What is Visual Merchandising and Why is it Important?

In a retail space, visual merchandising is the technique of displaying products attractively and highlighting their features to generate sales. The goal of merchandising is to draw in shoppers and convert them into customers. Done effectively, retail visual merchandising is a successful marketing strategy.

Your customers, especially Gen Z shoppers, want an experience when they enter a store. Seeking out a brick-and-mortar store instead of shopping online is an opportunity for consumers to linger, browse, touch, test, and buy products. The experience your store offers matters because even the best products can sell poorly if they don’t have the experience to match.

Consider your own store’s shopping experience. Walking into a store where products are placed on shelves in a non-aesthetic way with plain visuals is not compelling to buyers; whereas a store with visually appealing displays, bold retail fixtures, and eye-catching signage captivates customers and leads to longer time in-store with higher conversion rates.

Retail displays offer an opportunity for customers see, touch, and test your products. By interacting with a product in a compelling and well-designed experience, a consumer can see how it will fit into their lifestyle and feel motivated to purchase on the spot. Merchandising helps tell a story that strategically engages your shoppers and boosts sales.

Using a planogram to make your visual merchandising successful.

A planogram tool assists in planning the product layouts and promotes efficient management of your store’s space. An effective planogram layout enhances the shoppers’ experience when searching for specific products and elevates the browsing experience. Check out planogram tools on dstewart.com HERE.

JBL Planogram Tool available on dstewart.com.

Creating Impactful Display: 5 Tips

Tip 1: Use Lighting

Lighting is a powerful yet simple and cost-effective way to create ambiance and highlight products. You can utilize spotlights, backlighting, and colored lights to draw shoppers’ attention.

This Sony boutique display utilizes lighting to draw in shoppers.
University of Arizona college store uses an LED JBL logo to bring attention to their assortment.

Tip 2: Use Product Demonstrations

Product demonstrations show shoppers how products work. Set up a demonstration area within a display or even have a sales team member show the products to customers.

Tip 3: Use Eco-Friendly Materials

Sustainability is a growing concern, especially amongst Gen Z, and you can make your displays more impactful by highlighting eco-friendly products. Use signage or other messaging to educate customers about the sustainability of your products and displays.

Tip 4: Use Negative Space

Sometimes less is more and using negative space can help highlight certain products and create a clean, uncluttered appearance.

Tip 5: Use Color

Color impacts customers’ emotions and is a key design element in merchandising. Black, red, and orange can encourage impulse buying and including a pop of bright color can draw the shopper’s eyes (and feet) to a display.

This wall display by XP Retail uses strategically placed bright colored shoes to catch the customer’s eye.

Merchandising Trends for 2024

Cross Selling

Retailers are emphasizing cross-selling or bundle opportunities in displays to drive sales. Cross-selling can increase revenue, improve customer satisfaction, and offer a more streamlined buying journey.

Interactive Displays

Incorporating touch screens, motion sensors, music, and other interactive elements in displays has increased in popularity and will continue to be adopted in stores this year.

Augmented Reality

Augmented reality (AR) superimposes a computer-generated image in the real world and has become increasingly popular in the retail space. Stores use AR in displays to create a more immersive shopping experience to help drive sales.

User-Generated Content

By creating humorous, artistic, or imaginative in-store displays, retailers are getting noticed by their audience on social media when shoppers post a photo to their social media.

In May 2021, Victoria’s Secret created this over-the-top outdoor display to launch its new fragrance and customers posted their own images on social media with #likeabombshell.

Final Thoughts

Visual merchandising is a powerful tool when done right. By combining marketing principles, retail merchandising knowledge, and creative delivery, retailers can effectively leverage the space and layout of their store to present their inventory in an eye-catching way that turns browsers into buyers.

Sources:

https://explodingtopics.com/blog/merchandising-trends

https://ascenticretail.com/top-trends-happening-in-retail-display-in-2023/

https://www.rmservicing.com/articles/what-is-visual-merchandising/#:~:text=Visual%20merchandising%20is%20a%20marketing,space%20to%20generate%20more%20sales

https://fitsmallbusiness.com/visual-merchandising-guide/

https://www.indeed.com/career-advice/finding-a-job/what-is-visual-merchandising

https://www.insiderintelligence.com/content/how-reach-gen-z-2024-according-new-data

https://uk.indeed.com/career-advice/career-development/what-is-visual-merchandising#:~:text=Visual%20merchandising%20increases%20sales%20and,good%20impression%20of%20a%20brand

https://www.drglobal.com/insights/visual-merchandising-for-a-modern-retail-experience/

https://www.getdor.com/blog/2020/03/23/creative-retail-display-examples/

https://www.id8studio.com/sony-boutique-headphones-display/

https://www.xpretail.com/retail

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