Intense competition in the (fast-moving consumer goods) FMCG sector has prompted manufacturers and marketers to rely more heavily on point-of-purchase displays, an antecedent manipulation of the retail setting, to stimulate sales. Retailers, on the other hand, have become more discerning about the number and types of displays they will allow in their stores. There has been limited research on point-of-purchase displays in South Africa. This paper therefore examines retailers’ perceptions of point-of-purchase displays. Being an exploratory study, a survey was conducted among 100 supermarket owners and managers using a quantitative approach. It emerged that respondents believed that point-of-purchase displays drive in-store sales and contribute to retailers’ profits, as well as drive impulse purchases. It was found that point of purchase displays create an interactive retail experience, create brand loyalty and alone can drive sales without a price reduction. The results also indicate that point-of-purchase displays lead to clutter in stores and that marketers’ bargaining power influences point of purchase decisions in stores. Of concern was the perception that point-of-purchase displays did not cater for low literacy consumers.
Point-of-purchase displays in the FMCG sector: A retailer perspective