Industry:
Convenience Store Chain (500+ stores)
Location:
United States (Confidential)
Products Used:
- C-Channel down lighting – standard shelves and peg hooks
- Q-Channel up and down lighting – top shelves and sections with pusher trays
Lighting Footage:
1,384 linear feet
Total Investment:
$15,490 (lighting, freight, and installation cost included)
Project Overview
A large convenience store chain with over 500 locations sought an affordable way to modernize their stores, improve the shopping experience, and increase sales. Facing new competition in their marketing area, they needed a cost-effective solution that would allow them to refresh the stores without undergoing a full renovation.
Challenge
The chain needed to enhance its stores’ atmosphere and customer experience to remain competitive, especially with customers who could choose to shop at other convenience stores. The existing stores are dated, and a complete renovation was not feasible due to budget constraints. The chain needed a solution that would:
- Improve the overall shopping environment
- Make the products on lower and upper shelves more visible and appealing
- Provide an affordable and efficient way to achieve these goals
Solution
On-shelf illumination using C-Channel and Q-Channel products was installed throughout the store to emphasize product presentations and create a fresh, updated look. This approach improved visibility of the merchandise, particularly on lower shelves, which are typically harder to see. The lighting solution was implemented without major store alterations or high costs, providing an instant aesthetic upgrade.
Results
- Dollar Sales Increase: 7.4% sales lift (vs. same time period the previous year) directly attributed to the lighting enhancements.
- Unit Sales Increase: 4.8% vs. same time period the previous year (1)
- Cost of Lighting: $15,490 including all lighting, freight, and installation
- Profit Increase: $57,540 (2)
- Payback Period: 98 days to recoup the store’s lighting investment. (3)
- Enhanced Shopping Experience: Customers perceived the store to be more modern and organized, with well-lit products that appeared fresher and more appealing.
- ROI: 3.7% over 1 year, 18.5% over 5 years (4)
(1) Unique transactions were used to control for shopper count fluctuations thereby equalizing test vs. control stores.
(2) Profits based on increase in unit sales x 27.5% average gross profitability.
(3) Days to pay back = Cost of lighting implementation / net increase in profit per day.
(4) 5-year ROI assumes permanent unit sales increases remain constant.
Why Lighting?
The store chain chose lighting as its primary remodeling tool because it provided immediate results at a fraction of the cost of traditional renovations. By focusing on illuminating the products rather than changing the physical structure of the store, they were able to create an updated, brighter shopping environment. This not only improved the customer experience but also boosted product visibility.
Conclusion
The implementation of on-shelf up and down lighting proved to be an efficient, cost-effective way for the convenience store chain to enhance the shopper experience and drive profits. With a quick return on investment and a significant lift in both sales and customer satisfaction, the lighting upgrade is now a key component of the chain’s strategy for continued growth and store improvements.
Interested in trying out this investment? Contact us for a custom quote.
