Merchandising Strategy | 4 mins read

7 Merchandising Strategies to Boost Sales

7 merchandising strategies to boost sales
Hanh Truong

By Hanh Truong

The retail landscape can be competitive, as more businesses are being established to meet consumers' ever-evolving preferences and demands.

With an effective merchandising strategy, companies can cultivate a unique and dependable operation that attracts shoppers' attention to their products and builds loyalty for their brand.

Retail vs. Merchandising Strategies

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When planning how to successfully promote products and to ensure that a company's merchandise has value to customers, retailers must consider two types of strategies.

First is a retail strategy, which encompasses how a business can effectively invest its resources to meet customers' needs. This process involves outlining how products and services are developed and sold to consumers.

The clothing brand, Levy, established 3 key parts to a retail strategy.

  • Identifying the market that the business will serve
  • Determining the products, services, pricing, and location that will satisfy their market's needs
  • Deciding how the business can have a long-term competitive advantage

The second crucial strategy is merchandising. This involves techniques that help promote sales and profits. The main focus of a merchandising strategy is to implement tactics to advertise goods and services and to stimulate customers' interest.

Executives also have the objective of creating a positive shopping experience for their clients, both in-store and online, and cultivating a loyal consumer base.

7 Best Merchandising Strategies

Well-defined merchandising strategies can help retailers maximize their revenue and increase sales. To attract customers and maintain their interest, businesses should implement the following best practices.

1. Consider the Customer's Journey

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A customer's journey refers to all the stages a shopper goes through when they interact with a brand's products or services. Many customers, for instance, prefer coming into a store so that they can physically experience a product.

Retailers can use this to their advantage and put goods on display so that customers can feel, see, and try out a product before buying it. This will allow shoppers to actively engage with the company and ensures they will be satisfied with their purchase.

2. Emphasize Branding and Storytelling

Executives should determine how to convey their brand through their product and create a narrative about their mission or values. For example, unique packaging or a small statement printed on an item's label can educate consumers about the company's brand.

Additionally, management can use their social media to demonstrate their tone and unique style. This can help customers connect to a brand emotionally and will drive them to be loyal to the company.

3. Identify What Customers Do Not Like

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Not only should retailers understand what their consumer base wants, but they should also identify what they do not like. Oftentimes, a shopper will not buy a specific product because of its packaging or the way it is displayed in the store.

By determining what factors push customers away, businesses can take the right steps to improve their goods.

4. Reposition Displays

The placement of an item on shelves is critical in drawing a customer's attention. Retailers should consider positioning their profitable and faster-moving products at eye-level on shelves or have them on display at the center of their store.

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By being informed of new retail merchandising trends, companies will gain an advantage over their slower-moving competitors.

For example, statistics for 2021 show that influencer marketing and ethical brands are on the rise. Clothing retailers can improve their merchandising strategy by incorporating these trends into their operations.

Marketing teams can scout for people on social media who have large followings and a similar style to their brand, and have them advertise their clothing. Or the company can innovate its production processes, include more ethical practices, and inform their consumers about these changes.

6. Minimize Stock Outs

Consistently being out of stock of certain products can negatively impact a company's bottom line and customer base. When goods are unavailable, the retailer will lose out on a sale and customers will be more likely to purchase from competitors.

Businesses can have better insight into their stock levels by implementing inventory management software. These cloud-based tools allow managers to track their inventory in real-time and receive alerts when product quantities are low. This will help retailers maintain optimal levels of inventory at all times to meet customer demands.

7. Ensure Collaboration

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With full collaboration with executives, managers, and employees, the company will be able to effectively attract customers and make sales.

Merchandising strategies should be comprehensively communicated to the sales team to ensure that they know how to display and advertise the store's products and services. Since employees work directly with customers, collecting their feedback can also help executives make improvements to their strategies.

A successful merchandising strategy has many components, but with careful planning, companies will be able to captivate customers and outperform their competitors.