Markiserv in the News: Consumer Packaged Good and Reader's Digest

Have you ever wondered why the two items you almost always need — milk and eggs — are placed in the farthest corner of the grocery store? It’s not a coincidence. Grocery store layouts are carefully designed to influence customer behavior, boost sales, and manage store operations efficiently.

In this post, we’ll break down the reasons behind this common layout strategy and what it means for your next shopping trip. This article in Reader's Digest takes on that very topic. With a feature from our president, Ryan Anderson, discussing why cooler items are left in the back of the store, which we have left below:

"It’s all about maintaining a healthy bottom line and keeping electricity costs and overhead down, adds retail expert Ryan Anderson, the president of Markiserv and a veteran of the consumer retail and government commissary industries. This positioning also helps the store retain cold air by the fresh stuff, so it doesn’t leak out as people go in and out of the store."

It’s All About Walking Through More Aisles

The primary reason milk, eggs, and other essentials are tucked away at the back is to encourage more shopping. By making you walk through multiple aisles to get to what you really need, stores increase the likelihood that you’ll make additional, unplanned purchases along the way.

Think about it: as you stroll toward the dairy section, you pass by tempting displays — fresh baked goods, chips, drinks, seasonal promotions, beauty products. Even if you came in just for milk, you might leave with a cart full of extras you didn’t intend to buy.

This strategy taps into a phenomenon called impulse buying — a powerful driver of grocery sales.

Managing Perishable Items

Another important factor is logistics. Milk and eggs are perishable and require constant refrigeration. In most stores, refrigeration systems line the walls — especially the back walls — where it’s easier and more cost-effective to run large cooling units.

Having all the refrigerated and frozen products along the perimeter not only saves energy but also keeps perishable inventory organized and easier to manage. You’ll usually find milk, eggs, yogurt, cheese, butter, and meats all along the edges of the store, for exactly this reason.

This layout isn’t just about sales — it’s also about keeping food fresh and safe for customers.

Creating a Traffic Flow

Grocery stores are designed with flow in mind. Retail experts know that a logical and natural path through the store helps customers feel more comfortable while increasing their exposure to more products.

By putting must-have items at the back, stores ensure that shoppers make their way deep into the space rather than just grabbing a few things near the entrance and leaving quickly. The further customers travel into the store, the more opportunities there are for spontaneous shopping decisions.

This flow also makes it easier for stores to organize departments logically — produce at the entrance for a fresh, colorful first impression; bakery nearby to give off delicious smells; dairy and frozen foods at the back to be picked up last and stay cold.

Psychological Tricks at Play

Retail psychology plays a big role in grocery store design. Everything from aisle width to product placement is planned with shopper behavior in mind.

Having milk and eggs in the back takes advantage of something called the "inertia effect." Once a shopper is already deep in the store, they're less likely to rush out quickly — and more likely to keep browsing.

Additionally, stores often place high-margin or promotional items at eye level and along major pathways leading to the essentials. These products aren’t randomly chosen — they’re items the store hopes you’ll grab without too much thought.

In essence, grocery stores subtly turn a quick "milk run" into a full shopping trip — and often, a larger receipt.

Maximizing Profits in a Low-Margin Business

The grocery business operates on very thin profit margins — often just 1% to 3%. Essentials like milk and eggs are staples, but they aren’t highly profitable items. In fact, some stores even sell milk at very low prices (or break-even pricing) just to lure customers into the store — a tactic called a loss leader.

Once you’re inside, the goal is to get you to pick up additional, higher-margin products — like prepared foods, snacks, beverages, and household goods. By forcing you to travel through aisles filled with these profitable items, stores maximize their chances of boosting overall sales.

So while the milk itself isn’t making much money for the store, the bag of chips and bottle of soda you grab along the way are helping their bottom line.

The Role of Store Loyalty and Customer Experience

Modern grocery chains are also very aware of customer loyalty. They design their layouts carefully to balance sales strategies with customer experience.

While it might seem inconvenient to walk all the way to the back for milk, most customers are used to the layout and even expect it. Stores often keep their layouts relatively consistent over time to create a feeling of familiarity and comfort — key elements in customer retention.

If a store made it too difficult to find everyday staples, shoppers might become frustrated. But by balancing the inconvenience with a logical, easy-to-navigate path and lots of attractive product displays, stores keep the shopping experience both familiar and subtly persuasive.

Final Thoughts: Next Time You Grab Milk, Know What’s Happening

Next time you're navigating the grocery store, take a moment to notice how the layout affects your shopping behavior. Are you picking up more items than you planned? Are certain displays catching your eye? It’s no accident.

By placing milk, eggs, and other essentials at the back of the store, grocery chains are using a well-honed blend of logistics, psychology, and business strategy to guide your shopping journey — and boost their profits along the way.

Understanding these tactics can help you shop more intentionally — and maybe even stick closer to your list!