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What Is Merchandising? How It Can Help Your Bottom Line

As a business owner, you know that the bottom line is key. But what is merchandising? And how can it help your business? This article will explore merchandising in business and how it can help your bottom line.

What is Merchandising?

What is merchandising? Merchandising is the process of promoting and selling products, typically in a retail setting. This can be done through a variety of means, such as product placement, pricing strategies, and marketing campaigns.

By effectively merchandising your products, you can increase sales and encourage customers to return to your store in the future.

Merchandising typically involves displaying products in an attractive way in order to encourage people to buy them.

How Merchandising Can Help Your Bottom Line

Having your store shelves well-stocked, with clear pricing and smart merchandising strategies, can help increase customer interest and engagement, which can lead to more sales and better customer experiences.

Improved Customer Engagement Merchandising is important to retail businesses because it can help increase foot traffic, turnover inventory faster, better use floor space, improve customer engagement, and higher customer return rates.

The National Retail Federation’s (NRF) 2021 report found 53% increase in retail traffic between January and August of 2021.

If you want to take advantage of the potential for increased foot traffic, one of the best things you can do is to merchandise your products smartly.

Try using eye-catching signage outside of your store or in your display windows to draw in customers.

Merchandising outside of our physical store improved our in-store traffic.

Product Promotions and sales are another great way to draw customers in. They entice them with the possibility of deals and discounts.

By hosting promotional events like flash sales, you can create urgency and spur your customers into making quick buying decisions.

A sandwich shop owner displays a brightly colored, foldable sign that advertises the daily specials. (Source: YescomUSA)

When items are easy to locate, accessible, and reasonably priced, they are more likely to sell.

Displaying your products in an attractive way makes them more appealing to customers, increasing the number of customers who buy them.

Promotions and competitive prices are appealing to customers and can help you turn your inventory over quickly. A study from 2020 by (Valassis) found 88% of consumers use coupons for purchases made.

If you want those customers to start buying, you need to come up with the right pricing strategies.

Merchandising effectively makes sure that every inch of your retail space is being used to its full potential. This maximizes the exposure of products to customers and promotes interactive and visual experiences.

Imagine you were shopping at a supermarket, and when you walked in, most of the aisles were nearly bare or only had a few items (like the image below). In addition, you noticed that most of the floor was unoccupied. This is an example of a supermarket that did not properly use its available space and is thus an unappealing place to shop.

Now, imagine you visited your local grocery store, and it was overflowing with products (left image). This is a grocery store that has done a great job of merchandising its product and is making the most of its square footage. As a result, you’re more likely to stick around and buy something.

Merchandising can boost customer return rates in several ways:

First, changing up your in-store product displays is a great way to keep your customers coming back. If your shop looks different every time, your customers will want to see what you have to offer.

Second, if you are consistent in merchandising it gives customers a good sense of your brand. Merchandising can help build brand loyalty.

Merchandising helps build customer loyalty. When your customers know what they can expect from you and feel as if they have a strong sense of what your company is all about, they will be more likely to form a bond with you and be more motivated to spend money on you rather than your competition. And did you know that 65% of revenue from retail stores is from existing customers?

Lastly, if you focus on merchandising your retail store for holidays and seasons, you can drive more foot traffic to your store for short-term sales.

Take for example a clothing store that merchandizes its shop with seasonal items. Customers will be more likely to do their shopping for that season there and then come back when the season changes.

What is the role of a merchandiser?

A merchandiser is responsible for planning and executing marketing strategies to promote the sale of a product or service. This may include developing and managing advertising campaigns, negotiating sponsorship deals, and organizing promotional events. A merchandiser may also be responsible for developing and managing relationships with key accounts, such as retailers or distributors.


So what is merchandising? Merchandising is defined as “the activities involved in promoting and selling products or services.” In other words, it’s all about getting people interested in what you’re selling and then making a purchase.