As retail experts, we at EST can confidently say that merchandising is one of the most important factors in creating a successful retail business. Merchandising is the art of presenting products in a way that is visually appealing, encourages customers to make purchases, and creates a memorable shopping experience. In this article, we will explore what excellent merchandising entails, the benefits it provides to businesses, and how it results in better shopper experiences and long-term customer retention.



What is Merchandising?

Merchandising is the process of planning, developing, and presenting products to consumers in a way that maximizes sales and profits. It involves everything from selecting the products to display, to designing the store layout, to arranging the products in a way that attracts customers’ attention. The goal of merchandising is to create a shopping environment that is inviting, exciting, and encourages customers to make purchases.


Excellent Merchandising

Excellent merchandising involves a combination of factors that work together to create a cohesive shopping experience. These factors include:

  1. Product Selection
    The first step in excellent merchandising is selecting the right products to offer customers. Retailers need to carefully evaluate their target market and select products that meet their needs and preferences. This requires research, data analysis, and a deep understanding of customer behaviour.

  1. Store Layout
    The layout of the store plays a crucial role in creating a positive shopping experience. Retailers need to design a layout that is easy to navigate, with clear signage and displays that draw the eye. This means organizing products in a logical way and creating distinct areas for different product categories.
  2. Visual Merchandising
    Visual merchandising refers to the way products are presented in the store. This includes everything from product displays to signage and lighting. Visual merchandising is an important tool for creating a welcoming and attractive shopping environment that encourages customers to stay longer and make purchases.
  3. Product Placement
    The way products are placed in the store can have a significant impact on sales. Retailers need to strategically place products in high-traffic areas and in places where customers are most likely to see them. This can include placing high-margin items at eye level, using colour to draw attention to specific products, and creating attractive displays that showcase products in an enticing way.


  1. Pricing and Promotions
    Pricing and promotions are also critical components of excellent merchandising. Retailers need to carefully price products based on market demand, competition, and profit margins. They also need to create promotions that are enticing and encourage customers to make purchases.
  2. Staff Training
    Finally, staff training is also an important part of excellent merchandising. Retail employees need to be knowledgeable about the products they are selling and be able to provide customers with accurate and helpful information. They also need to be trained in customer service skills and how to create a positive shopping experience.


Benefits of Excellent Merchandising

Excellent merchandising provides a range of benefits to retailers, including:

  1. Increased Sales
    The primary benefit of excellent merchandising is increased sales. By creating a shopping environment that is inviting and exciting, retailers are able to attract more customers and encourage them to make purchases. Effective merchandising can also increase the average transaction value by encouraging customers to buy more items or higher-priced items.
  2. Improved Customer Experience
    Excellent merchandising can also significantly improve the customer experience. By creating a visually appealing and easy-to-navigate shopping environment, retailers can create a more enjoyable and memorable experience for customers. This can increase customer satisfaction and lead to repeat business.
  3. Increased Customer Loyalty
    Effective merchandising can also increase customer loyalty. By creating a positive shopping experience, retailers can create a stronger emotional connection with customers, which can lead to long-term loyalty. When customers feel valued and appreciated, they are more likely to return to the store and recommend it to their friends and family.
  4. Differentiation from Competitors
    Effective merchandising can also help retailers differentiate themselves from their competitors. By creating a unique and memorable shopping experience, retailers can stand out from the crowd and attract customers who are looking for something different. This can help retailers establish a strong brand identity and build a loyal customer base.
  5. Increased Profit Margins
    Excellent merchandising helps retailers increase their profit margins. By strategically pricing and promoting products, retailers can increase sales and profits without sacrificing margins. Effective merchandising can also help retailers reduce costs by optimizing inventory levels and reducing waste.
  6. Increased Employee Satisfaction
    Finally, effective merchandising can also increase employee satisfaction. By creating a positive and enjoyable work environment, retailers can improve employee morale and reduce turnover. This can lead to better customer service and a more positive shopping experience for customers.



In conclusion, excellent merchandising is critical for creating a successful retail business. By following the above guidelines retailers can create a shopping experience that is inviting, exciting, and encourages customers to make purchases. By investing in excellent merchandising, retailers can create a strong brand identity and build a loyal customer base that will support their business for years to come.