Although many purchases are made for rational reasons, impulse buying is still prevalent among consumers. Supermarkets, convenience stores, and fuel outlets have successfully capitalised on people’s impulsive natures. Supermarkets are particularly skilled at this, as evidenced by the items strategically placed near the checkout counter. It is rare for someone to leave without being tempted to pick up something extra on the way out.
Merchandising is the process of arranging your store or sales environment, with the goal of enticing customers to make purchases. Here are some recommendations for how to increase sales through merchandising and optimally layout your store or sales environment.
Position, position, position
You can adopt the supermarket's approach by displaying small items, trial packs, or unique "specials" (preferably small-dollar items) near your cash register or where customers typically wait or queue.
Put complementary products together
Arrange complementary products together in displays to encourage add-on sales. For instance, pairing books with bookmarks, pasta with sauces, clothing with accessories, shoes with socks, or shirts with ties.
Use signs
Utilise signs to draw customers' attention to specials that they may not have otherwise considered purchasing.
Signs should be eye-catching and visually appealing. They should utilise dynamic words such as "sale", "free", and "clearance". However, it is important not to overdo it with the number of signs displayed. Excessive signage can appear confusing and may not effectively influence customers' purchasing decisions.
Use promotional literature and materials
You may discover that many of your suppliers offer merchandising materials such as product information sheets, handy hints leaflets, displays, and signs. These resources can be utilised to highlight specific products from time to time, but it is important not to overuse them. To capture customers' attention, create impressive displays of these products, but remember that placement is critical. Place these special promotions in areas where customers are likely to notice them on impulse or when they have time to examine the information.
Store layout
Ensure that your store is easy to navigate by arranging displays, shelves, counters, and other store fixtures in a way that allows customers to move freely around the store to browse.
Adopting a free-flow floor plan, similar to that of a supermarket, encourages customers to move around and explore the store. While it may be tempting to place large displays near the store entrance to capture attention, doing so may create a barrier for customers who wish to enter the store further. This is especially true if your cash register or service counter is also located near the entrance. Customers may be less likely to venture deeper into the store unless it is easy for them to do so, or if you have other eye-catching displays to entice them.
Similarly, avoid placing large displays in the middle of aisles or in areas that are likely to obstruct traffic flow. Instead, aim to maintain a steady flow of customers throughout the store by keeping traffic moving in and around the store at all times.
Cleanliness
Ensure that your store is clean and well-organised, as customers are unlikely to want to shop in a store that appears messy or dirty. Likewise, customers are unlikely to purchase dusty or damaged stock (unless it is heavily discounted).
It is advisable to conduct a weekly inspection of your store, running your fingers over shelves and stock to check for any accumulated dust or grime. If any such dirt is found, it should be immediately removed to maintain a clean and hygienic shopping environment for customers.
Light
Ensure that your store is adequately lit, even in areas that may not receive sufficient natural light. If necessary, install additional lighting fixtures to achieve this. Adequate lighting not only enhances the store's security but also enables customers to easily view all products, including those located on low or corner shelves, which are traditionally considered slow-moving areas in stores.
Change your displays regularly
Frequently rearrange your store to keep it fresh and interesting. Experiment with moving stock items to different areas of the store to determine which areas generate the most sales.
Promote slow-moving items by positioning them in more visible areas, but avoid doing so at the expense of top-selling products that attract customers to your store.
Vary your displays regularly, experimenting with different colours, heights, sizes, and signage to determine what attracts the most attention. Although it is important to identify the most effective displays, it is advisable not to limit yourself to using only these or repeatedly use them for different products.
Regularly change the appearance of your store to ensure that returning customers are intrigued by the new layout and motivated to explore what's new. Customers may not notice the introduction of new products at a glance, so it is vital to create a noticeable change to attract attention.
Good window displays
An attractive window display is essential in attracting customers. It is important to create a display that is colourful, visually appealing, clean, and well-lit. To maintain customer interest, the display should be frequently updated and refreshed with new products and designs.
Demonstrations
Hosting events is an excellent method for attracting customers to your business. In addition to showcasing your products, you can also feature complementary items related to your business. For instance, during the Christmas season, you could host demonstrations on gift-wrapping, cooking, makeup application, and colour-matching. Additionally, you could invite performers such as magicians, tarot card readers, clowns, and costumed characters like Santa Claus or the Easter Bunny to entertain your customers during specific periods.
Excite the senses
It is important to remember that humans have five senses: touch, taste, smell, sight, and hearing. Therefore, it is advisable to consider appealing to all of these senses to enhance the customer experience. However, it is important to avoid overwhelming any one sense in particular. For example, while loud music is suitable for a record store, it may discourage customers from visiting a chemist.
If your business is related to food, it is recommended to target the sense of smell with the aroma of delectable cuisine. Even if it does not contribute directly to sales, a sausage sizzle is a tried-and-true drawcard.
Test and measure everything
It is crucial to test all merchandising strategies to determine which ideas are most effective. Once you have identified the most successful approaches, it is advisable to use them consistently. However, it is important to note that changing things around regularly can help maintain customer interest.
If your customers visit your store on a weekly basis, promotions will quickly lose their impact after one or two weeks. Therefore, it is recommended to replace them with new promotions to maintain momentum and prevent customers from becoming disinterested.
Merchandise your materials
It is important to note that promotional, sales, and presentation materials can be used to sell products or services, even if you do not have a retail store. These materials can be placed in your foyer, reception area, or any other location where customers may be present. In addition to this, signs can be used to inform customers about new products or special promotions.
'Merchandise' refers to sales materials, and it is advisable to include companion products in your literature to sell the benefits they provide to the major products. It is also recommended to sell special or discounted items last to encourage add-on sales rather than replacement sales, and to promote trial products after the major sale.
All materials should be in good condition, clean, tidy, professional, and accurate. If they appear outdated or scruffy, consider having them re-done by a professional printer or graphic artist.
Newsletters can also be used for merchandising. You can use newsletters to display new products or services, highlight their uses, and discuss complementary products. Additionally, you can advertise products in your store through your newsletter to entice customers and prospective customers to visit.
Trade shows
When participating in trade shows, it is crucial not to neglect your merchandising skills. Make the most of your stand to increase both during and after-show sales. Display your products being used and showcase companion products together. Additionally, be sure to offer some giveaways or handouts to attract potential customers.
Summary
The following is a checklist that should be taken into consideration when merchandising your store. Evaluate how well you measure up against each item and address any deficiencies immediately.
Make a list of the merchandising strategies you can use to increase or prompt further sales. Work out how you will measure the results. Set a timetable for changing around the look of your store – for example, every fortnight, month, or whatever period is most applicable to your business.
- Position items for impulse buys.
- Group complementary products together.
- Use signs to attract attention.
- Use promotional literature and materials.
- Maximize the flow of customers around your store.
- Keep your store clean and tidy.
- Ensure that your store is well lit.
- Change your displays regularly.
- Create great window displays.
- Use demonstrations.
- Excite the senses.
- Test and measure everything. Merchandise your materials too!

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Information contained in this document constitutes general comments only for the purposes of education, and is not intended to constitute or convey specific advice. Clients should not act solely on the basis of the material contained in this document. Also, be aware that changes in relevant legislation may occur following publication of this document. Therefore, we recommend that formal advice be obtained before taking any action on matters covered by this document. This document is issued as a guide for clients only, and for their private information. Therefore, it should be regarded as confidential, and should not be made available to any other person without our prior written approval.