The retail industry is evolving rapidly, and brands are constantly searching for innovative ways to enter and thrive in the market.
One of the most effective methods is Scan-Based Trading (SBT), a model that shifts the traditional retail paradigm by focusing on payment upon sale rather than upfront purchasing. For sales managers and marketing directors, understanding how to leverage SBT with strategic display systems such as counter displays, floor displays, and end cap displays is critical to driving product turnover and increasing sales.
In this article, we’ll explore how Scan-Based Trading works, why it’s a game-changer for brands, and how integrating effective display strategies can optimize results.
What Is Scan-Based trading?
At its core, Scan-Based Trading is a business model in which retailers only pay for the inventory sold at the point of sale (POS). The unsold products remain the property of the supplier until scanned for purchase. This eliminates the upfront financial burden for retailers and allows brands to maintain greater control over their inventory.
Benefits of SBT for brands
- Reduced risk: Brands retain ownership of inventory, mitigating the risk of overstocking or markdowns.
- Enhanced shelf management: Retailers prioritize stocking items that sell quickly, ensuring optimal shelf space.
- Aligned incentives: Both suppliers and retailers benefit from sales performance, fostering collaboration.
However, succeeding in an SBT model requires more than just product placement—it demands a strategic approach to displays that capture attention and drive impulse purchases.
The role of displays in SBT success
Effective retail displays are the linchpin for maximizing product visibility and encouraging sales under the SBT model. Let’s look at how different types of displays contribute to this goal:
Counter displays
Located at the checkout area, counter displays are perfect for small, high-margin products. These displays capitalize on impulse buying behavior, encouraging shoppers to add last-minute items to their purchases. Examples include mini-counter displays for snacks, travel-size items, or seasonal products.
Floor displays
Floor displays are freestanding units that can be strategically placed along high-traffic aisles or at store entrances. These displays not only highlight featured products but also create a focal point that draws shoppers in, increasing their likelihood of purchase.
End cap displays
Positioned at the end of aisles, end cap displays offer prime real estate for showcasing new products or promotions. These displays are highly visible and allow brands to cross-sell or upsell by placing complementary items together.
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Why strategic placement matters
For sales managers and trade marketing directors, aligning display placement with shopper behavior is essential. Every area of the store presents unique opportunities to engage customers and boost sales:
- Checkout areas: Utilize counter displays for convenience purchases.
- Aisles: Place floor displays to disrupt the shopper’s routine and promote seasonal or promotional products.
- End caps: Leverage this space to draw attention to complementary products and drive cross-selling.
When used effectively, these displays not only enhance brand visibility but also align with the SBT model by ensuring rapid product turnover at the POS.
Ask yourself: Are you maximizing your retail strategy?
As a sales or marketing professional, consider these critical questions:
Are your display systems aligned with the shopper journey to maximize visibility and sales?
Are you leveraging impulse purchases through strategic placements like counter displays and mini-counter displays?
Have you optimized your SBT strategy to ensure rapid product turnover and profitability?
Reflecting on these questions can reveal gaps in your current retail strategy and highlight opportunities for improvement.
Aligning SBT with display innovation
Investing in custom retail displays tailored to your brand’s needs is a powerful way to complement your SBT strategy. By incorporating visually appealing counter displays, impactful floor displays, and highly effective end cap displays, your brand can create a seamless shopper experience that drives sales and enhances brand recognition.
At the same time, strategic display systems ensure that your products are placed in high-traffic areas, maximizing their visibility and increasing their likelihood of being scanned—and purchased—quickly. This synergy between SBT and display innovation is key to staying competitive in today’s retail market.
Turn retail challenges into opportunities
Scan-Based Trading represents a significant opportunity for brands to streamline inventory management and enhance collaboration with retailers. By integrating strategic display systems such as counter displays, floor displays, and end cap displays, brands can driv e impulse purchases, align with shopper behavior, and achieve rapid product turnover.Are you ready to take your retail strategy to the next level? Start by evaluating your current display systems and exploring how SBT can transform your approach to the retail market. The time to innovate is now.
