ARLINGTON, VA — May 3, 2010 — New research about shoppers and the front-end checkout area, Front-End Focus, will be released at FMI 2010 on May 11 in Las Vegas, NV. The study is sponsored by Mars Chocolate North America, a division of Mars, Inc., Time-Warner Retail Sales & Marketing, a division of Time Warner, The Wm. Wrigley Jr. Company and The Coca-Cola Company and was conducted by Dechert-Hampe & Company.
“FMI is pleased to provide insight to our members and FMI 2010 attendees that will help grocery stores provide their customers with a better shopping experience,” said Leslie G. Sarasin, president and chief executive officer at FMI. “At the same time, this research is a valuable tool to support increased revenues through improved merchandising techniques.”
Checkout sales represent more than 1.0 percent of total grocery sales according to the research. The study found that retailer sales performance in the front-end checkout area varies widely based on the merchandising practices of individual stores. The research defines a set of best practices that can help retailers realize up to 30 percent or more improvements in sales and profits at the front-end.
“Leading edge retailers recognize the value of the front-end checkout to their business,” said Drew Wintemberg, executive vice president for Time-Warner Retail Sales & Marketing. “We are working to provide them with the knowledge to optimize their results.”
The study suggests that retailers should manage the front-end as a department with a dedicated manager because it found that the contribution from front-end checkout sales is larger than all but a few major product categories and even some entire departments.
Food Marketing Institute (FMI) conducts programs in public affairs, food safety, research, education and industry relations on behalf of its nearly 1,250 food retail and wholesale member companies in the United States and around the world. FMI’s U.S. members operate more than 25,000 retail food stores and almost 22,000 pharmacies with a combined annual sales volume of nearly $650 billion. FMI’s retail membership is composed of large multi-store chains, regional firms and independent operators. Its international membership includes 126 companies from more than 65 countries. FMI’s nearly 330 associate members include the supplier partners of its retail and wholesale members.
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