(Published in June 2008)

Chew On This
Tips for displaying dog treats and chews to increase sales.
By Scott and Ann Springer

Some may say it’s impossible to bite off more than you can chew in the increasingly popular treats and chew category, but retailers who use effective display and merchandising techniques could see above average sales of these repeat sales staples.

Dog owners spent an average of $66 per year on treats in 2007-2008, according to the American Pet Products Manufacturers Association, Inc. National Pet Owners Survey. This category has seen a seven percent increase in sales since last year, according to the same APPMA survey.

The treat and chew category is one of the most profitable segments at Rick French’s retail shop, The Animal Company, in San Francisco, Calif.. "Dog treats are one of my top selling items as far as both volume and margin," French says.

Even in his small, 800-square-foot shop French has managed to find enough shelf space to stock over 100 different varieties of treats.

So Many to Chews From
Treats and chews come in more varieties than Fido could ever dream up – everything from popcorn to pastries to traditional rawhide chews, says Bob Kramer, the president of Canine’s Choice, Inc., a Marion, Ind.-based manufacturer.

With so many products on the market it may be difficult for retailers to merchandise their chews and treats category to get the return on inventory that they expect. But some retailers have overcome this obstacle by taking steps to improve their displays.

First, a retailer should note that appearance is everything, especially when it comes to edible items. Kramer suggests keeping things neat and tidy, as well as tossing treats that are near to or past their expiration dates.

"Buy in smaller quantities so you can always have fresh products for your customers," says Brenda Mason, the vice president of sales and marketing for TreatCo, a manufacturer located in Wichita, Kan.

Next, retailers should remember when selecting inventory that many of the old stand-bys just don’t cut it for most customers anymore. "People are looking for something more sophisticated and they expect more than just a typical piece of rawhide," Kramer says.

Some treats available on the market have a secondary function, such as cleaning teeth or providing supplemental nutrition. There are plenty of non-functional treats that are merely for pleasure, too, says Darlene Frudakis, the president and COO of PetAg Inc., in Hampshire, Ill.

Display Tips
Introducing new treats at the register is French’s favorite method for testing out new items. "Many people have tunnel vision, and if they don’t see something in front of their face they just won’t try it," French says. "People form buying habits and you have to get their attention to try something new."

French is constantly moving items around to keep inventory moving and to make space for new items. "If you move things around, and they have to look for their favorite treat, then maybe they’ll find something new," French says.

Ordering inventory by breed size makes it easier for customers to navigate the treat section and can increase sales, Frudakis suggests.

Offering multiple varieties of treats for each size category tempts customers to make multiple purchases each time they visit the shop. "They’ll look at all of the variety and say, ‘I’ll try this one and that one,’ instead of just grabbing the one in the appropriate size," Frudakis says.

Manufacturers may offer displays to accommodate many different types and styles of store interiors, Frudakis says. "By using decorative trays or signage you can attract the customer’s attention and tell more of the product’s story," Frudakis says. "The signage allows you discuss more of the value-added attributes and justify the price point."

Promotion Tips
French’s store is conveniently located across the street from a dog park and in a section of the city that has a high density of dog owners. He takes treats to the park on hot summer days and leaves treats outside the front door for neighbors out for an evening stroll with their pooch.

The service he provides to his neighborhood comes back to him with increased sales. "People will come back in and say, ‘I need some of those treats you put out the other day,’" French says.

Many manufacturers offer sales to retailers so they can in turn offer sales promotions to their clients. "Take advantage of monthly specials to introduce new products to your customers," Mason says.

Manufacturers may also donate packages of treats to be used in conjunction with other store events like Doggie Dips, Shots Days, or charity fundraisers, Mason says.

"If you can put it in front of them, they’ll buy it," Kramer says.

Five Quick Tips for Selecting Inventory:
Choose small quantities to keep treats fresh.
Stock treats for dogs of all sizes – especially the teeny-tiniest and the largest of all.
Only re-stock the best sellers so you don’t overload the shelf and overwhelm customers.
Keep the customer base in mind and select inventory that will make their mouths water.
Always keep new merchandise coming in. Customers – on four legs and two –
are always looking for something new.
-S.S. & A.S.