Since the time of early general stores, merchandising has been essential in retail.

And with the

rise of eCommerce, business owners must consider merchandising from multiple angles. But this
doesn’t mean that traditional in-store merchandising for business is dead. As the pandemic eases,
you’ll likely see customers returning to brick-and-mortar stores. This means it’s vital to refresh
your merchandising strategy.

What is merchandising? For retail businesses, it’s the way products are displayed and
portrayed in the store. For instance, beauty products are shown next to beautiful photos. They
may also be stocked next to a mirror with hygienic samples so customers can try them.

The goal of merchandising is twofold: psychological and financial. You want to create a positive
emotional response and boost sales. So, merchandising should play a key part in retail marketing
objectives.

What are the Benefits of Merchandising in Marketing?

Merchandising in marketing is an affordable way to sell more product. Unlike paid tactics like
traditional and digital marketing, direct mail, and other active marketing efforts, retail
merchandising is a low- or even no-cost tool. You simply set up inventory in thoughtful and
appropriate ways. Then, your merchandising can influence the customer experience and inspire
them to buy.

Old-school retailers pioneered effective merchandising. In fact, some of their tactics are still used
today. Just check department story display windows. You’ll see strong examples of exceptional
merchandising in action. Sporting goods retailers provide good ideas too. Think of displays that
artfully bring the outdoors in, helping customers imagine where and how they can use their
purchases. But you don’t have to be a brick-and-mortar behemoth to benefit from product
merchandising tricks. The first requirement for any good merchandiser is to think visually.

The Key Elements of Visual Merchandising

In-store merchandising is a visual tool. So if you want to set up an effective retail store display,
there are several visual elements to consider. Think of yourself as an artist creating a still life.
Tell a story that affects your audience emotionally and will boost retail sales. Here’s a checklist
to follow as you begin the process of visual merchandising:
 Lighting — Use lighting to draw attention to products. Give special emphasis to high-
margin items. Spotlights, mood lighting, floor lamps, strings of holiday lights, all
combine to evoke emotional customer responses.
Signage — Signs are an essential element of your merchandising display. They grab
customers’ attention and give them important information. Emphasize key benefits and
pricing, especially if there’s a sale.
Decoration and décor — Think “eye candy” when you’re choosing décor. Consider how
to help customers envision a product’s use and environment. Then pay attention to
details. Visual displays at Christmastime can be enhanced with wreaths, holly, artificial
snow, and other seasonal decor. Or, for a summer-themed product display of
swimwear, add beach umbrellas, loungers and a cooler. Remember not to overwhelm
the products you’re selling. Just make them shine.

Keep in mind that your store merchandising needs to be strategic. The end goal is to boost retail
sales by creating eye-catching and engaging product displays.

Merchandising Strategies

Beyond helping to sell products, your retail merchandising strategy should make the shopping
experience memorable and enjoyable. When you create a positive shopping experience you
enhance customer loyalty. You also give customers a reason to return to your store and to tell
their friends about it. Consider some of the following ways you can use merchandising to turn
your customers into advocates.

Think About the Customer Journey

It’s important to ask yourself why people come to your store in the first place. Shopping online is
often more convenient. It can be less expensive too. So, why do people shop in-store? Maybe
they need something quick and can’t wait for shipping time. Or perhaps they want to browse for
ideas. Likely, your in-person customers simply enjoy the in-person shopping experience. Keep
these reasons in mind while merchandising. Keep a variety of merchandise stocked and try to
give customers an experience they simply can’t get while sitting in front of a computer screen.
Keep in mind that first-hand sensory experiences are not available to online shoppers. Consider
playing in-store music, using pleasing scents and offering product samples.