Basics of Retail Merchandising
Updated: Jun 9, 2020
The competitive Canadian market has forced retailers to plan strategically in order to deliver the most value for their clients. As a result, businesses need to not only attract customers into their store, but they should encourage them to browse around and shop more. This is why retail merchandising is so important for retailers who want to generate revenue and attract customers.
What is Retail Merchandising
Retail merchandising involves a variety of strategies that brick and mortar stores use to engage with their customers and inspire them to buy as many products as possible. These strategies cover everything from new store setups to store remodels, fixture installation, category resets, and retail signage. These strategies also involve an analysis of all behind-the-scenes data to determine what’s working and what’s not.
Why is retail merchandising important?
Retail merchandising involves coordinated efforts to improve the look and feel of your store. This helps attract customers, reduce their confusion, encourage them to buy your most profitable products, and keep them in the store for longer.
If the layout of the store takes too long to figure out, customers may become overwhelmed and leave. Retail merchandisers can arrange the store and display the products in such a way that guides the customers’ path and helps them feel relaxed as they purchase the merchandise.
Retail merchandising companies in Canada
When choosing merchandising companies in Canada, it is important to look for people who understand both colors and trends. The company needs to have a lot of creative people who can design the store in a way that draws the customer towards particular products and piques their interest. The company should also understand the effects of fast-moving or dead products and the impact of serendipity when buying products from brick and mortar stores.
At the very basic level, the merchandising company performs the following retail services:
1. New Store Setups: This involves getting the new store ready by purchasing fixtures, lighting, signage, and décor that attracts customers.
2. Fixture Installation: The fixtures act as the backbone for the store’s layout and help display the store’s products.
3. Signage: Humans are very visual creatures. Signage helps attract customers to your store as well as draw their attention towards various promotional products.
4. Store Remodels: A company that has purchased a store may need to remodel it to align with the branding and layout of their other stores.
5. Store Resets: Sometimes a retailer needs to rearrange their store and products when marking certain seasons or holidays. A good retail merchandising company needs to reset the retail business without negatively impacting the day-to-day operations of the store.
6. Category Reset: A category reset reorganizes the products on your shelves to make it easier for customers to notice specific merchandise. In most cases, the retail merchandiser places newer, profitable, or best-selling products at eye level so that customers can focus on them. Category resets help maximize turn, curb out-of-stocks, and reduce markdowns.
7. Store Audits: Audits help analyze store data in order to provide stats that increase sales and customer satisfaction. For example, a store may carry out an audit to ensure expired products are quickly removed from the shelves.
Paying a little attention to retail merchandising and other retail service can have a huge impact on your overall sales and profits. When choosing a merchandising company in Canada, it is important to work with one that has lots of experience and the expertise of various professions, including architects, contractors, and digital marketers. These professionals can help you solve complex merchandising challenges in order to create a space your customers will love to shop in.