Cross-Merchandising
what it is and how to apply it at the POS

Anyone who works in retail knows how important it is to master strategies for driving product sales, such as cross-merchandising. Consumer behavior is changing rapidly, and retailers need to stay ahead of these trends.

This technique is growing in popularity, so retailers must be up to speed on these new approaches to gain a competitive edge and drive innovation.

Understanding cross-merchandising

Cross-merchandising is a cross-selling strategy that consists of placing complementary products near each other.

It is essential for displaying products correctly, attracting attention and informing shoppers about brands and products, ultimately driving sales toward their targets.

For example, on physical shelves in supermarket chains: the wine section will feature cheese nearby; detergent will be placed next to dish sponges; or a tech store selling phones will also display headphones close by.

This practice adds convenience to the shopping experience and can significantly boost average ticket value.

Studies by POPAI Brazil indicate that 76% of consumers make their purchase decisions at the point of sale, which is why product display excellence is so critical.

How to apply cross-merchandising at the POS

There are four main pillars for perfect merchandising execution:

• Assortment -- the right products for each type of store
• Visibility -- keeping products organized with correct material placement
• Pricing -- prices positioned next to the product, easily visible to consumers
• Promotion -- selling at reduced prices for limited periods

When applying cross-merchandising, time and route optimization are guaranteed, provided there is correct shelf execution at the POS and effective stimulation of additional purchase desires.

Understanding your customer deeply is the first step. Knowing their purchasing habits, preferences and what products they commonly buy together will guide your cross-merchandising decisions.

How to apply cross-merchandising correctly

To implement effective cross-merchandising:

• Study purchase combinations -- analyze which products are frequently bought together
• Create logical groupings -- place complementary items within easy reach
• Use secondary displays -- end-caps and islands are perfect for cross-merchandising
• Train your field team -- promoters must understand the strategy and execute it consistently
• Measure results -- track lift in sales for cross-merchandised products

Some classic cross-merchandising combinations include:

• Beer + snacks + ice
• Pasta + sauce + parmesan cheese
• Shampoo + conditioner + hair treatment
• Baby diapers + wipes + cream

Final considerations

Cross-merchandising is a powerful and relatively simple technique that, when well executed, increases average ticket value, improves the shopping experience and strengthens brand presence at the point of sale.

The key to success lies in understanding consumer behavior, training your field team and using data to continuously refine your approach. With the right technology for field monitoring, you can ensure cross-merchandising is executed consistently across every store in your network.