TL;DR: Retail merchandising is necessary for brick and mortar retailers to be able to compete with online shopping sites. And yet, a lot of retailers would be hard-pressed to answer the question, what is retail merchandising? Retail merchandising covers everything from how you visually arrange your merchandise to the traffic patterns in your store, how you display items to promote add-on sales, to signage, and for apparel retailers - the power of the fitting room. It is all behind the scenes data collection that proves what is effective and what isn't. This post serves as a tactical primer for retailers looking for visual merchandising strategies and ideas.
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Retail merchandising, when done right, removes confusion of what to buy from shoppers, encourages a customer to shop in your store rather than in another, and most importantly, converts more shoppers into customers.
It's a coordinated effort that keeps you from carrying a ton of SKUs, slapping them on a wall or table, and expecting them to sell. Too many choices make shoppers feel overwhelmed.
Why should merchandisng matter to you? The quicker you can cut down on a shopper's choices, the quicker you can make them relax and consider purchasing your merchandise. The less time you devote to how you arrange your store and display your products, the more overwhelmed your shoppers will feel when trying to know what to look at. And an overwhelmed shopper never becomes a customer – they just leave.
You can attract as many new bodies to your shop as you want, but if they discover a hodgepodge of merchandise that takes too much to figure out, if the meet with too much frustration trying to find what they were looking for, or if they encounter only flat or uninteresting displays, your merchandise will sit. Merchandise that sits for too long is like spoiled milk; it starts to smell and loses all value until it is thrown out.
Your shoppers shouldn’t notice great merchandising, but it should focus their eyes on a display. The lighting should draw them toward a fixture; the signage should pique their curiosity, and together make them want to buy more.
In order to implement a strong retail merchandising plan, you have to have someone who understands the science of which colors are in fashion, what trends they can tie into, the cause and effect of fast-moving or dead products, as well as someone who has the creativity to create the excitement of serendipity when shopping in your brick and mortar store.
At its most basic a retail merchandising plan should include:
The time needed to merchandise a store will vary due to a variety of circumstances including the total number of SKUS, special requirements for individual displays, especially those needing security, as well as your ability to move your fixtures easily. Large stores have entire teams devoted to the four separate areas of retail merchandising while single-operator locations struggle to do something more than just get the merchandise out and priced.
The thing to remember is that there is no merchandise in your store that a customer can't purchase online.
Therefore, when they do drive to your store, they expect to get something more than they can glean off a website. That’s where the art and science of retail merchandising gives brick and mortar retailers an advantage over their online competitors.
To begin merchandising your store, always start with the front doors, for this is the first chance your shoppers have to understand the alien planet that is your store.
You’re always working on three things with your plan: the current promotion or event, the one upcoming, and a review of the one just passed. That’s why it’s always best to set up a full year calendar as part of your retail merchandising plan noting holidays, seasons, local events, and promotions.
If you’re looking to really master retail merchandising, there are several degree programs where you can go to deepen your knowledge and skills.
Visual merchandising is everything a shopper sees at your store that hopefully leads to a remarkable shopping experience. It is the unspoken language retailers use to communicate with their customers. In the advent of omnichannel retailing, it also connects to the online brand experience to provide a seamless, consistent look and feel between the web and the physical store.
It’s easy to confuse the broader retail merchandising plan with visual merchandising. But visual merchandising is only that part of the retail merchandising plan which includes rearranging merchandise, shelving, and fixtures to maximize sales as well as maintaining the cleanliness and functionality of the store fixtures, signage, and lights.
So is visual merchandising the same as displays? No, visual merchandising is more of a high-level view that includes eye-catching visual displays but continues to to lead the customer through the entire store. Specific product displays focus on just one department or brand.
One thing many retailers miss is that visual merchandising is a team effort; you must train all store associates about visual display standards and maintenance. Otherwise, they’ll simply say It’s not my job or refuse to sell a shirt off a mannequin.
A visual merchandiser is responsible for creating an environment that sells, one that allows shoppers to relax and consider all your store has to offer by crafting areas of discovery. The best visual merchandisers creatively design displays, create planograms for window displays, create both display and directional signage, buy fixtures, and generally decide what goes where, why, and for how long.
In the end, they must be both business savvy and creative in constructing an environment that stimulates a consumer’s desire to buy what they came in for as well as the add-ons they didn’t know they needed...and all at full price.
Here are 7 tips and tricks for visual merchandising your brick and mortar store:
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A great display takes the customer from either not noticing or feeling stupid about a product. It gives them the bright idea about how it would look in their homes, how they could use it in their business, how they would feel wearing it, and especially how they could smartly combine several items. Displays help build sales because they stop the customer in their tracks and persuades them to select an item they hadn’t necessarily considered. Properly built merchandising displays give them hope that what they purchase will deliver more than just a price.
Sloppy or poorly coordinated displays rob your store of its ability to make additional profit. I saw an end cap at a grocery store that had Oreos, toilet paper, and bleach. You never want a shopper to scratch their head, trying to figure out why your items are displayed the way they are.
For that reason, you want to know the different types of displays to choose from:
Five Types of Displays
Is there a difference between what should you do when setting up your display windows, display cases, shelf or table displays? Not really, the key is to create a story using different items that all work together.
Here's how to create effective and interesting retail displays:
While window displays in Manhattan, London and Chicago are legendary due to their scale and resources, anyone can do a display with very little expenditure of money as long as you follow the seven step approach outlined above.
With labor scheduling budget cuts, remember your displays are your silent salespeople. A well crafted display grabs a shopper’s interest and shows rather than tells.
You might be tempted to get your whole staff involved in visual merchandising and displays. Avoid this temptation unless you’re willing to teach them everything about your retail merchandising and display plans. Otherwise, they’ll get the idea to create a display when the store is slow, and the result won’t be as well thought-out as you’d like.
There can be exceptions of course, so if you find someone interested and creative, give them some training about how you are trying to focus the customer’s eyes, why you choose the colors you do, and the different heights you can use to achieve a longer linger time from the casual browser.
Three things you can teach your retail associates about displays:
There are three types of signage in a retail store: directional, informative, and invitational. The first is used to identify what is found in various departments. The second is just like it sounds, signs that inform like customer service, returns, BOPIS, and even layaway or custom order signs. The third is used to entice a shopper to come closer, to point out benefits over features of a display of products, and even to make a shopper laugh.
When you are thinking about how to create store directional or informative signage for your brick and mortar store, begin by thinking like a new shopper to your store.
Then write down the ten most common questions you receive in a day. I’ll bet many are either looking for directions or store information.
Next ask your staff what are the most common questions they receive every day that are not product-specific.
Now you can prioritize all those concerns and make signs that address the most important ones first.
Invitational signs are rare in many retailers’ stores because they take a bit more work than slapping a sale price on day-glo yellow posterboard, but they can deliver many more profitable sales. You find these outside on sidewalk A-frames, and in both window and product displays.
All three types of signs share the same design characteristics and here’s how to create them.
The nine best practices for creating signage:
The five best practices to avoid for your signage :
I’m sure some of you will be surprised that fitting rooms are considered part of retail merchandising, but when it comes to clothing, the sale is only made once someone tries it on. The fitting room is a huge advantage for brick and mortar retailers. An Accenture study revealed 70% of online apparel is returned due to fit issues. However, when the apparel is tried on in-store, that drops to the single digits.
The proof of your retail merchandising comes together in the fitting room which moves your shopper from browser to customer. You are taking the vision you created in your store that stimulated their buying sense and fulfilling it in your 5’x8’ fitting room.
Just like a well-designed display, the fitting room experience has to continue the engagement from the salesfloor, so here are three tips to make that happen:
And always remember…
You’ll have to work with your Director of Operations and store managers to make sure all associates are properly trained to monitor and service the fitting room visitors to increase conversion rates.
Retail Merchandising refers to all the activities both seen and unseen which contribute to the sale of products in your store. It includes the visual merchandising which creates the environment to sell, the displays which stops shoppers in their tracks, the signage that directs, informs, or inspires them, and the fitting rooms where the final decisions are often made.
Use these tips and tricks as well as best practices to merchandise your store like a pro. And if you’d like me to come speak to your group about how to make displays that convert along with signage that entices, visit my speaking page.
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