Cost Effectiveness

Merchandising is one of the most inexpensive promotional mix tools, especially if a company is
experienced and skilled in its use. It may be valuable to companies with limited promotional funds
since techniques such as product facing control, and better shelf-positioning may incur little to no
additional expenditure. Also, sales representatives whose salaries are already being paid can
perform these tasks.

Increased Sales

If merchandising is used properly, then it can make a positive effect on retail sales and the revenue
generation, which is the sole goal of every business.
All techniques such as place, pricing, product packaging, display, sales sign, arrangement, and
promotional marketing not only improve customers shopping experience but also increase sales.

Effective merchandising, whether at the front of your store, in point-of-purchase displays near the
cash register or on shelves or at displays scattered throughout the store, helps shoppers notice
products they may not have noticed otherwise. Plus, strong merchandising helps move more of your
best-selling products and proven winners, giving you a way to make even more money as the goods
fly off the shelves.

It also helps you make more profit from the store without expanding your business or renovating
your store. People like to shop in a place where they feel good. Good merchandising will make your
customers come back to your store again and again for shopping.

Attracts Customers

Merchandising is an effective technique to bring customers in the store who don’t come in the
market for shopping purpose. Increased traffic increases the chances of more sales.

Therefore, your merchandising begins at the entry gate of your store. People get attracted by the
display they see outside and enter the store to look further.

Everything such as manicured grounds, bright signage, a well-kept retail structure, and a clean
parking lot are all factors that helps a shopper to make the decision to shop in your store or not.
Whether they will buy something in your store or not will depend on the pricing, packaging, and
product line in your store.

Retail Merchandising

Before understanding about retail merchandising, let us know what the term retail means. “Retail is
the selling of products or services in small portions to consumers whose main aim is to use them but
not to sell them again.” For products to reach a consumer-like form you must go through a process.
They move from a manufacturer to a wholesaler. Then to a retailer who repackages the product to
sell to the end-user.
“Retail merchandising a process that helps retailers trade their products and services. Successful
retail merchandising associate selecting products that will attract customers while pricing and
promoting them in ways that will boost sales”.

Retail merchandising attracts customers to particular goods and services in various ways. Retail
merchandising includes activities and strategies such as in-store design, the selection of specific
merchandise to match a target market, and the physical and digital marketing of merchandise to
customers.

The goal of retail merchandising activity is to support a retail strategy that generates revenue for the
retailer and value for the customer. The selection of retail merchandise and the type of goods and
services a retailer decides to stock are key retail strategies.

It also includes various activities which contribute to the sale of products to the consumers for their
end use. Every retail store has its own line of merchandise to offer to the customers. The display of
the merchandise plays an important role in attracting the customers into the store and prompting
them to purchase as well.

Some factors that facilitate retail merchandising are -

Packaging

Discount or Pricing

Promotions

Target Consumer