Creating Maximum Sales Impact Through Good Merchandising
While online shopping has made major inroads in the retail industry, brick and mortar stores can still generate impressive sales by utilizing good merchandising techniques. In fact, the impact good merchandising has on your sales cannot be overstated. Why is that the case?
How We Shop
Impulse purchasing accounts for a large percentage of consumer spending. Good merchandising prompts impulse spending in a variety of ways. Experimental psychologist Red Rui Tela confirmed through experiments that 94 percent of processed human information comes from a combination of sight and hearing, with 83 percent coming from visual cues and 11 percent coming from aural cues.
In most cases, a merchandising strategy includes elements that appeal to both of these senses, as well as possibly the sense of touch. Researcher Russell Mueller found that well-arranged displays can increase sales by a surprising 540 percent. Sales signage coupled with rolling racks can increase sales by over 134 percent. These statistics well illustrate the power of good merchandising.
How to Make an Impact
Understanding the impact that merchandising can make is key to creating the kind of sales growth you want for your business. However, an intellectual understanding will do little to help if you do not have a good plan in place. Here are some tips to get you started with a merchandising plan:
1) Analyze your space.
Remember that merchandising is about impact. Consider your retail space carefully before adding fixtures, displays, and signage. Too much clutter in too little space will negatively impact sales. On the other hand, sparse design elements will not engage potential customers. Find the balance by looking at your space as a customer would. Walk the aisles, check for bottleneck areas, and consider the logical flow of your floor plan.
2) Use displays to group similar items.
Mannequins and tabled displays help your customers imagine how items work together. Visually appealing groupings encourage impulse purchasing. Providing a personal vision for your customers will prompt more sales. Remember, the easier it is for your customer to imagine using the products, the more likely that customer is to buy right away.
3) Use racks and bins to suggest price value.
Because many stores use racks and bins to display discount items, customer perception may be that items contained in bins and on racks have reduced prices. Consider using that perception to your advantage by placing regularly priced items in these areas as well.
4) Use special spaces for special promotions.
Tables set up in central store locations are a great way to draw customers to your largest promotions. Using endcaps wisely also makes the most of small store areas for maximum impact. Pay special attention to your window display, as it works for you even before a customer enters your store. Be sure to also include small displays of hot items close to your checkout area, to encourage impulse buying for customers as they wait in line.
5) Change displays regularly.
Keeping a constantly fresh, rotating series of displays throughout your store encourages shoppers to visit often, and promotes the idea that your merchandise is always new and exciting. Never let dust settle on a display.
6) Watch your signage.
For maximum impact, ensure that your signage is informational, as well as entertaining. Catch and hold your customer's attention with consistent branding throughout the store. Include urgent wording in your signs to prompt quick purchase.
When you follow these simple guidelines, you will reap the benefits of impactful merchandising in the form of increased sales. For information about fixtures and more merchandising tips, please contact us. We look forward to working with you to make your store profitable.