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OPINION: RV Retail Rolls On

A picture of NTP-Stag merchandising director Val Byrd

We have received good news on the retail front. The National Retail Federation said sales are officially on the upswing. While core retail sales rose 2.48% for the first five months of the year, May 2024 registered the highest month-over-month gains since April 2023. In May, sales increased 1.35% month-over-month and 3.03% year-over-year.

Additionally, RVIA forecasts an uptick in RV wholesale shipments to the mid-300,000s by years’ end, with continued growth in 2025. RVIA President Craig Kirby said, “…this new forecast reinforces our cautious optimism that the worst of the impact from interest rate increases is behind us.”

This trend signals an aftermarket business boost, too. So, let’s reset and “ready” the RV parts and accessories operations for the year’s second half.

What defines readiness? A readied retail environment is organized, well-stocked and designed with consumers’ comfort as a guide. The store must have adequate shelving and a thoughtfully selected product mix to serve shoppers’ needs and wants. You can further enhance the consumer experience and maximize sales by positioning categories strategically and offering a competitive price structure. The essential add-ons include daily store conditioning and executing a strong, consistent in-store marketing plan.

Traditional retail strategies are still relevant. American shoppers usually walk toward the right when they enter a store and move counterclockwise through the retail space, so you should place promotional items in critical areas to draw traffic through the store. Routinely purchased categories, such as your “bread and milk” products, still belong at the back of the store. Consumers will walk past convenience, destination and occasional/seasonal categories, making them more likely to make unplanned purchases.

Once the shopper moves along our preferred path within the store, the mission is to get them to place items in the shopping cart. This is where product placement’s importance shines. We know the typical shopper pays most attention to shelving space located from the belt-to-eye level. This is premium real estate, where you should showcase high-demand, profitable products. Less preferred and larger items should sit on the higher and lower shelves. Point-of-Purchase Advertising Institute’s (POPAI) research shows that more than half of all purchase decisions are made in-store, so attention to strategic product positioning will help maximize this trend.

The most memorable stores combine best retail practices with a little personal flavor. Bass Pro Shop is a master at this, but I’ve also seen this done at smaller operations. Bish’s RV is an example of a dealer that does a great job with this. I have visited several of the dealership’s locations and noticed that each includes a wonderful display featuring a photograph of company founder Leland “Bish” Jenkins, along with a brief history (referred to as Bishtory) of how he started the business and built his legacy, and the importance of passing down the operation and his values to his sons and grandchildren. This emphasis on family creates a positive vibe and sets the tone for consumers’ entire visit. Simply put, the display is memorable.

In some U.S. regions, dealer traffic will become sluggish as the fall and winter months approach. However, I contend that retailers can continue selling parts and accessories during the slow season.

Focusing on seasonal and impulse sales is a brilliant strategy for generating revenue. Think of seasonal products as SKUs whose demand spikes during specific times of the year. Examples include weather-related items such as antifreeze, generators, all-weather radios and picnic supplies. To expand the idea, consider annual events such as back-to-school, fall festivals and tailgating, holiday gift-giving and even ice fishing. Popular seasonal products during these times include satellite TV products, Wi-Fi extenders, grills, chairs and canopies, pet accessories, housewares, insect repellents and games.

Consider building a lifestyle display that creates an engaging scene or experience that resonates with your target customer. The setup itself can and should be simple and include products available in your retail store. The goal is to tell a compelling story that aligns with your brand and motivates consumers to act. You are not just selling a Faulkner grill; you are selling a tool to give consumers a convenient way to cook lunch and spend precious time with their families.

Adding props and thoughtful signage will pull on shoppers’ heartstrings and drive the point home. If floor space is unavailable, use inline shelf space and end caps instead. Many RV aftermarket suppliers offer free or low-cost POP materials to highlight their products.

Impulse buys are purchase decisions made on the spot without prior planning. These spur-of-the-moment purchases occur when our emotions override our logical thinking. As you know, consumer behavior is a fascinating topic. Neuroscience studies prove our brains release dopamine when we see products we want, and this sets into motion the famous scenario of going to a store to buy one widget and leaving with 10. I often recommend Paco Underhill’s classic retail strategy bible, “Why We Buy,” to understand this phenomenon in detail. Impulse buying contributes $100 billion in annual U.S. retail sales.

Shelf extenders, clip strips and wire wing panels (also known as side caps) are small but mighty when driving impulse sales. Using these merchandising tools increases display capacity and product exposure. These, in turn, improve consumers’ chances of noticing and being lured to make impulsive purchases they did not initially plan. Because these fixtures are portable, you can position them near complementary items to create cross-merchandising opportunities.

We see this strategy used daily in food markets and big-box stores because it works.

The end of the year is not the time to kick back and let on-hand inventory sell down. Instead, it is the perfect time to dig in and fight for incremental sales and market share. Many competitors will choose to rest on their laurels, so your time and energy spent on strategy and execution will translate into a bigger bottom line.

Here are some tips for effective impulse selling:

Create an appealing store layout: Arrange products in an attractive and organized manner to catch consumers’ attention. Use eye-catching displays and signs to highlight impulse purchase opportunities.

Offer limited-time promotions: Create urgency by running time-bound promotions or limited stock offers. These deals can entice customers to make quick purchase decisions.

Upsell and cross-sell strategically: Train your sales team to suggest additional products or upgrades to complement consumers’ initial purchases. Upselling can increase your average order value and drive impulse sales.

Provide product demonstrations: Demonstrate or sample products for consumers. Doing so can create a desire and encourage immediate purchases.

Use persuasive signage and packaging: Use convincing messaging, attractive packaging and product descriptions to influence consumers’ buying decisions. Highlight the benefits, features and limited product availability.

Offer add-on items at checkout: To encourage impulse purchases, place small, low-priced items near the checkout counter. These items should be easily accessible and related to consumers’ interests.

Leverage social proof: Display customer reviews, testimonials or endorsements near the products to increase trust and create FOMO (fear of missing out). Reading reviews can motivate consumers to make spontaneous purchases.

Train and empower your sales team: Provide sales staff with the necessary training to effectively engage customers, identify their needs and suggest impulse purchases. Encourage them to actively engage in conversation and create a positive buying experience.

 

Val Byrd is NTP-Stag’s customer merchandising manager. She has worked in the RV aftermarket for over 20 years and is a leading RV retail expert on store layout/design and aftermarket product display.

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