The endless drive toward portable gadgets is maintaining
demand in a category with potentially great margins for retailers.
- Make sure you have AA and AAA always available (86% of sales)
- Have a range of power options to allow consumers to trade up
- Have the fixture clearly visible near the counter – impulse sales are high
- 40% of annual sales are over the festive period – make sure you don’t miss out
It seems that everybody has an MP3 player, a digital camera or some sort of portable game player, and they all need batteries to power them and although new technology is generating widespread demand for a range of specialised lines, the big sellers remain AA (70% of all sales) and AAA (16%). 9V, CF and D account for a further 6%.
Pricing is tricky. Customers will assume (if they don’t already know you) that your batteries will be “expensive” and they may well be. However, you can overcome this unwelcome perception without giving margin away in a number of ways.
Firstly, stock a range of products that covers a standard offering as well as a premium option. Many manufacturers are even giving you the chance to trade up to super premium. By showing these and giving the customer choice you are giving the all important perception of value. If the consumer chose to spend more on a more powerful product, he will not be so quick to see it as expensive.
Secondly, larger, lower price packs (12s rather than 4s) mean that retailers can push up their customer basket size and their cash margins where their customer demographic allows it.
Batteries are highly seasonal with 40% being sold over the festive season.
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