Bulk Up
Bulk Up
Cleanliness has got to be bulk candy’s middle name.
As a $1.1 billion market with 40 to 45 percent margins, bulk
candy still hasn’t realized its full potential yet, according to category
experts. Its two major sales inhibitors — lack of availability and consumers’
hygiene concerns. A retailer’s mission must be to resolve these issues
— and watch sales bulk up.
The Imperatives
Of course, many retailers don’t make bulk candy available
to their customers because of the (lack of) freshness perception. But those
who are successful in the category know that retailers who shy away from it
are looking at it all wrong. It’s up to the retailer to position freshness
as an asset rather than a liability.
Consumers
The aging population is predicted to be a major force in the
future of bulk candy. Many older consumers don’t want to buy “family
size” bags of candy. Rather they want to pick and choose how much they
buy. Bulk allows them to control the purchase, in variety and price. This will
become more of an issue with the aging population because of their reduced household
spending and/or diet restrictions. (Many say they would rather have a little
of the real thing, rather than a bag of “diet” candy.)
Marketing
Quality display manufacturers are ready with solutions for retailers
to keep the department pristine. Portion control gravity bins are designed with
a tight lid seal to ensure product freshness and to keep bugs out. Some also
offer a UV light-block to keep nutrients intact and food fresh. Other systems
allow for automatic product rotation — with first-in, first-out flow of
product. One such system resembles a merry-go-round and enables bulk candy to
be displayed with a minimum amount of square footage space because of its circular
nature. The point is that even stores with clean store policies can creatively
merchandise bulk candy.
Outlook
Bulk candy should be a fun, positive experience for shoppers.
Many companies are working on trying to put the fun back into it — especially
now that shoppers are getting more accustomed to servicing themselves thanks
to the proliferation of self-checkout lanes. Many believe the future of bulk
lies in developing greater interactivity with the consumer.
Merchandising Musts
Consider a perimeter location.
The produce department is a good option. Shoppers buy bulk candy the same way
they buy produce — choose the quantity they want, weigh it, and put it
in a bag. Consumers associate produce with product freshness — so if bulk
is on the perimeter with it, consumers are more apt to make a logical connection
between the two and ultimately help the store achieve the best sales results.
Frequently rotate and keep it pristine.
Retailers must make sure the bulk department is frequently merchandised
and perfectly pristine to gain the most from the category. Cleanliness is a
real driver for bulk candy. The best way to keep it in tip-top shape is to have
a store employee dedicated to the section. That person should be responsible
for cleaning it, keeping it full, rotating products and eliminating slow sellers.
Some successfully go with an outside source, but experts say bulk candy is much
more successful if the retailer has a person at the store level that specifically
takes care of it.
Sample it.
Especially for retailers who are just embarking on the
category, in-store product sampling has proven to be one of the best
promotional strategies for bulk candy. It lets the customer experience
first-hand how freshness can enhance the shopper’s candy enjoyment.
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