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Nestlé and Schiphol Airport Retail simplified the messages around confectionery in the pilot store at Amsterdam Airport Schiphol, which helped deliver increases in sales value, spend per head and average transaction |
NETHERLANDS. The latest phase in Nestlé International Travel Retail’s (NITR) Perfect Store drive – a project with Schiphol Airport Retail – saw sales and average transaction values rise sharply at the retailer’s pilot store in Lounge 2 during December.
As reported, Nestlé has developed a major body of research about the shopper journey and insights into the challenges of maximising penetration, conversion and average basket size. Now the brand owner is putting its solutions into practice with selected partners across the industry worldwide, through the Perfect Store initiative.
With Schiphol Airport Retail (SAR), NITR focused on boosting levels of conversion through improvements to in-store signage – a key factor influencing spend.
Through its research, NITR found that signage and communication often hinder rather than help consumer understanding of confectionery. One key insight was that shoppers spend just 3% of their time in the confectionery category engaging with in-store signage, meaning the messages need to be sharp, simple and to the point.
Colour is also a powerful signpost for product navigation, and the brand owner is changing its POS in-store to react to this knowledge.
At Schiphol, the solution NITR provided was to apply the “˜one second rule’, whereby customers should pick up on and instantly understand in-store messaging.
New signage, drawing on NITR’s Perfect Store principles, was introduced to the SAR store in December, with simpler, colour-coded messages for sub-categories such as sharing and gifting. The move helped deliver an uplift in confectionery sales values of +7.8% in December compared to the previous month, with spend per head rising by +6.5% and average transaction values by +4.5% for the same period.
NITR Customer Marketing Manager Alan Brennan said: “It is evident that the simple colour-coded signage has improved shopper navigation and ease of shop within the category, and ultimately converted more shoppers to buyers. This is borne out both by the quoted month-on-month increases and the year-on-year category value sales growth.
“Other key performance indicators such as SPH and ATV also increased despite the difficult economic trading environment and shopper apathy. This is reflected in the premium category performance in December, which outpaced other stores by 360 basis points.
“Aligned with the Perfect Store building blocks, the new in-store signage has converted more shoppers to buyers.”
Note: Roland Stieger, Head of Sales at Nestlé International Travel Retail, will address some of the key findings from the company’s research during a panel discussion involving leading brand owners at next week’s Trinity Forum in Seoul.
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The partners applied the “˜one second rule’, whereby customers should instantly understand in-store messaging |
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