Effective merchandising happens at the point of purchase: when a shopper goes to the store with a shopping list but is influenced by in-store actions to buy something unplanned, thanks to a well-executed marketing action.
The Power of Merchandising Interaction
Merchandising can be crucial for capturing the shopper's attention, turning the experience into something fun and differentiated. A great merchandising action is one that draws attention in the shopping space and makes buyers approach with increased interest.
Sometimes it is harder to capture attention and drive purchases, especially for products that differ from what most consumers are accustomed to.
Merchandising in Self-Service Retail
As self-service retail has expanded, merchandising at the POS has evolved accordingly. Consumers often buy on impulse, seduced by in-store actions, regardless of whether the product is a consumer good or any other category.
Merchandising brings the product to the consumer (figuratively), which is different from advertising, which does the opposite by bringing the consumer to the product. Merchandising can involve POS interventions, promotional actions, tastings, or targeted displays.
The Merchandising Experience
Merchandising convinces through experience, visualization, and sometimes hands-on product interaction. Studies show that over 80% of purchase decisions are made at the point of sale -- a high percentage that justifies investing in merchandising actions. Additional research confirms that merchandising at the POS increases sales by 20% on average.
When a consumer encounters an unplanned item with a compelling value proposition and well-executed presentation, the purchase is virtually guaranteed.
Best Practices for Effective Merchandising
- Know your shopper: understand who buys your product, when they shop, and what influences their decisions.
- Optimize product placement: position products at eye level, in high-traffic areas, and near complementary items.
- Use visual impact: leverage colors, lighting, and signage that stand out from the surrounding environment.
- Maintain execution consistency: great merchandising requires consistent execution across every store, every day. This is where field team management tools make the difference.
Measuring Merchandising Impact
Track key metrics to evaluate and improve your merchandising:
- Sales velocity before and after merchandising changes.
- Shelf share compared to competitors.
- Display compliance rates across stores.
- Photo evidence of execution quality from field visits.
Continuous Improvement
The best merchandising programs are not static. They evolve based on data, shopper feedback, and competitive intelligence. Regular analysis of field reports, sales data, and store-level performance helps identify what works and what needs adjustment.
Invest in your merchandising strategy, empower your field team with the right tools, and let data drive continuous improvement at every point of sale.
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