Why is Retail Merchandising Important?

What is retail merchandising?

Many people assume that retail merchandising means dressing shop windows and adding fancy details to the store. Well, visual merchandising is a significant part of retail merchandising. However, the retail merchandising process involves a combination of excellent creative and analytical skills to ensure that products are displayed and sold at the right place, right time, at the right price, and in the exact quantity. Retail merchandising means stocking up brick-and-mortar stores in a way that attracts more customers, enhances their shopping experience and persuades them to shop more. 

Stock is the retailer’s highest cost. Effective merchandising maximizes the potential of the stock. Merchandising has a massive impact on the business’ profit. A skilled retail merchandiser understands the product, market, and consumer behavior. The key is to connect the dots between these factors and comprehend how to increase sales.

Personal selling, sales promotions, creating coupons and discounts, and other marketing strategies are employed to attract more customers, build their trust, and entice them to purchase. The in-store and on-store promotional ideas are part of the retail merchandising plan. 

Here’s why retail merchandising is essential in today’s retail scenario:

Cut through the Competition:

The retail market is full of competitive players selling similar products with different strategies. Businesses must have a solid merchandising strategy in place to keep up with the competition. With the advent of e-commerce, people can easily compare products and prices among different sellers before purchasing. An experienced retail merchandising company can determine the best price, product placement, and promotional ideas that attract customers. Thus, retail merchandising gives your business an edge in the industry. 

Increase sales:

The main goal of every business is to drive maximum sales. Retail merchandising tactics help retailers attract more customers, build relationships through personal selling, and persuade them to add more to their cart. Merchandising plays a significant role in increasing the store’s conversion rate. Through effective use of technology, displays, space, cross-merchandising, retailers keep the shoppers engaged for a longer time and increase overall sales. 

Enhance customers’ shopping experience:

Merchandisers make effective use of the space in-store. A path is created for customers to move through the store. Merchandisers ensure that customers can move smoothly and comfortably within the store without being bothered. Enough space is arranged between shelves and displays. Moreover, friendly salespersons can assist customers with necessary information, suggestions, and advice. Some stores play pleasant music, spray a calming scent, and have ‘try me’ booths to enhance their shopping experience. 

Cost-effective:

Compared to other advertising and marketing techniques, merchandising is the least expensive tool. An excellent retail merchandising company helps retailers make the most of available resources. Better shelf-positioning and product-facing control are techniques that incur no additional cost. Retail merchandisers aim to persuade customers at the final buying decision stage. Using good communication skills, in-store sales representatives can entice shoppers to add extras to the cart.

Apart from attracting more customers and persuading shoppers to buy more, retail merchandising increases impulse sales, promotes seasonal products, manages inventory, understands the market demand, and caters to the audience with the right products.