What is retail merchandising?

You may have heard the term before, but not exactly sure what it means. Retail Merchandising is a process used to carry out sales in the retail industry.

Some people think that merchandising is just about products. It's not. There are much deeper thinks to consider as part of the complete merchandising process.

Merchandising starts at the root of sourcing the products. This means that retailers need to be able to have close relationships with their suppliers in order to get the best deals, both in terms of products and service. At this stage negotiation skills are a big bonus, because if you can source your products for cheaper you can make a bigger margin on the resale - and no retailer is going to turn down the chance for extra profit.

Once the product selection and negotiation process is complete it's back at the store. A large part of Retail Merchandising is the strategy that will be used to make the sale. The strategy usually includes the pricing and positioning of the product within the store. Is the product going to be better placed by the checkouts, or maybe nearer the front of the store? Also known as Display Merchandising it is important that the product is made easily available to the customers as they browse the store. If they can't find it they definitely won't be buying!

The presentation side of retail merchandising is very important. Are you using the right type of display for the products? What about colours, shapes and platforms? The visual element of product merchandising is very important. It needs the customer to feel not only attracted to, but engaged with the product on display. Some display units might let you touch, feel and use the product and these are proven to be very successful, especially in the electronics industry.

If done correctly Retail Merchandising as a process can bring great rewards to your business. The best starting point is the selection of quality products. With the correct pricing and display fittings the product then becomes appealing to the customer and you could start to see them flying off the shelves.