Retail Merchandising
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marketinglineeRetail Merchandising
Uploaded by
marketinglineeRetail Merchandising
Chapter 9
Retail Merchandising
• Retail merchandising refers to all promotional and marketing activities that in
some way contribute to selling products to customers in a physical retail store.
• The definition here is limited to the physical, but it can be applied to a variety of
merchandising venues—from traditional brick-and-mortar malls to annual pop-up
events.
• However, with the continued rise of digital merchandising, the term retail
merchandising is increasingly being used to describe digital merchandising as
well. This trend is likely to continue, especially because research suggests that
2017 will be the first year in history that digital retail sales will surpass in-store
retail sales.
What is visual merchandising?
• Visual merchandising in the retail industry refers to all of the display techniques
used to highlight the appearance and benefits of the products and services being sold.
• Visual merchandising can include elements of spacing, lighting, and design, and is a
term that can be applied both to in-store merchandising and online merchandising.
• In regards to the in-store retail experience, visual merchandising includes aspects such
as floor plan layout, color palette selection, three-dimensional displays, and product
and banner alignment.
• In regards to the digital retail experience, visual merchandising includes aspects such
as web design, the use of GIFS and video, and any other visual design element used to
highlight the features and benefits of a product or service.
What is digital merchandising?
• Digital merchandising involves all promotional activities used to sell a
product online. Often referred to as eCommerce, also known as electronic
commerce, digital commerce, or internet commerce, refers to the buying
and selling or online merchandising, digital merchandising
• It include everything from site performance and digital product displays to
digital marketing and email marketing initiatives.
Merchandising Techniques
• Basic merchandising techniques include displaying related merchandise
together, simple and clean displays, ample aisle space, well-stocked
shelves and prominent featuring of promotional items.
• Here are four of the more popular techniques that you can use in your
store today.
1.Vertical Merchandising
• As a technique, vertical merchandising is fairly easy to explain. It’s the
grouping together of merchandise in a vertical column or display in such
a way as to get your customers to buy more products.
• Your customers tend to focus on those products that are at eye-level.
Thus, in displaying your merchandise in a vertical manner, you’re
allowing your customers to stay in one position while they use their eyes
to follow your display of items, from top to bottom.
Advantages of Vertical Merchandising
• Advantages:
1. Improves the appearance and organisation of your store.
2. Presented consistently in vertical columns, a large selection of products will appear
organised, making it easier to shop your store.
3. All brands at eye level will receive equal visibility.
Disadvantages of Vertical Merchandising
• Disadvantages:
1. It can result in over facing SKU’s that don’t require a complete vertical
allocation.
2. Your brand impact is somewhat diluted.
3. It makes it harder to display high profit lines exclusively at eye level.
Horizontal Merchandising
• horizontal merchandising - placing your products in a blocked horizontal manner -
you’re essentially ensuring that all your products are at eye level.
• The downside is that your customers will need to move from side to side to see all
your products. Since your customers prefer to stand still and scan your shelf with
their eyes, this particular technique can make it difficult to shop your store. That
doesn’t mean you shouldn’t make use of this technique.
Advantages of Horizontal Merchandising
• Advantages:
1. It makes it easier to present more profitable items at or near your customer’s eye
level.
2. If done properly, you can entice your customers to walk through your entire
display, exposing them to more products
Disadvantages of Horizontal Merchandising
• Disadvantages:
1.Your poorer performing brands may not receive enough
exposure and could perform poorly as a result.
2.You will not be able to merchandise by price point.
3.It is difficult to upsell your customers since you can’t
display bundles or add-on items.
Cross Merchandising
• Defined as the practice of displaying complementary products from different categories
together, your cross merchandising technique is great in
generating additional revenue for your store.
• For example, if you sell battery-operated toys, you should consider a display of
batteries next to them.
• If you do decide to make use of this merchandising technique, just make sure that you
always have your customer in mind.
• Any items you choose to cross merchandise need to offer a solution to your customer.
Advantages of Cross Merchandising
• Advantages:
1.Offers a solution instead of products.
2.It makes it easier for your customers to shop your store.
3.It appeals to your customer’s desire to save time.
4.Your products are organised in a way that your customers use
them.
Disadvantages of Cross Merchandising
• Disadvantages:
1.There could be possible space limitations.
2.Your customers won’t shop your entire store.
3.Your store could be seen as trying to sell off higher-
priced items
Colour Block Merchandising
• When it comes to figuring out how best to draw your customers into your shop and
keep them in store, you need to consider making use of colour block merchandising.
• At it’s core, this merchandising technique involves the use of colour to display your
products and is usually done in a vertical manner known as colour ribboning. This
can be done both in store and in your window displays.
• For example, if you’re looking to attract attention to your store, a window display
filled with bright colours is a good bet. Once in your store, you can follow that up by
including a similar display
Advantages of Colour Merchandising
• Advantages
1. Use a product's colour in a display to attract your customer’s attention.
2. It encourages multiple purchases
3. Your customers will see more of your product selection at a glance
Disadvantages of Colour Merchandising
• Disadvantages:
1.It can be difficult to create a desired effect with certain
products.
2.It can make shopping your store slower than usual
Conclusion
• When it comes to picking the right merchandising technique for your
store, it needs to be said that you don’t only have to choose one. There
are plenty of successful stores who use a combination of the above
techniques. Rather, it’s about choosing a technique that suits you store,
because without one, you can’t hope to be successful.
• Want to know where to get started with merchandising your store? First,
you need to consider your product assortment.
Homework
• Define retail Merchandising?
• Discuss techniques of Merchandising and mention its advantages and dis
advantages.
Thank you
