Visual Merchandising for Retail Stores

August 22, 2024
Digital Transformation
Retail Operations

Color affects visual merchandising by attracting people within the first five seconds, which communicates an immediate association or emotion.

Mark Clifton

Retail stores are dedicated spaces where customers are drawn in, attracted, and ultimately convinced to purchase. Visual merchandising is one of the techniques to convert by creating an enticing retail environment.

Visual merchandising is the practice of strategically displaying products in an aesthetically pleasing way to drive more sales and enhance customers' overall shopping experience.

Let's explore visual merchandise more and understand how it increases sales for retail businesses.

What is Visual Merchandising in Retail Stores?

Visual merchandising includes successfully planning and executing in-store product displays to increase shopper engagement. The ultimate goal of visual merchandising is to attract customer attention and increase sales.

Among the key aspects of visual merchandising are product packaging and display on shelves. This means the practice involves everything that impacts consumers' visual perception of your store, your products, and how they interact with them.

Visual merchandising in retail includes a detailed analysis of merchandising data, in-store merchandising, product organization on display shelves, and inspired execution of promotional displays.

5 Elements of Visual Merchandising

Here are some of the key elements to nail your visual merchandising strategy:

1. Space

One key aspect of visual merchandising is the use of space. That is, how much space is ideal between different items or products. This is why bigger brands put adequate space between merchandise when displaying it in-store to convey luxury. On the contrary, discount retailers like to keep more products on their shelves, leaving little space between them.

2. Focal Point

The focal point refers to the part of the display you wish people to focus on. In most cases, it is placed at the eye level. Your focal point could be a single product (or a group of products) you want customers to notice. Have you noticed that Crocs stores place their most coveted kids' clogs like CoComelon and Peppa Pig at the eye level of a typical toddler? They know their audience very well!

3. Colors

The use of varied colors can help generate different emotions in consumers. Red conveys a sense of urgency, commonly used in “SALE” signs. Likewise, blue stands for trust, reliability, and responsibility, so it is more popular in financial services.

4. Positioning

Positioning of products is another key factor in visual merchandising. Most consumers browse product services or items on shelves at eye level. This means they’ll focus more on things right in front of them instead of looking at the display's sides or back.

5. Lighting

If used strategically and appropriately, lighting can help you attract customers to specific areas or parts of your display or store. So if you wish to keep focus on particular products more than others, placing them under bright lighting is not a bad idea.

Types of Visual Merchandising

The various types of visual merchandising are:

  • Store layout: This is how a store is laid out, including the placement of products, the flow of foot traffic from front to back of the store, and the position of points of sale.
  • Interior displays: The displays arranged inside the store include both products and decor.
  • Point of purchase display: This includes the decor, the signage, and the physical structure of points of purchase.
  • Mannequins: This includes the type, styling, and positioning of mannequins and how effectively they communicate your apparel or accessories to your customers.
  • Outdoor signage: They communicate the business and set the tone for your space.
  • Interactive Displays: Touchscreen technology is an excellent way to get your customers to engage with particular products.
  • Bundling: It refers to displaying products together to show customers how they might use them collectively.
  • Window displays: These are an important aspect of visual merchandising that can catch the attention of people passing by your store, leading to more footfall and potential customers.
  • Seasonal displays: Most retailers use seasonal displays as visual merchandise to tell different stories during seasonal events such as summer holidays, Diwali, Christmas, or Valentine’s Day.

Advantages of Visual Merchandising

Regardless of the nature of your retail store, it can benefit from the idea of visual merchandising. Some of the benefits include:

1. Showcase your brand

A well thought-out visual merchandising strategy reflects your business's unique identity. If you have a franchise business, you would want your franchisees to have identical branding so that all your outlets maintain brand consistency.

2. Increase sales

Visual merchandising enhances your business's sales by directing people to the products they seek and speeding up their buying decisions.

3. Engage the visitor

A visually attractive retail store is instrumental to build an excellent first impression. It encourages customers to enter the store and get the products they seek.

Tips for Better Visual Merchandising

Regardless of how good your retail store's products are, customers will walk away if they are displayed in an undesirable way. There are several ways to display products effectively in your retail store.

Here are some of the top visual merchandising tips for your retail store:

1. Leverage window displays to bring customers in

The window display is the first point of contact with your customer and helps create a first impression about whether to enter your store. Make your window display strategic and ensure that it stands out.

Use colors and innovative display techniques to attract walk-ins.

2. Update your theme regularly

Update your store theme regularly and ensure that it is focused on your current product line or events. If you are in fashion and red is in vogue, create a vibrant window display that is big on reds.

Also, updating your theme regularly keeps returning customers interested.

To summarize, visual merchandising is an interesting concept that is largely about the ‘look and feel’ of your retail store and how to use it to improve sales while ensuring an exceptional user experience.

Remember, always target specific displays or products at a particular customer persona.

When done well, visual merchandising can make your retail store look very inviting to existing and potential customers, help you grow sales significantly, and make customers feel comfortable browsing your products and making the purchase decision faster.

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