Merchandising: What Is It, And How Is It Important?


Merchandising is referred to a kind of activity that assists in boosting the sales of a product to consumers, particularly in the sphere of retail trade. When the matter comes to stores, it is referred to the variation of products obtainable for sale, and these products are displayed in a manner that can stimulate the interests of consumers. As a result, consumers end up buying them. And in the retailing sector, visual display merchandising is meant sales utilizing product design, selection, pricing, packaging, and display that entices people to spend their money. According to marketing experts, merchandising is regarded as the exciting side of retail no matter whether it is in supermarkets or upmarket fashion stores.

What does merchandising entail?

Commonly, merchandising is meant the endorsement as well as the sale of products. Company merchandise is meant for retail sales, and its mission is to affect consumers’ buying decisions. Nonetheless, people must not confuse merchandising with the sale of products, as the former is meant the procedure that results in the sale of products or services. Merchandising encompasses the determination of quantities, forming display designs, coupons or discounts, effective marketing policies, and setting costs for products and services.

The effective strategies

Merchandisers use various effective strategies for enticing buyers to purchase goods and services that include in-store and window displays, well-stocked shelves having crystal clear signage, a strategic grouping of items, the importance of some promotional products, freebies, and samples, and many in-store endorsements. Again, in this matter, you can’t even ignore the matter of neatness and cleanliness as they are hugely important factors and tend to be synonymous with professionalism. The online store of a business must utilize different merchandising policies to grab the attention of online shoppers.

The undeniable significance

Merchandising augments salesfloor productivity, and it can assist in controlling costs by assisting retailers in augmenting sales productivity. Productivity augments when a retailer increases sales using the square footage of his present salesfloor as well as the number of employees. Nearly every measure of retail productivity, like sales per sq. foot and gross margin, gets affected by merchandising. Again, merchandising also turns the salesfloor highly productive as it suggests some impulse purchases. Additionally, it helps in arranging a store besides suggesting project ideas. Merchandising also reminds customers of products that they tend to forget.

Company merchandise complements advertising as it assists customers in finding sale items. Good merchandising assists in increasing productivity as it proposes improved customer services. Employees spend their time providing customers with the knowledge of products they require for solving their home improvement issues. Again, good merchandising also makes the selling of products and services highly rewarding. When more and more customers shop for themselves, retailers develop novice retailing skills, and it assists in advancing and gaining more and more responsibilities in a company.


If you think merchandising involves only attractive displays, then you are wrong as it also incorporates the salesfloor designs, the presentation of products, the location of the signage, and various other things.