IMD

Effective store merchandising extends further than just the floor display. It includes the planning, buying and selling of merchandise and forms an  integral part of selling and has challenging functions.
Retailers operate in a highly competitive market. Customers have more choices than ever before and retailers increasingly compete for the attention of customers, just to keep their stores in business. Retailers are also aware that money spent on activities like store promotions, displays, posters and advertisements is lost if customers do not turn up or leave without purchasing anything.
The notion of retail thrives on making even ordinary-looking objects and mundane activities appear dynamic and exciting. Therefore, retailers should strive to make even the most static of displays look novel and innovative. The point of merchandising is to make customers feel there is something new and innovative to look at and shop for every time they enter to make a purchase.
Merchandising is more than just the arrangement of products on the shelf. It is a vital element of the business image. It should be considered when designing the logo, business cards, brochures, letterhead, packaging and product mix.
According to Maxwell Wallace from Demand Media, neglecting your merchandising strategies can have a negative impact on the image of your brand. Merchandising is also about understanding the way customer’s shop and using this knowledge to position merchandise to increase sales.
When merchandising strategy for merchandising is planned, you relate to the customers’ experience, from their first sight of your store. The perception each customer has of your store can be greatly be influenced by what they see displayed. An important element for store merchandising is the look of the storefront; if this is accomplished successfully, the entrance will reflect on the personality of the store and give a glimpse of the merchandise available.
There are certain aspects to consider, such as creating an environment which will attract customers, allowing them to be comfortable when shopping and encouraging customers to return to your store.
Other considerations include:

• Is the store front and all display windows attractive and inviting?
• Is all signage clear, professional and legible?
• Is the store interior welcoming and comfortable?
• Is merchandise presentation appealing?
• Are seasonal and high-margin merchandise placed in high-profile locations?
• Is the store appearance professional?

• Don’t treat end caps as the be-all and end-all – customers don’t go up and down each aisle, so if you just use those you will miss a lot of customers.
• Avoid stand-alone merchandise in the aisle, which interrupts the continuity of getting things seen by the customer.
• Don’t place too many items high up, especially if you are in an area with a large elderly population – the goal of the store is to showcase products so customers can see new things and get them.
• Avoid clutter; just put up signs which the customers will use.
• Do not hide your price tag; it must be easy for the customer to see the price tag in order for them to know the price, even without the assistance of the sales staff price tags should be placed in highly visible places and in the spot place.

Promotions and private labels have been seen by many as an indicator of growing retailer power. Since a large portion of most retailers’ revenue and profit comes from selling manufacturer brands, which many of their competitors also offer, building their own equity is a particularly challenging problem, but one with big potential rewards.
Retailer brands are typically more multi-sensory in nature than product brands and can rely on rich consumer experience to impact their equity. Retailers also create their brand images in different ways, such as attaching unique relations to the quality of the service, the product range and merchandising, pricing and credit policy.
In most consumer industries, the image and equity of the retailer brands also depends on the manufacturer brands they carry and the equity of those brands. Retailers use manufacturer brands to generate consumer interest, support and loyalty in a store.
According to Melanie Mclantosh of Inspire Retail Solution, one of the exciting things about retail is that it is dynamic. “If you don’t grow and change, customers assume you have nothing new to offer. You don’t have to renovate the entire store, but rotate the merchandise, change displays and change signage to make the customer feel there is always something for them to see or experience.” In most industries one can find several examples of retailers who carry only their own private-label products, like Spar, Woolworths, Pick n Pay and Shoprite Checkers. Private label products may have their own unique brand names, or be branded under the name of the retailer.
They allow the offerings from competing retailers, although often without the support afforded to manufacturer’s brands. Some retailers have managed their brands more effectively than others, as is evident in their performance.
Retail store managers should have organisational skills that include the ability of paying attention to detail, as well as following up on important matters. The job involves the capability of managing multiple priorities along with management skills like communications, recruiting, training and coaching.

Tips to becoming a successful retail store manager from Buzzle.com:

• The customer is always right: That age-old adage holds true even today. The customer is the most important aspect of any business. Hence, as a retail store manager, you need to ensure the whole team understands this concept, and behaves accordingly.
• Make the customer feel special: Everybody likes feeling special. When you are with a customer, give your exclusive attention and listen closely to whatever they may be saying to you. During that time, don’t let anything else interrupt you.
• Please the customer: Although this is often flaunted, it is seldom practiced. As a retail store manager, go the extra mile to make the customer feel pleased, especially as a measure of calming their displeasure about something. For instance, some special store giveaways can be packed with their purchases.
• Appearances do matter: Although you may dismiss it as a trivial aspect of a superficial industrial society, there is no escaping the fact that the first impression of a store   – including how the staff dress and behave – does matter. People do care about the ambience of where they shop.
• Items should be shown to advantage: Apart from displaying merchandising attractively, you should also ensure that items are placed in such a way that they draw the customer’s attention. Hiding or stacking merchandise will not attract the attention of the customer.
• Clear up shopping areas: While filling shelves and other display areas, clear up on other areas. Shopping areas that are easy to navigate will result in more sales.

Retail merchandising is not just about putting products on a shelf. It is about planning, product mix, customer experience and implementation. A good merchandiser will view their store through the eyes of their customers – right from the moment they enter the store up to the moment they leave. One important thing to remember about merchandising is that retail trends change, so merchandising is not a once-off exercise. It is about moving with the times and creating continuous appeal to customers. This may mean bringing in new product ranges, re-arranging your store and placing seasonal messages in your shop windows. It is about being in touch and ensuring that shoppers want to visit your store and part with their hard-earned money.

A personal comment from the editor:
Having had the dubious pleasure of shopping recently, as instructed by my wife, at a well-known retailer, I was amazed as I was irritated by merchandisers that get in the way of products and store staff who believe this is a time for them to have a loooooong chat in the middle of aisles and ‘major’ intersecting aisles, empty boxes and trolleys placed in the aisle so as to annoy, rather than thinking of the customer. The store manager – nowhere to be seen! CC