Merchandising principles you need to know

Customers will come back again and again and spend more time in a store that is enjoyable to shop at.

One way to achieve this is by using merchandising principles.

Merchandising is a complex work of product placement and facilitation of choice for the buyer.  This is a method of preparing for the sale of products in a store or a set of measures for product promotion.

Merchandising includes:

- сonvenient layout of goods, which groups the entire assortment by categories, brands, and characteristics;

- store floor design;

- promotions and discounts to increase customer loyalty.

According to the ServiceChannel retail report, 64% of shoppers leave a store due to an unpleasant appearance or disorganized display. Neat shelves filled with goods seem like a trifle, but they affect the overall shopping experience.

Several principles of merchandising will help make a store more attractive to customers and increase sales.

Place new items at eye level

Product placement plays a critical role in getting customers to buy. Research has shown that products placed at eye level are more likely to be seen and bought. It is vital to create hype around a new product.

Therefore, by using the shelf space at eye level, you can immediately improve the visibility of this product.

However, you must consider the terms or how long a new product should remain on sale in that position.

Most often, the recommended duration is about three to six months. After that, you should analyze the sales of the product to determine its success.

In addition, by placing a new product at eye level next to another high-demand product, you can entice a shopper to compare the new product with a popular one and help promote sales.

Remember your own brands

Place your own brand products between the more expensive and popular brands, but before the cheaper ones.

Another way is to sell products by brand (vertically), but group similar products horizontally. This makes it easy to compare products/prices. Cost and placement play an important role in the sale of a product.

Always consider the type of product you are selling. This affects its placement. For example, sell heavier items on the bottom shelf. Items on the top shelves should be lightweight so shoppers can effortlessly take them off the shelf.

Allocate a place on the trading floor for a promotional product with possible signs - “last product”, “product is running out”.  Here you can place items that could not be sold. While waiting for the next batch of goods, the previous one should be sold out as soon as possible.

This method helps to get rid of seasonal stocks before the new season products become available.

The principle of the golden triangle

The storeroom has several key points that form a triangle. These points (the vertices of the triangle) are the entrance to the store, the main showcase (for example, the bakery department), and the place where the counters are located.

Thus, the bakery is placed in the farthest corner of the trading floor. The goal of the golden triangle is to guide the customer throughout the entire sales area.

In order to buy bread, the buyer will have to go around the entire store and, most likely, he will make accompanying purchases along the way.

Following the rule of the golden triangle allows you not only to increase sales in general but also to manage sales of individual products.

Types of merchandising

There are three main types of merchandising that drive sales.

Cross-merchandising

This is when, next to some goods, we sell others, related ones. For example, you buy a steak and you see the sauce next to it.

The so-called cross-merchandising stimulates the acquisition of goods through the correct placement of additional products next to the main one.

Visual merchandising

It is an attractive display, lighting, smell, sound, and music to create a special atmosphere in the store.

Think of supermarkets during the Christmas season - this special atmosphere, like in the movies, where lights twinkle and Jingle bells play.

With effective visual merchandising, it is difficult for buyers to resist buying something that they did not plan in advance.

Communicative merchandising

This is the ability to establish interaction with customers, as well as with store employees.

Prompt the buyer where the desired product is located, give advice, and help with the choice.

Being able to help and guide is also part of merchandising.