Understanding the Effectiveness of Proper Retail Merchandising

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As a retail store owner, defining and optimizing your retail space is a critical part of merchandising. When you think about the amount of space you have, keep in mind that walls also cover part of your retail space and it’s important to capitalize on them. Walls are perhaps the most underused space by retailers. You may have 600 square feet of floor space, but when you consider the walls, you have an extra 200 square feet when you incorporate shelving and wall mounted display racks and stands to the walls.

Retail space is like a silent sales agent that has to be coupled with effective visual merchandise techniques to promote and lure customers into purchasing. Here are great tips and product display ideas that can improve your sales significantly.

Tricks of the trade
The first thing you should know as a product merchandiser is that consumers shop with a pattern. Psychology, there is a natural inclination as to how they choose actually to shop at a store. Studies have found out that consumers tend to move counterclockwise through the retail space, meaning that display sections to the right of the door have a higher chance of attracting customer to make a purchase. Shopper will focus more on this side of the store, hence the need to stock it with high-profit merchandise.

Depending on what you specialize on as a retail store, you need to consider your staple products. These are the fast-moving commodities in your store and therefore should be strategically placed. If your major is groceries, then your staples are fresh produce, baked goods, meat, and dairy products. For stationery stores, ink cartridges and printer papers. Because the idea is to maximize the visibility of other products and increase the time spent in your store, these essentials should be displayed at the very back end. Shoppers will spend a lot of time looking for these products, which means they end up spending more on other products too.

Consumer psychology can help a retailer develop more creative product display ideas. And one of the most successful retailing tactics is to focus on the influencer, and not just the purchaser. In most cases, children work as influencers, and so you should ensure that high-profit products that can appeal to kids are displayed at their eye level. There excellent retail display stands, rotating buckets and display racks you can use to achieve this tactic.

Retail Displays Design
The layout of your store will determine the product display ideas to use. According to a 2011 consumer report, 86% of shopper will pay more for a better experience. With that in mind, it’s important to invest in the right retail display fixtures that allow customers to shop with ease. Don’t ignore the power of eye-level shelving because that’s where fast moving and high-profit products are displayed.

Another way to improve shoppers buying experience and boost your profitability in return is by creating a conducive and welcoming retail environment. This means that your lighting has to be good, the store has to be clean and the common store aesthetics have to be top notch. Creating an atmosphere that reflects the true core values of your business.

To boost the atmosphere in your store, you can use scent generator which creates an exciting shopping experience. Music is also another component of a good atmosphere you can use to affect customer buying behavior. It’s estimated that customers make 82% of their buying decision in the store. By introducing free samples and giving shoppers an opportunity to sample your products, you can influence their decision to some extent.

Lastly, you need to consider the cost versus benefit factor when looking for product display ideas. Consider product display ideas that match your physical space. There is no rule of thumb in doing that and so you need to get creative.

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Sarah Todd

Sarah Todd

Sarah Todd, an investment banker, is a reporter and researcher for one of London’s leading media outlets. Formerly a trader and market maker at FTSE, she turned to media during the global recession. This website features some of her best and favourite articles, from all parts of the business world. Please let her guide you and your enterprise along the path to prosperity.