Regional product assortment and merchandising in grocery stores: Strategies and target customer segments

• Published in: Journal of retailing and consumer services Vol. 42; pp. 117 - 132
• Main Authors: Lombart, Cindy, Labbé-Pinlon, Blandine, Filser, Marc, Antéblian, Blandine, Louis, Didier
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01.05.2018; Elsevier
• Subjects: Assortment; Business administration; Humanities and Social Sciences; Loyalty toward regional products; Loyalty toward the store; Merchandising; Regional products; Retailer's local image; Regional products; Assortment; Loyalty toward regional products; Retailer's local image; Merchandising; Loyalty toward the store
• ISSN: 0969-6989; 1873-1384
• DOI: 10.1016/j.jretconser.2018.02.002

This research examines consumers’ in-store reactions to regional products. A field study has been conducted in two stores which adopt different types of visual and shelf merchandising strategies (i.e., regional products are located within their product categories with POS ads (n = 307) versus in a dedicated space with theatrical visual merchandising (n = 404)). This research shows that consumers’ perceptions of regional products assortment and merchandising (for the store where regional products are located within their product categories) have a direct impact on retailer's local image and their loyalty toward these products and an indirect impact, through these two variables, on their loyalty toward the store. This research thus points out the superior performance of the strategy of merchandising regional products within their product categories, using POS ads to identify them. This research also highlights the existence of the two groups of consumers (i.e., the “regionals” and the “moderates”) who are the most receptive to the regional products offered by grocery stores and on which retailers should concentrate their sales promotion efforts. •Regional products assortment and merchandising are important to build loyalty toward the store.•The strategy of merchandising regional products within their categories with POS ads is the best.•Two groups of consumers (“regionals” and “moderates”) are the most receptive to regional products.