Hershey Identifies How Convenience Retailers Can Win at the Shelf
The Hershey Co. understands the importance of strong collaboration with retail partners, especially within the convenience segment, to elevate shopper engagement through tactical merchandising strategies.
"To drive success in this channel, we work closely with retailers to apply key shopper insights and elevate the overall shopping experience," Daniel Toole, VP of small format at Hershey, wrote in a recent company blog.
Also: Hershey advances decision intelligence across the supply chain
The challenge is a consumer trend toward smaller basket sizes and fewer visits due to higher fuel costs, inflation and changing lifestyles. Therefore, said Toole, bundling is a key strategy. Circana reports that 9 out of 10 shoppers purchase an additional item with their convenience store selection, with candy being one of the most common add-ons.
"Through compelling promotions, impactful imagery, clear signage and strategic merchandising, we’re helping retailers create bundle solutions that not only deliver value but also encourage shoppers to try new items," he said.
Hershey leans on two approaches to drive growth via promotions, which include:
Everyday Multiple (EDM): Encourages multi-unit purchases and rewards loyal shoppers by delivering consistent value. The company has been using this strategy particularly on king and standard pack types to boost unit conversion year-round.
"Clear signage with shelf strips, blades and danglers ensures shoppers don’t miss the deal," said Toole.
Hi-Lo Promotions: Toole said these offers generate strong incremental sales and attract non-loyal shoppers.
"By running promotions for four to six weeks and aligning them with peak sales periods, we can help retailers drive meaningful lifts while keeping baskets fresh and engaging," he added.
[Also: Church & Dwight tackles phantom inventory with AI-enabled merchandising]
Presentation should be a core part of the retail execution strategy. Toole recommended that convenience retailers organize aisle flow based on shopper insights, grouping products by usage occasion and type, and leaning on vertical merchandising to further enhance visibility.
"Convenience stores are a unique environment — fast-moving, mission-driven and packed with opportunities to capture shoppers in the moment," said Toole. "For us, the channel represents not only a critical driver of growth but also a launchpad for innovation, merchandising strategies and shopper engagement."
This was originally published on P2PI, a CGT sister publication.
