Even if it’s getting a customer to spend an extra pound, that’s a pound that you wouldn’t have got otherwise. I think it’s something every retailer should really take into account.”