What is Point of Purchase? Meaning, Types of POP Displays and Examples
In the world of retail, capturing a shopper’s attention at the right moment can be the difference between a sale and a missed opportunity. That “right moment” often happens at the point of purchase (POP). Whether it’s a bold stand in the middle of a store aisle or a small sign near the checkout counter, POP displays are powerful tools used by brands and retailers to drive impulse buying and increase product visibility.
In this guide, you’ll learn the meaning of point of purchase, explore the various types of POP displays, and review real-world examples that demonstrate their effectiveness.
What is Point of Purchase?
The Point of Purchase (POP) refers to the area in a store where a customer makes a purchasing decision. This can be near the cash register, in an aisle, at the end of a shelf (end cap), or even in the store entrance. It’s the location where marketing materials, signage, or product displays are strategically placed to influence shoppers’ behavior.
Unlike Point of Sale (POS), which is the system or location where the transaction is completed (like a checkout terminal), POP focuses more on the marketing aspect—the strategies and materials used to attract consumers at or near the buying stage.
For example, a cardboard stand holding bags of chips near the register is a POP display meant to encourage a last-minute purchase.
Why is POP Important in Retail?
POP is crucial in retail environments for several reasons:
- Drives Impulse Buys: POP displays often showcase small, easy-to-grab items that customers weren’t planning to purchase—like gum, travel-size lotions, or snacks.
- Increases Product Visibility: New products or promotional items gain attention when highlighted at strategic points within a store.
- Educates Customers: POP materials like brochures or display signage can inform shoppers about product benefits, limited-time offers, or brand messages.
- Boosts Brand Awareness: By using customized and branded displays, companies can reinforce brand identity while engaging with potential buyers.
Types of POP Displays
There are several types of POP displays, each with a unique purpose and ideal placement. Let’s look at the most common ones:
1. Floor Displays
These standalone structures are placed in high-traffic areas like store aisles or near entrances. They are often used for promotions or to highlight seasonal products.
Example: A tall, freestanding display showcasing a new soft drink with colorful graphics and slogans.
2. End Cap Displays
Positioned at the end of an aisle, end caps are among the most valuable pieces of retail real estate. They command attention from passing shoppers and can significantly boost sales.
Example: A cereal brand occupying an end cap to promote a limited-edition flavor during back-to-school season.
3. Countertop Displays
These are smaller displays placed on counters near the checkout area. Perfect for impulse items, they offer a last chance to influence shoppers before they complete their purchase.
Example: A compact rack featuring lip balms or hand sanitizers next to a cash register.
4. Dump Bins
Open containers used to hold a bulk quantity of promotional items. Their informal presentation invites shoppers to dig through and explore.
Example: A bin filled with $5 DVDs or discounted toys during the holiday season.
5. Shelf Talkers
These are small signage elements attached to shelves, drawing attention to specific products or deals without requiring extra floor space.
Example: A shelf label that reads “New Arrival” or “Buy One, Get One 50% Off.”
6. Interactive Displays
Technology-enhanced POP displays that engage customers through touchscreens, QR codes, or augmented reality.
Example: A tablet kiosk where shoppers can browse makeup tutorials or try virtual shades before choosing a lipstick.
Designing an Effective POP Display
To make the most of POP marketing, the display must be eye-catching, relevant, and strategically placed. Here are key elements of successful POP design:
1. Visual Appeal
Bright colors, bold typography, and compelling images help your display stand out in a busy retail setting.
2. Clear Messaging
Keep messages short and benefit-driven. Highlight what makes the product unique or why the shopper should act now.
3. Brand Consistency
Ensure the display reflects your brand’s identity through logos, fonts, and color schemes.
4. Strategic Placement
Choose locations where your target audience is most likely to see the display. Near complementary products or high-traffic areas is usually best.
5. Call to Action
Whether it’s “Try Me Now,” “Limited Time Offer,” or “Scan for More Info,” include a strong call to action that encourages immediate interaction or purchase.
Real-World Examples of POP Success
1. Coca-Cola’s Freestanding Summer Displays
Each summer, Coca-Cola launches large, themed POP displays featuring coolers, sunglasses, and beach graphics. These colorful setups drive seasonal sales by tying the product to summer refreshment and outdoor fun.
2. Sephora’s Countertop Sampling Stations
Beauty retailer Sephora uses sleek, branded POP units near checkout lanes where shoppers can try mini-sized makeup products. These have significantly increased impulse purchases and introduced customers to new lines.
3. Costco’s Interactive Demo Kiosks
At warehouse giant Costco, POP displays often include live product demos. Seeing how a blender or kitchen gadget works in real-time encourages more confident—and frequent—buying decisions.
POP Displays in Different Retail Categories
- Grocery Stores: POP displays highlight snack foods, beverages, or promotional bundles.
- Electronics Stores: Used to showcase new devices, headphones, or accessories.
- Apparel Stores: Often focus on limited collections, seasonal trends, or clearance racks.
- Pharmacies: Frequently promote OTC medications, skincare items, or vitamins.
- Convenience Stores: Designed to maximize impulse purchases, especially near the register.
Challenges with POP Displays
While POP displays can be highly effective, they also come with some challenges:
- Space Constraints: Not every retail location has the same layout, which may limit where and how displays can be installed.
- Maintenance: Cardboard displays may wear out quickly, especially in high-traffic areas, reducing their appeal.
- Compliance Issues: If store employees don’t set up displays as instructed, their effectiveness can plummet.
- Measuring ROI: Determining how much a POP display contributed to actual sales can be difficult without proper tracking.
What is POP in Retail Merchandising?
To answer the common question—what is POP in retail merchandising—it refers to the strategic placement and use of marketing materials or displays within a store to influence shopper decisions at the point of purchase. In retail merchandising, POP is both a sales tool and a branding opportunity, used to direct customer attention, promote products, and drive immediate action. It is a critical element of in-store marketing, blending creativity, psychology, and data to enhance the shopping experience.
Conclusion
Point of Purchase displays are more than just store décor—they are powerful marketing instruments that influence buying behavior and boost sales. From eye-catching end caps to interactive kiosks, POP displays allow brands to connect with shoppers at the most crucial moment: when they’re ready to make a purchase decision.
By understanding the different types of POP displays, their benefits, and how to implement them effectively, retailers and brands can better engage customers, move inventory, and build lasting brand loyalty. As the retail landscape evolves, innovative and well-executed POP strategies will continue to be a cornerstone of in-store marketing success.
