1. The Power of Magazines
Magazine margins are higher than
average grocery and store margins.
11%
10%
15%
29%
27%
34%
Total Store
Grocery
Magazines
Adj Gross Margin True Margin
Magazines provide twice the per-unit
profit and a third of the labor cost vs.
other major Front-End categories.
Source: WILLARD BISHOP, 2013
$0.12
$0.27
$0.31
$0.65
$0.53
$0.54
$0.65
$1.56
Candy
Gum
Snacks
Magazines
Unit Adj Gross Profit Unit True Profit
Magazines
35.70%
Candy,
14.70%
Gum,
14.00%
Beverage
13.10%
Other,
17.70%
Share of Checkout Profits
Magazines generate 2x more profit
than any other checkout item.
Your shoppers’ market baskets are
86% larger when she purchases a
magazine.
Source: Front End Focus
$30.44
$56.62
Avg. Grocery Basket
Avg. Magazine Basket
2. >
Retail
Price:
$4.99
Retail Price:
$1.58
20 oz. bottle
or or
Retail Price:
$.58
or
Retail
Price:
$1.04
Retail
Price:
$0.96
Secondary Displays Significantly Reduce
Time Spent Viewing the Primary Display,
resulting in a 41% reduction in checkout sales
Front-end Focus
Measures
Magazines Carbonated
Drinks
No. of shoppers 48% 45%
Frequency 38% 52%
Impulsiveness 90% 56%
•90% of Magazines are purchased on impulse!
•The limited sales gain from secondary displays
does not make up for lost magazine and soft
drink sales
Front End Focus, 2013