Managing vs. Filling Spaces

By Tony Corsberg, Principal, Merchant5 Advisors

One of the most economical ways to increase sales is by increasing the average transaction size of the customers already in the store. Promotional space management is a valuable tool for achieving this, as it contributes to the overarching objective of merchandising management to increase sales, optimize the inventory and maximize the retail selling space performance.

Typically endcaps and stackouts are used for items that are being advertised or are new or project ideas, but instead of just filling these spaces, intentional tactics should be established for assortment, pricing and presentation to increase the average ticket size. These positive results were validated in NHPA’s 2025 Merchandising for Profit Study, which confirmed the management of promotional space increases sales and units sold.

Each of the primary promotional spaces provides an opportunity to motivate impulse purchases while customers navigate the store. Here are tips for managing these spaces.

1. Entryway

As the first thing a shopper sees after transitioning through the decompression zone inside the front door, it should greet customers with an impactful presentation of the right merchandise, priced to communicate value and urgency. Don’t greet customers with a random stack of miscellaneous special buys, clearance specials or a service counter. Impress them with relevant merchandise that is priced right.

2. Power Aisle Endcaps, Stackouts, 4-Ways and Dump Bins

The power aisle is a communication superhighway to communicate the retailer’s value proposition with relevant merchandise and value pricing. Don’t overcomplicate the assortment—less is more and one SKU can be best in these spaces. Shout out a great price that is available for a limited time.

3. Sidekicks and Clip Strips

Keep these simple with a single item or price point. Packaging needs to be recognizable and relevant to the destination product in the area. Price these competitively with a high gross margin percentage.

4. Free-standing Satellite Displays

Be intentional with the placement of these factory-supplied displays. Don’t clutter or obstruct the traffic flow with randomly placed displays—be intentional.

5. Service Counters

Products should relate to the customer’s time at these service counters and be impulse-oriented and priced accordingly. The placement should be intentional, not just clutter on the counter.

6. Checkouts

Queuing checkouts have become very popular. Use 60” tall fixtures to create an easy-to-navigate valley of merchandise such as snacks, incidentals and consumables that appeal to a large audience. Aim for low price points for an easy purchase decision.

The retailers who have intentional strategies with specific guidelines and expectations see positive results. They measure the performance of these spaces and continually improve the execution tactics. These disciplines will increase sales and closure rates, raise the average transaction values and create a more complete shopping experience.

The promotional spaces are there, and the products are available. It’s the retailer’s intentional execution that puts it all together.