Merchandising, where the true money from the movie is made. Spaceballs the T-shirt. Spaceballs the lunchbox. Spaceballs the coloring book. Spaceballs… the flamethrower! Kids love it. And my favorite, Spaceballs the Doll – me!” – Yogurt from the movie Spaceballs
Merchandising is a critical aspect of how “shoppable” a shop will be. Conceal or confuse the consumer with your merchandising and it won’t matter if you carry the utmost effective brands, the consumer will become frustrated and leave the store. Many retailers simply “stack it high and allow it fly” without thinking about the nuances of proper merchandising.
By guiding the consumer throughout your store using their favorite products which are readily available, the retailer has an excellent opportunity to show merchandise inventory more quickly and thus increase profits. Failing to provide the utmost effective products due to out-of-stocks or through cluttered merchandising – alongside their corresponding complementary products – will frustrate potential customers.
The target with an overall merchandising strategy is to help make the shopping experience quick, efficient and easy for the customer Klever Influencers. While some customers might wish to “shop” the store and take more time, let that be their choice, not forced into that mode by poor merchandising. Let’s take a peek at some specifics:
Display Area: A clearly delineated display area helps guide customers to distinguishable merchandising sets that allow easy shopping and ultimately, purchasing. Merchandising may be highlighted with specific store designs and gondolas. Frequently, retailers cram products onto shelves without rhyme or reason and expect the consumer to navigate through their purchasing. Make the set and display easy for the consumer to state “yes “.
Fixtures: Fixtures should be properly used to accentuate the merchandise, not conceal it. Select fixtures that allow for the product to be showcased and easily stocked. Fixtures which are excessive prevent inviting site lines in addition to create a protection risk. Dark, dingy and filthy fixtures detract from the products.
Merchandise: Needless to say, selecting the most consumer-preferred merchandise is important to the overall success of your store. Category management strategies necessitate the appropriate number of SKU’s for the highest moving items and the premium position on the fixtures. Out-of-stocks not only can hurt the immediate sale, but will cast doubt in the minds of the consumer on whether the store may be trusted to possess their favorite brands on their next visit. Sometimes, one out-of-stock experience for the consumer can lead to the consumer never returning.
Plan-O-Grams: Every product should have a preordained placement on the merchandising fixture. A plan-o-gram is a tool that visually communicates the placement and the pricing related to those products within the category and/or fixture. Haphazardly placing products leaves profits on the shelves as opposed to in the store register.
Pricing: Pricing should be considered inside a holistic, store strategy. Specifically, if multiple people are making pricing decisions for products throughout the store, be careful to ensure “not everything in the store is on sale “.A collective pricing strategy enables a retailer to drive volume with certain products while protecting margin with others. The success is based on the mixture of these two approaches so the store optimizes overall revenue and profits.
Signage: Signage is a crucial element providing both directional messaging and price points. It is important that signage not be overwhelmingly busy or too plentiful that the store becomes a cacophony of messaging. Customers must be informed throughout the store as opposed to inundated with overcommunication.
Product Adjacencies: Placing products which are complementary next to one another enables the typical ticket sale of the store increase. If you should be selling shirts, having ties merchandised next to them is an excellent exemplory instance of a merchandising product adjacency strategy. Much like plan-o-grams and positioning the utmost effective selling items in the most effective places, many stores that don’t link products with adjacency placement, miss out on sales and profit dollars.