Retail sales edged up 0.1 percent, held back by a decline in receipts from building materials and clothing stores, the Commerce Department said on Tuesday. That was the smallest gain since December when sales were flat.

March’s sales were revised slightly down to show a 0.7 percent rise rather than the previously reported 0.8 percent increase. Economists polled by Reuters had expected retail sales to gain 0.2 percent last month.

In the 12 months to April, sales rose 6.4 percent.

The Point of Purchase Advertising International (POPAI), the global association for the marketing at retail industry, today released findings from its 2012 Shopper Engagement Study.  Building upon a long line of major shopper research trend studies, dating back to 1965, POPAI’s 2012 Shopper Engagement Study once again paved the path for in-store research by adding a combination of groundbreaking EEG and eye-tracking technology to attitudinal findings and shopper interviews in-store.

So what does today’s shopper look like compared to the shopper of yesteryear?  The study found five key findings that in-store and shopper marketers should note when developing and implementing shopper programs.

Today’s Shopper: Making more decisions in-store than ever before.
Today’s shopper is more empowered than ever before to make educated and responsible buying decisions, but surprisingly it turns out that more shoppers are utilizing in-store marketing and branding cues to make an overwhelming portion of their purchase decisions.  Today’s in-store decision rate has reached an all time high of 76%. To determine the in-store decision rate purchases are broken down into four different categories – Specifically Planned, Generally Planned, Substitutes, and Unplanned.  The in-store decision rate is calculated by taking the sum of the purchases that fall under Generally Planned, Unplanned, and Substitutes categories.

The in-store decision rate is one of the most reliable measures because it is based upon pre and post shopping interviews — what the shopper anticipated to purchase versus what they actually purchased.  Given the uptick in this key metric it is clear that retailers and brands who fail to provide the in-store marketing and education the shopper seeks out risk pushing shoppers into the arms of retailers and brands who are embracing in-store marketing.

If you’re not putting your brand on ‘display’ you’re less likely to put your brand in the shopper’s basket.
From organic labels to premium labels to private labels today’s shopper has more product choices than ever before.  If you’re not utilizing in-store marketing to put your product on display you’re likely losing out in the battle at the shelf to get your product into the shoppers basket.  The study found that nearly 1 in 6 brand purchases are made when a display with that brand is present in store. The product categories in supermarkets with the highest brand lift were toaster pastries, pickles/relish, dishwashing soap, and pet supplies.

Overall, a clear pattern emerged suggesting that displays in general are best targeted to a core group of loyal, female stock-up shoppers, even when she shows elements of high degree of pre store planning in the form of list making and circular use.

Retailers are not fully maximizing the multitude of opportunities that exist to enhance the in-store experience.
Today’s shopper spends less time but significantly more dollars during his/her shopping trip. Whether it’s using easy to find product displays in secondary locations or working with brand marketers to develop customized in-store display materials to reflect the unique retail environments, retailers have plenty of opportunity to turn their in-store marketing up a notch. It is worth noting that in 1995, 47% of displays were placed in secondary locations. By 2012, this number has risen to 60% as retailers have embraced the notion of cross promoting items and locating displays away from the home aisle.

Compelling creative not only sets apart in-store marketing, but it can turn the subconscious shopper into a conscious buyer.

Today’s shopper faces an insurmountable number of SKU’s from which to choose. While most are unaware at the number of cues and visual information they are processing on a subconscious level one thing is certain — when presented with a compelling and visual display they become engaged and conscious to the value proposition being offered. When asked if they recalled seeing any in-store displays 56% of shoppers indicated that they did recall seeing in-store displays with endcap and free-standing displays being cited most frequently.

Interestingly enough a significant number of eye fixations (13%) were made on in-store displays. While this number may sound low in the field of eye-tracking and neuroscience it is quite high. Moreover, 66% of all observed grabs resulted in a purchase, which underscores the importance of capturing the shoppers’ attention and getting them engaged with the product.

Shoppers who use debit/credit cards are more susceptible to impulse purchases and make more decisions in-store.
Shoppers who choose to use non-cash payment methods find themselves with greater flexibility to spend more than they plan to – and they do.  They buy larger quantities and make more unplanned purchases than their cash paying counterparts.

Shoppers fare poorly at accurately predicting how much they are going to spend at the store today. The average shopper misjudges the amount (s)he will spend—either high or low– by 35%.  Even when accounting for impulse purchases 57% of shoppers still spend more than they planned. Not surprisingly, shoppers are least able to accurately predict how much they are going to spend on items they do not plan to buy. Those who “overspend on impulse items” do so by more than 200% of what they expected to spend on impulse buys.

“The findings from POPAI’s 2012 Shopper Engagement Study clearly tell us that as in-store and shopper marketing professionals we have some areas for opportunity and improvement,” said Richard Winter, POPAI President. “Even as other emerging mediums and technologies alter the path to purchase landscape this study underscores the importance of planning the in-store experience to win over shoppers where it matters most – the point of purchase.”

To view the complete findings from the topline report of the study, please visit www.popai.com/engage. POPAI will also be releasing supplemental findings from the 2012 Shopper Engagement Study throughout the year online and in-person as part of it’s Engaging Insights Series.

METHODOLOGY
The Shopper Engagement Study is comprised of two concurrently executed research modules. The Core Methodology included pre and post shopping interview formats with 2400 shoppers across the four broad U.S. census regions. The Secondary Module incorporates portable electroencephalography (EEG) equipment, worn by a subset of 210 shoppers while they shop. This is combined with eye tracking to tie shoppers’ physiological responses to exactly what they are looking at, eliminating such issues as recall and denial.

In addition, auditors took inventory of in-store display materials present in each store each morning prior to the start of interviewing. Data included:

•  Display Type
•  Location
•  Placement
•  Other variables
•  Category and brand the display is advertising
•  Static vs. motion
•  Product vs. no product
•  Whether it is interactive or not
•  Whether it has video or audio

Media Contact
Greg Smith
Director, Communications
+1 (312) 863-2909
gsmith@popai.com

Chicago, IL — With a prolonged recession, high unemployment, and a persistently challenging economy, the majority of U.S. grocery shoppers are looking to save money where they can. Yet when it comes to making decisions on what to buy more decisions than ever before, 76% to be exact, are being made in-store.

The Point of Purchase Advertising International (POPAI), the global association for the marketing at retail industry, today released findings from its 2012 Shopper Engagement Study.  Building upon a long line of major shopper research trend studies, dating back to 1965, POPAI’s 2012 Shopper Engagement Study once again paved the path for in-store research by adding a combination of groundbreaking EEG and eye-tracking technology to attitudinal findings and shopper interviews in-store.

So what does today’s shopper look like compared to the shopper of yesteryear?  The study found five key findings that in-store and shopper marketers should note when developing and implementing shopper programs.

Today’s Shopper: Making more decisions in-store than ever before.
Today’s shopper is more empowered than ever before to make educated and responsible buying decisions, but surprisingly it turns out that more shoppers are utilizing in-store marketing and branding cues to make an overwhelming portion of their purchase decisions.  Today’s in-store decision rate has reached an all time high of 76%. To determine the in-store decision rate purchases are broken down into four different categories – Specifically Planned, Generally Planned, Substitutes, and Unplanned.  The in-store decision rate is calculated by taking the sum of the purchases that fall under Generally Planned, Unplanned, and Substitutes categories.

The in-store decision rate is one of the most reliable measures because it is based upon pre and post shopping interviews — what the shopper anticipated to purchase versus what they actually purchased.  Given the uptick in this key metric it is clear that retailers and brands who fail to provide the in-store marketing and education the shopper seeks out risk pushing shoppers into the arms of retailers and brands who are embracing in-store marketing.

If you’re not putting your brand on ‘display’ you’re less likely to put your brand in the shopper’s basket.
From organic labels to premium labels to private labels today’s shopper has more product choices than ever before.  If you’re not utilizing in-store marketing to put your product on display you’re likely losing out in the battle at the shelf to get your product into the shoppers basket.  The study found that nearly 1 in 6 brand purchases are made when a display with that brand is present in store. The product categories in supermarkets with the highest brand lift were toaster pastries, pickles/relish, dishwashing soap, and pet supplies.

Overall, a clear pattern emerged suggesting that displays in general are best targeted to a core group of loyal, female stock-up shoppers, even when she shows elements of high degree of pre store planning in the form of list making and circular use.

Retailers are not fully maximizing the multitude of opportunities that exist to enhance the in-store experience.
Today’s shopper spends less time but significantly more dollars during his/her shopping trip. Whether it’s using easy to find product displays in secondary locations or working with brand marketers to develop customized in-store display materials to reflect the unique retail environments, retailers have plenty of opportunity to turn their in-store marketing up a notch. It is worth noting that in 1995, 47% of displays were placed in secondary locations. By 2012, this number has risen to 60% as retailers have embraced the notion of cross promoting items and locating displays away from the home aisle.

Compelling creative not only sets apart in-store marketing, but it can turn the subconscious shopper into a conscious buyer.

Today’s shopper faces an insurmountable number of SKU’s from which to choose. While most are unaware at the number of cues and visual information they are processing on a subconscious level one thing is certain — when presented with a compelling and visual display they become engaged and conscious to the value proposition being offered. When asked if they recalled seeing any in-store displays 56% of shoppers indicated that they did recall seeing in-store displays with endcap and free-standing displays being cited most frequently.

Interestingly enough a significant number of eye fixations (13%) were made on in-store displays. While this number may sound low in the field of eye-tracking and neuroscience it is quite high. Moreover, 66% of all observed grabs resulted in a purchase, which underscores the importance of capturing the shoppers’ attention and getting them engaged with the product.

Shoppers who use debit/credit cards are more susceptible to impulse purchases and make more decisions in-store.
Shoppers who choose to use non-cash payment methods find themselves with greater flexibility to spend more than they plan to – and they do.  They buy larger quantities and make more unplanned purchases than their cash paying counterparts.

Shoppers fare poorly at accurately predicting how much they are going to spend at the store today. The average shopper misjudges the amount (s)he will spend—either high or low– by 35%.  Even when accounting for impulse purchases 57% of shoppers still spend more than they planned. Not surprisingly, shoppers are least able to accurately predict how much they are going to spend on items they do not plan to buy. Those who “overspend on impulse items” do so by more than 200% of what they expected to spend on impulse buys.

“The findings from POPAI’s 2012 Shopper Engagement Study clearly tell us that as in-store and shopper marketing professionals we have some areas for opportunity and improvement,” said Richard Winter, POPAI President. “Even as other emerging mediums and technologies alter the path to purchase landscape this study underscores the importance of planning the in-store experience to win over shoppers where it matters most – the point of purchase.”

To view the complete findings from the topline report of the study, please visit www.popai.com/engage. POPAI will also be releasing supplemental findings from the 2012 Shopper Engagement Study throughout the year online and in-person as part of it’s Engaging Insights Series.

METHODOLOGY
The Shopper Engagement Study is comprised of two concurrently executed research modules. The Core Methodology included pre and post shopping interview formats with 2400 shoppers across the four broad U.S. census regions. The Secondary Module incorporates portable electroencephalography (EEG) equipment, worn by a subset of 210 shoppers while they shop. This is combined with eye tracking to tie shoppers’ physiological responses to exactly what they are looking at, eliminating such issues as recall and denial.

In addition, auditors took inventory of in-store display materials present in each store each morning prior to the start of interviewing. Data included:

•  Display Type
•  Location
•  Placement
•  Other variables
•  Category and brand the display is advertising
•  Static vs. motion
•  Product vs. no product
•  Whether it is interactive or not
•  Whether it has video or audio

About POPAI
Since 1936, POPAI (Point of Purchase Advertising International) has served as the leading international advocate and voice of the marketing at retail industry. Comprised of chapters worldwide and serving more than 1,700 members internationally, POPAI promotes, protects and advances the broader interests of the marketing at retail community through original research, certified education, showcasing industry excellence, trade forums and protecting intellectual and legislative rights. For more information, please visit http://www.popai.com

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Join POPAI as we share back the findings from our 2012 Shopper Engagement Study in our Engaging Insights Series being held in cities all across North America.

Decisions, Decisions Too Many Decisions: A Look at Decision Rates and Which Categories Are Pushing The Impulse Button

Today’s supermarket shopper encounters an average of 38,000 SKU from which to browse and select during his/her trip to the grocery store.  That’s a lot of decisions to be made! Join POPAI for an insightful look at the categories that are pushing the impulse button and those that are failing to inspire shoppers resulting in a loss of sales.

Engaging Insights Series Networking Reception

Following the seminar be sure to join us for a networking reception as part of POPAI’s Engaging Insights Series tour sharing the latest findings and insights from POPAI’s groundbreaking 2012 Shopper Engagement Study.

Register today to get an exclusive look at the results and interact with the experts who were there every step of the way.

Those pictured who tested the ultimate driving machine include:  Chris Bull, CEO, TDC INstore; Don Hubbard, President, The Niven Marketing Group; William Carafello, President, TransWorld Marketing; Tom Petroni, President,TDC INstore; Scott Eisen, President, Ideal; Rich Carrigan, President, United Displaycraft; Neal Wickert, President, Baird Display; John Cochran, Sr. VP, RockTenn.

The first day of Meetings, Co-Chaired by Carrigan and Eisen, meant a ‘sharing’ of knowledge from each of the PLC Committee members as far as how their respective companies are doing in sales, capital expenditures, trends within the at retail industry, sales force growth and sales/hit production, what keeps them up at night and more!

Following a group dinner, the next day began early with a BMW plant tour of the 98% automated body shop and assembly line.  Over 500 robots ranging from 12-15’ inches in height soared above so that our safety was ensured for the walking experience.  We had all witnessed the birth of a BMW!  The afternoon was spent tearing around the track at the BMW Performance Driving School….learning how to brake, drift, skid, accelerate and accelerate some more!  As BMW states, “There’s no other school like it.  Unless you count that one for astronauts.”

The next PLC Committee meeting will be in Chicago, IL in October!  To attend and learn more, contact POPAI’s Office Administrator, Jessica Wells, jwells@popai.com .

Accent Industries was established in 1973 in Illinois and moved to its current 40,000 square-foot manufacturing facility in Kenosha in 2002. Dave Shaw, the president of Accent Industries, has owned the company since 1975 and will be staying on as the general manager of Accent. The Accent Industries name will be preserved and the company will be integrated as a division of Process Retail Group. Process Retail Group plans to retain all Accent employees in Kenosha and grow the operation.

“The acquisition of Accent Industries will now provide our clients with integrated in-house wood and metal manufacturing capabilities to go with our existing screen printing, digital printing, vacuum forming, plastic fabricating, mass assembly, and logistics capabilities,” says Process Retail Group President Bob Zanotti.

“These capabilities, coupled with our robust front-end design and retail development services, will give major brands and national retailers lower program production costs, improved speed to market with both prototypes and production work, and provide stronger manufacturing process controls in the execution of national rollout retail programs,” Zanotti adds.

Both Process Retail Group and Accent Industries are privately held, and while both produce permanent displays and fixtures for retail environments, the companies do not currently share the same customer base and have never competed. Accent Industries has historically specialized in front-end systems for grocery stores including check stands and cash-wraps which are custom-designed and produced in-house. The company also designs and produces merchandising tables and custom retail fixtures for a variety of other retail environments.

According to Shaw, Process Retail Group is the perfect fit for Accent Industries as he considers his eventual retirement. “I was looking for a company that would build on what we have and take it to the next level,” he says. “Accent customers will now have very strong retail design and custom fixture development capabilities. Process Retail Group is a very well-run and financially solid company with a strong national sales presence.”

“Most of all,” Shaw continues, “I have been impressed with the ‘people first’ business philosophy of the company. Process Retail Group is a perennially recognized top employer in southeast Wisconsin and will be a great place to work for our Accent employees. Given our close 40-minute proximity in location, I can’t think of a better fit.”

Process Retail Group originated in 1929 as Process Displays in Milwaukee as a sign shop and quickly evolved into a producer of in-store displays for national brands. Since 2001 under the leadership of Bob Zanotti, the company has transitioned into an integrated retail environments company providing total retail project design, manufacturing, and logistics services. The company has quadrupled in size over the last ten years and moved into its new LEED-certified headquarters in New Berlin, WI 18 months ago.

“Accent Industries is a natural extension of our company,” Zanotti says. “Our front-end retail design group provides very strong retail development services to customize retail spaces and optimize the shopping experience.” He adds, “We have some of the top designers, engineers, and model makers in the industry. Additionally, we already subcontract a lot of wood and metal production. Accent will provide some internal manufacturing capability, but we will still need our local wood and metal suppliers to provide additional capabilities and capacity.”

Process Retail Group maintains a lean manufacturing operation and financial model to best serve the demands of a job shop manufacturing operation. The company scales up and down with fluctuating volumes by outsourcing a portion of its manufacturing to a highly developed network of local and foreign manufacturing suppliers.

“We will use the Accent Industries name as our fourth retail market segment specializing in checkouts and merchandising fixtures for grocery store environments,” Zanotti explains. In addition to Accent Industries, other Process Retail Group divisions include Edge In-Store™ (custom retail fixtures and environments), Process Merchandising Systems™ (custom at shelf merchandising systems for grocers and CPGs), and Process POP™ (custom branded signage and displays).

“Our model offers our customers the best of both worlds: Strong control of the design and development of their retail space along with industry-best production pricing,” concludes Zanotti. “Our goal is to be the industry leader in the execution of complex national retail programs for major brands and national chain retailers.”

About Process Retail Group

Process Retail Group has been partnering with top national brand marketers and retailers for more than 80 years. With its mission of Creating Results™, the company’s dedicated team develops innovative retail fixture, display, and signage programs that drive brand awareness and create a distinct in-store shopper experience—with the ultimate objective of increasing sales at retail. From design to engineering, manufacturing, and logistics, brands and retailers can leverage the integrated services of Process Retail Group from project start to completion. In addition to other coveted industry and design awards, Process Retail Group is consistently recognized as a top workplace in southeastern Wisconsin.

Members of the media can contact Tina Chovanec at 414.235.3371 or tina@eatcakecommuncations.com. Process Retail Group, Inc. can be found on the Internet at: www.processretailgroup.com.

Personal income grew 0.4 percent following a 0.3 percent gain in February. But after-tax income when adjusted for inflation increased just 0.2 percent in March. The gain followed two months of declines.

Consumer spending, which accounts for 70 percent of economic growth, rose 2.9 percent in the January-to-March quarter — the fastest pace in more than a year. The increase was a bright spot in an otherwise weak first quarter for economic growth.

In March, consumers spent 0.9 percent more on nondurable goods, like clothing. Spending on durable goods, like cars and appliances, fell 0.3 percent.

An inflation gauge tied to consumer spending rose a modest 0.2 percent in March. Over the last 12 months, the index is up 2.1 percent, just above the Federal Reserve’s 2 percent inflation target

Some economists worry shoppers cannot keep spending as freely as they did in the first three months of this year without bigger pay raises. After-tax income rose just 0.6 percent in the first three months compared with a year earlier. That was the smallest pay increase in two years.

The Claritin/Coppertone Health and Wellness Pallet, which recently debuted at Walmart locations across the United States, establishes Walmart as the place to purchase sun care protection and allergy relief year-round.

The Claritin/Coppertone Health and Wellness Pallet features an assortment of both Claritin Allergy products and a wide assortment of Coppertone products which provide suncare protection for the entire family.

“The design accommodates both Claritin PDQ’s and open stock Coppertone suncare products and places them in the very effective, high-traffic Action Alleys in the front area of Walmart stores,” explains Gary Forman, President of Henschel-Steinau. “The program’s design is a fresh approach to providing this type of Health and Wellness solution in the Walmart stores to capture impulse sales in out-of category locations.”

Graphic panels located at the top of the pallet help educate shoppers on both product lines and guide them through the selection process based on product benefits.

The multi-material design of the display, using a bookcase structure created from MDF as well as vacuum-formed, color-matched styrene side panels & header mask, meets Walmart’s sustainability initiatives, with the semi-permanent structure cutting down on the amount of corrugated displays which would be used over the almost one year intended lifespan of the program.

“Henschel-Steinau has made a commitment to sustainable design and creating designs that minimize the amount of materials which are used in all of the multi-material programs that we create for Walmart and other retailers as well,” said Forman.

The Claritin/Coppertone Health and Wellness Pallet is easy to set up in-store and also features a unique angled top to prevent shoppers or retail employees from placing products at the top of the display which do not belong, including those of the competition. This approach helps to protect the brand’s investment in capturing the critical long-term space at Walmart stores.

“Given our growth in direct selling relationships with retailers stemming from the explosive success of our EZ Load® line of spring-loaded, shelf and category management systems and our extensive catalog of stock display programs, we created a division specifically dedicated to addressing the challenges that today’s retailers are facing at the shelf,” Forman said. “This is a logical extension of our business that allows us to provide both custom in-store shopper marketing solutions to brands and direct retail solutions as well,” he added.

Forman also announced that Jim Cusmano, an industry veteran with more than 30 years of experience working on in-store programs for brands and retailers, has been appointed the Vice President of Retail Systems. Formerly Vice President of National Accounts at Henschel-Steinau, Cusmano will be responsible for all operations related to the company’s various stock and shelf systems including EZ Load, EZ Roll  and other patent pending retail initiatives.

“With a background in industrial design, Jim has been instrumental in working with our creative team in the ongoing refinement of our retail systems product line over the last five years,” Forman added. “We’re excited that he will continue to work in partnership with our retail partners who have embraced the EZ Load System and are exploring the expansion of the systems throughout their stores.”

The patented EZ Load suite of products has gained in popularity internationally since its launch more than five years ago thanks to its ability to manage inventory on shelf and also reduce labor costs associated with blocking and restocking by retail personnel.  The systems are currently in use at retailers in the Ahold, Delhaize and Supervalu chains as well as at Sobeys, the second largest food retailer in Canada.

For more information, visit www.hspop.com.

Major chain stores posted a healthy 4.3% sales increase in March compared with the same month a year earlier, beating analysts’ expectations of a more modest 3.5% rise. Discounters, teen retailers and apparel sellers all posted healthy sales increases, according to Thomson Reuters’ tally of 20 retailers.

Top performers were a mixture of high- and low-end stores. Action-sports chain Zumiez Inc. led the way with a 14.1% bump. Benefiting from a continuing thrifty mindset, off-price retailers Ross Stores Inc. and TJX Cos. both reported a strong 10% increase. Luxury retailer Nordstrom Inc. saw sales rise 8.6%. Gap Inc., which has been struggling in the past year, beat expectations with a robust 8% jump.

Other retailers did not fare as well. Struggling teen clothier Wet Seal said sales fell 7.8%, while drugstore chain Walgreen Co. reported a 6.8% drop.

All told, about 59% of retailers beat expectations, Thomson Reuters said. Results are based on sales at stores open at least a year, known as same-store sales and considered an important measure of a retailer’s health because it excludes the effect of stores’ openings and closings.

Many retailers benefit from a boost in March as students shop for spring break and families buy clothing and accessories in advance of the Easter holiday.  Analysts say a more accurate picture of Americans’ spending will emerge after April because an earlier Easter holiday this year likely pushed some sales into March.