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Magazines Push Back On "Big Candy" In Checkout Lines

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"the Mars/Wrigley PR machine goes on to explain that three supposed “mindsets” relating to checkout (wherever checkout may occur). And that (in a self-serving leap of logic) the so-called “refresh” and “reward” mindsets somehow demand that all but 10% of transaction space is devoted either to items “like gum, mints, beverages and snacks,” or items “like chocolate and non-chocolate candy.” As for the last 10% of transaction space, that should be devoted to “remind” items (the third “mindset”), “like batteries and lip balm,” declares Mars Inc.

The reality — as documented by the Willard Bishop Total Solutions SuperStudy of June 2015, as well as other retail research — is that the magazine category continues to outperform candy (and other categories) at checkout in terms of profitability.

Magazines generate 4X the gross profit ($1.64 per unit) of candy at the front end, and each magazine generates 5X the revenue per SKU as a candy SKU. (In addition, the magazine category is close behind candy in terms of the percentage of front-end checkout sales generated, per the Bishop study.)

In fact, magazines are the most profitable item at checkout ($1.07 true profit per unit), period. Importantly, they also rank 14th in true profit per unit across 229 total store categories.

As for consumer mindsets, other research has shown that magazines are #1 on women’s list of affordable treats, and that 24% more shoppers say it’s more important to carry magazines than candy at the checkout.

I didn't realize that magazines were more profitable than candy. Wow.

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