How supermarkets use psychology to make you spend more

Have you ever walked into a supermarket planning to buy just a few items, only to leave with a much bigger receipt than expected? This is not poor self-control. It is the result of carefully designed psychological visual merchandising techniques used by supermarkets to influence your behaviour.

Retailers such as Tesco use psychology to shape what you notice, how you feel, and the decisions you make while shopping. Once you understand these techniques, you will start to see them everywhere.

Product placement: eye level is buy level

One of the most effective techniques used by supermarkets is product placement. This involves positioning products in specific locations to increase the likelihood they will be bought. Research shows customers are far more likely to purchase items that are easy to see and easy to reach.

Supermarkets know that eye-level shelves are the most valuable space in the store. Products placed here receive the most attention and are more likely to be chosen.

Tesco uses this strategy in several ways:

• Own-brand products are often placed at eye level in key aisles such as snacks, cleaning products, and household essentials.

  
  

• More expensive or higher-margin items are positioned where shoppers naturally look first.

  
  

• Children’s products, particularly cereals and snacks, are placed at a child’s eye level.

  
  

This encourages children to spot the product and ask their parents for it while parents are distracted by their shopping. In many cases, the request leads to an unplanned purchase, increasing sales without shoppers realising they have been influenced.

Colour psychology: using emotions to influence choice

Another powerful technique is colour psychology, where businesses use colour to trigger emotional responses and influence customer decisions.

Tesco carefully uses colour throughout its stores:

• Red is commonly used on sale signs and “Special Offer” labels. Red creates urgency and excitement, pushing customers to act quickly before they feel they might miss out.

  
  

• Green is often used in the fresh fruit and vegetable section. This colour is linked to health, freshness, and natural quality, making produce seem more appealing.

  
  

• Blue, used in Tesco’s branding and Clubcard signage, is associated with trust, reliability, and security.

  
  

These colours work together to guide customers through the store, influence how products are perceived, and increase the likelihood of purchase.

Impulse buying: designed at the checkout

Impulse buying plays a huge role in supermarket profits. Even disciplined shoppers are vulnerable to last-minute purchases, especially when waiting at the checkout.

Tesco encourages impulse buying by placing:

• Chewing gum

  
  

• Crisps and snacks

  
  

• Bottled drinks

  
  

• Magazines and seasonal items

  
  

These products are positioned close to the tills, within arm’s reach, and are usually low-priced. Because customers are already committed to spending money, adding one extra item feels easy and low risk. Individually these purchases are small, but across thousands of customers they generate significant additional revenue.

Loss aversion and Clubcard pricing

Tesco also uses loss aversion, a psychological principle that suggests people prefer avoiding losses rather than making gains.

This is especially clear with Clubcard pricing. For example, a product may be priced at £6.99, but reduced to £4.49 for Clubcard holders. By clearly displaying the higher original price, Tesco uses price anchoring to make the discounted price appear like a big saving.

Customers may feel they are losing out if they do not use their Clubcard, even if the product could be cheaper elsewhere. This encourages:

• Immediate purchases

  
  

• Increased spending

  
  

• Stronger customer loyalty

  
  

Why this matters

These techniques highlight that successful retailing is not just about selling products. It is about understanding consumer behaviour and using psychology to influence decisions.

For business students, Tesco provides a clear real-world example of how:

• Visual merchandising can increase sales

  
  

• Customer psychology influences buying behaviour

  
  

• Businesses design stores to maximise revenue

  
  

The next time you spend more than planned, it is worth asking yourself whether it was really your choice, or the result of clever visual merchandising.

Questions for business students to consider:

1. Explain how product placement and colour psychology are used by supermarkets like Tesco to influence customer buying behaviour.

   
   

2. To what extent do you think psychological visual merchandising techniques, such as loss aversion and Clubcard pricing, are fair to customers?

Extension question: McDonald’s uses loss aversion on its self service kiosks by highlighting meal upgrades, add-ons, and limited-time offers.

Suggest whether think this is a fair way for McDonald’s to encourage customers to spend more?