Guide

Visual merchandising for your retail business

Advantages and disadvantages of visual merchandising

Visual merchandising is the arrangement of products to maximise sales. Investing in visual merchandising can improve the buying experience for customers, be a strong marketing tool for your business and increase customer loyalty. However, good visual marketing will cost you time, effort and money so you need to be willing to make the initial investment.

Advantages of visual merchandising

The potential advantages of good visual merchandising include:

  • Increased customers – Visual merchandising can increase the amount of customers who notice and enter your retail business. Merchandising should start outside where customers first see your premises (eg signage). If they like what they see and enjoy the experience you create inside, this should encourage them to return to your store. See understand your customers’ needs.
  • Increased sales – Effective visual merchandising can have a clear and positive effect on retail sales. Clear pricing, well-stocked shelves, simple displays and prominent sale signs can help drive profits while improving the shopping experience for your customers.
  • Maximising the potential of your retail space – A creative approach to merchandising can help you to get more out of your space without the need for expansion or renovations. The layout should flow easily and direct customers to important items and displays you want to highlight. Your customers will begin to associate your clear and attractive merchandising with a positive shopping experience. This should encourage them to return.
  • Getting the most value out of products – If you have products that are difficult to sell, clever visual merchandising could help you to market them without having to reduce their price. Similarly, you can place low-priced items in less prominent spots to encourage the sale of high-margin items.

Disadvantages of visual merchandising

You may find that there are some barriers to introducing visual merchandising techniques within your retail store. These include:

  • Changing layout and space – You may be required to spend time rearranging aisles, shelves, display fixtures and the general layout of the interior retail space.
  • Increased demands on staff – The success of your visual merchandising techniques may mean you have to handle more daily customers, more sales and more deliveries. There may also be more customer service issues, longer hours and the need for more staff.
  • Expense – If you install new fixtures, create new signage or improve the appearance of your retail space, costs can quickly add up. However, overcoming the challenges of planning and managing visual marketing can lead to profitability and increase customer loyalty.