Research from Counter Intelligence Retail (CiR) commissioned by Hershey World Travel shows low conversion rates in North American duty free and travel retail. At 30% these were considerably below either South America (46%) or the rest of the world (43%).

According to the study, only 25% of North American shoppers visit the confectionery section [compared to 27% of South Americans and 28% in the rest of the world], with just 7% going on to purchase. That is very low compared to 12% of South Americans and rest of the world shoppers who will go on to buy.

On the plus side – but just a marginal benefit – is that North Americans’ average spend is slightly better than the rest of the world at $26 (compared to $25).

‘INSIGHTS INTO ACTIVATION’

“These are insights that we can turn into activation to increase confection category sales,” says Hershey Company Regional Director Europe and Strategy for World Travel Retail, Amy Wilson.

“It’s clear from the research that good quality (at 43%) is a key purchase driver for North American shoppers yet the percentage who buy is significantly lower than in other parts of the world.”

She adds: “There’s clearly an opportunity that we are missing here, both in terms of attracting more shoppers to the confectionery sales area and then converting them into buyers. In Orlando [at the IAADFS convention] we will be discussing with retailers our strategies to improve these figures through shopper engagement and retail activations.”

The CiR study covers multiple topics to do with DF&TR confectionery in North America ranging from purchasing motivations, average spend and gifting/self-purchase behaviour. Other highlights can be seen in the infographic below.