Contents
- Introduction to the Golden Triangle
- Structure of the Golden Triangle
- Implementation of the Golden Triangle Rule
- Interesting Facts About the Golden Triangle
- Conclusion
Introduction to the Golden Triangle
The Golden Triangle is a strategic rule for product placement in stores that helps increase sales volumes. The main goal of this method is to extend the time a customer spends in the sales area, increasing the distance they walk from the entrance to the desired product and then to the checkout. During the time spent in the store, the customer may purchase additional items that they did not initially plan to buy, which in turn raises the store's overall revenue.
Structure of the Golden Triangle
Each of the three points of the Golden Triangle represents key locations within the store:
- Entrance and Exit: the place where the customer's journey begins and ends.
- Essential Products: the main items that customers come to buy.
- Checkout: the final point where purchases are paid for.
The interior space of the triangle is typically filled with impulse-buy items, such as candies, snacks, inexpensive household goods, and cleaning supplies. These are small and affordable products that customers often buy spontaneously, without planning their purchase in advance.
Implementation of the Golden Triangle Rule
Merchandisers who arrange products on shelves actively use the Golden Triangle principle to optimize sales. This rule allows businesses to:
- Increase the average transaction value for each purchase.
- Effectively manage sales of specific products.
- Control demand among customers.
- Increase the overall profit of the store.
For successful implementation of the Golden Triangle rule, several conditions must be met. First of all, products in the store should be divided into three groups:
- First group: products that generate 80% of sales.
- Second group: products that generate 15% of sales.
- Third group: products that make up 5% or less of total sales volume.
Products from the first group should be placed in various locations within the store to encourage customers to spend more time between shelves. All of them should be positioned at a significant distance from the entrance and the checkout. It is also important to fill the space both inside and outside the figure. Complementary products should be placed near popular items, for example, snacks next to alcohol or sauces opposite meats.
Interesting Facts About the Golden Triangle
The size of the Golden Triangle can be adjusted by the placement of checkouts in the store. If there are more than 7-10 checkouts, their layout can be modified depending on the time of day. For example, in the morning, customers are more likely to stop by for bread, which is located in the far left corner. Knowing this, the store can disable checkouts located near the bread section, thereby forcing customers to walk past numerous shelves with various products before they can pay for their purchases.
Conclusion
Applying the Golden Triangle rule in retail significantly optimizes the sales process, increasing both the average transaction value and the store's overall revenue. If a store features several groups of popular products, the structure can be expanded to a Golden Square or even a Tetrahedron, which would create additional opportunities for increasing sales and attracting customers.