High margin impulse buys can help retailers boost profits

The check-out counter is the last place paying customers visit before they leave the store – and it is a retailer’s last chance to make a sale. The counter and the aisles that lead up to it are called a cash wrap, and can be arranged to entice customers to made additional purchases. A good cash wrap should incentivize impulse buys without being pushy, according to Prof. Maxime Cohen, a Professor of Retail and Operations Management at Desautels. It should include products specifically targeted at a store’s clientele – these might be novel, visually appealing, or inexpensive accessories. But whatever they are, they should have a high profit margin.