“MERCHANDISING” – The Essence Of Retail

“MERCHANDISING” – The Essence Of Retail

Merchandising  Retail Hypermarket-Supermarket & Retail Stores


“In retail stores, retailers put the maximum efforts to an activity called merchandising.’’

So what is Merchandising?

“All practices and activities contributing to the sale of products to a retail consumer is called merchandising.’’ 

It may involve several elements such as :

  •  Colors used in the internal store decoration.
  • Marketing techniques and strategies
  • Display of promotional gondolas and their location in the store
  • The lighting used in the store
  •  The aisles layout
  • Shelves height and coloring
  • Choice of the assortment and its display metrics.
Retailers run promotional activities, make attractive product displays and set logical planograms and many more activities which helps in sales and attracting more customer traffic to the store. When a customer walks into the store, to him the displays, aisles, signages may seem like an ordinary store set up. However, this is how retailers have consciously planned customers visit from the very first step into the entrance to the checkout counters. A well-merchandised store entices customers to make more and more planned and unplanned purchases. The layout is designed to encourage, attract and inspire the customers to walk through every aisle of the store.
The sole purpose of the merchandising is to present the store displays to the customers in such a way that it not only assists them to do hassle free shopping but also to make impulsive purchases. The consumer may visit the store to buy milk but ends up buying bread, butter, and cheese too. Retailers have started focusing on cross-merchandising techniques which in turn eases the shopping for customers leading to an increase in the sale. This is the result of effective merchandising.



In other words, Merchandising refers to a range of product assortment available for sale and display of the products is showcased in such a way that it stimulates customers to make a purchase. On the other hand, it creates a logical set up of the merchandise for the internal store team. Thus helping merchandisers to better understand products and customer behavior. Big brands do more research activities to better understand customer buying behavior and accordingly merchandise the store.


The big retail brands operating chain of retail stores have a dedicated team known as a central merchandising team. This central merchandising team plans and implements every aspect of merchandising activity.


 Why Effective Merchandising?


Effective merchandising is the key to every successful retailer.  Merchandising is the central pillar of any retail outlet that holds and promotes your retail business.


 It enhances the customer shopping experience

The well-merchandised store is more presentable and organized. The shelves should neither be overstocked or understocked, in fact, should be stocked to an optimum requirement. The shelf labels and facing of the products should be intact and well maintained. The neat and tidy shelves give an impression of good hygiene.


 Merchandising makes shopping easy and appealing to customers

One of the motives of merchandising is to keep product displays accessible and hassle-free. The planograms should be so designed that it provides various options to choose from the product displays i.e having required brands and sizes available. Displaying heavy and bulky products on the bottom shelves making easy for customers to grab the products.


 Effective Merchandising Improves overall sales and profitability

The effective merchandising attracts and entices customers to make a purchase. Impulse displays and cross merchandising are a way to get add on sales

  • Merchandising gives a way to strategic pricing decisions. The promotional merchandising techniques such as pallet displays, end cap displays increase product sales.
  • Merchandising enables self-service shopping. Properly maintained planograms and displays help customers to find their merchandise easily.


 Merchandising enables proper and effective use of space

Supermarkets and other retail stores carry tens of thousands of product on displays with limited space. Thus, space allocation becomes a hectic task, proper merchandising uses every inch of space effectively.


Merchandising makes several vital contributions to your store. Effective merchandising increases sales by making a store appealing to your customers. It improves profitability by generating more margin. Also, it controls costs by improving the productivity of the sales floor as well as each employee.


7 thoughts on ““MERCHANDISING” – The Essence Of Retail

  1. blog

    great post, very informative. I ponder why the opposite specialists of this sector don’t realize this.
    You must proceed your writing. I’m confident, you have a great readers’ base already!

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