FEATUREBATTERIES

20 NOVEMBER 18-DECEMBER 1 2014

betterretailing.com

Battery sales are getting their energy back. JOHN SILCOX looks at how retailers can get more of a buzz from their batteries

APPROXIMATELY two-thirds of battery purchases are impulse driven. “Shoppers pick them up in store because they saw an attractive display that reminded them, because the batteries were placed next to a related product or because they looked good value for money,” says Stewart.

This statement is universally shared

among experts and Iswarenko agrees, saying that 52% of battery sales are unplanned or prompted in-store thanks to secondary locations at the checkout or among torches or toys. “Retailers must consider improving visibility within related areas of products to ensure that batteries are front of mind with the shopper,” she says.

BUT with the wide range of different types, shapes and sizes of battery, what types should retailers stock? Iswarenko says the two most popular battery formats are AA and AAA sizes, equating for 76% of category sales, but adds: “While a vast amount of toys and devices still take these formats, some don’t. If you have space, it is well worth stocking other popular formats – 9v, C, D and 2032, which equate to £54m of sales each year.”

Anthony Stewart, sales and marketing director at Varta, agrees. He says alkaline remains the most widely used technology for the mass market. “A range that includes the main five cell sizes – AA,

AAA, C, D & 9V – will satisfy around 80% of consumer requirements,” he adds.

While the rechargable battery market is small and static, new opportunities are opening up for portable power solutions. Stewart adds: “We are more and more dependent on smartphones and tablets, and as mobile devices get smarter their battery life gets shorter. A small selection of pre-charged ready to use portable powerpacks can be ideal for convenience retailers, particularly those close to tourist areas.”

AMIT Juneja, sales director at Benross, the exclusive distributor of Polaroid batteries in Europe, makes a valid point when he says: “Shoppers are less inclined

to purchase lesser-known battery packs from an unknown brand.”

In the battery market, Duracell and Energizer are clear leaders and both continue to offer innovation to drive sales. Menna Zaglhoul says that Duracell is continuing its ongoing commitment to innovation with upgrades across its Alkaline,

Rechargeables and Speciality product ranges. Duracell is also rolling out what it claims is its best-performing Rechargeables range ever,

including the introduction of a new Premium AAA Rechargeable cell with LSD technology, as well as a

new 15-Minute Charger.Meanwhile, Energizer is addressing the 73% of battery

users who have experienced battery leaks with a new ‘No leaks. Guaranteed – or your money back’ promise

which is being supported by in-store PoS. “This message will resonate with shoppers, and help retailers to unlock

new sales,” adds Iswarenko.

THE RANGE

WHAT TO STOCKTHE OPPORTUNITY

THERE is no doubt that the battery market is in a very different place from where it was a decade ago. The kinds of devices that require batteries have changed significantly in the past 10 years, with new innovations in toys and gaming.

Mandy Iswarenko, marketing director for Energizer, says most families’ need for batteries is growing thanks to an increase in other gadgets. “The average household in the UK has a total of 17.6 devices which use batteries and each device uses an average of two batteries,” she says. “The number of devices is rising, driven by the growth in the number of children’s toys and gadgets

that require batteries, while the frequency of replacing batteries is two-to-three times a year.” This means retailers have, on average, the opportunity to sell around 100 batteries per year to each household.

Christmas provides the key sales period for category with popular presents such as audio and visual players, digital cameras, remotes and clocks making up 42% of battery consumption in the UK per year. “In the run up to Christmas retailers should merchandise batteries next to the toy and electrical products and also remind consumers when paying for their items if they need batteries,” Iswarenko suggests.

However, Menna Zaglhoul, Duracell brand manager at Procter & Gamble, says retailers should make sure they develop a strategy for the rest of the year too. She says: “We’ve made a deliberate effort to move Duracell and batteries in general away from just a seasonal uplift around Christmas. We want it to be an always-on proposition and we’ve launched innovative in-store programmes through a partnership with Microsoft Xbox.”

IF YOU HAVE SPACE, IT IS WELL WORTH STOCKING OTHER POPULAR FORMATS - 9V, C, D AND 2032 EQUATE TO £54M OF SALES EACH YEARMANDY ISWARENKO, ENERGIZER

THE DISPLAY VIEWRETAILER

“THE winter holidays are when I generally see a strong increase in sales. A lot of our customers prepare for

the festivities by stocking up on batteries to go in the

toys and gadgets they give their loved ones. In past years I tried selling cheaper, less well known brands but they didn’t shift. This year I’m definitely sticking to the market leaders.”

Pan Patel, R&J Newsagents, Eastbourne, East Sussex

52%of battery sales are

unplanned or prompted in-store thanks to

secondary locations at the checkout

the stat

LAST year, 307 million individual units were sold in the UK and in July, Nielsen reported that the market was worth £225.5m.

With the onset of winter and the

approach of Christmas, retailers are now once again looking at this traditionally strong seasonal performer with renewed vigour. In order to make the most of this opportunity, they must understand

shifting consumer trends and demands, calibrate their stock accordingly, improve their in-store product management and buy-in leading brands, as well as innovative products.

£225.5m

HAVIN’ IT CHARGE

The amount the battery market is worth