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What Makes for a Good In-Store Demonstration?

Tuesday, January 26th, 2010

retail-sampling-imageThere is a lot of news about Sams Club outsourcing product demos (see article by Chris Burritt at Bloomberg for just one of many examples).

In this article, I read a quote I don’t entirely agree with.

“Sampling mitigates risks for brands,” says VP and gm Brian Pear. “It’s less risky for mom because she’s able to sample it for free.”

Having reviewed and analyzed the sales data for 100+ retail brands over the past four years I have to say that this simply is not true for all brands.  There is a lot that needs to be in place for an in-store sampling experience to directly create incremental sales.
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January 2010 Consumer Spend Appears Down

Monday, January 25th, 2010

2010 retail sales forecast
I’ve measured typical retail sales in January to be roughly 8.3% of the year’s total take.

When compared to December (the previous month) we’d expect to see January retail sales down around 16.2%. Not as bad as you’d expect but driven by due giftcard spending. (It usually gets steadily worse and bottoms out in May then takes a U-turn in June with “Dads and Grads”).

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