How To Use Merchandising To Increase Sales For Your Retail Business?

How To Use Merchandising To Increase Sales For Your Retail Business?

profile image
5 min
Featured Image

Never Miss a Beat

Get weekly email updates from Fashinza to your inbox

Fast Fashion Mobile


Are you finding ways to boost sales for your retail business? If done effectively, merchandising can be one of the strongest weapons to positively impact the overall business. The way all products are kept strategically in the store allows the customer to move around and get exposed to your merchandise, which results in enhanced basket sizes, satisfied customers, and impulse purchases. Hence, we say investing in merchandising is a smart step! Today, in this article, we will be spilling the beans on how to use merchandising to increase sales for your retail business and what can be done to achieve this. So, without any further ado, let’s get started! 

1. Group varied products on the display 

Every time a customer enters a shop, the chances are high that they are looking for something exciting and new, which can grab their attention. The primary objective of the retail business is to sell luxury and comfortable lifestyles. Hence, creating a well-maintained display with a proper balance of colors, themes and items can break the ice. If a product belongs to a particular category, keep them together in the sales area, so it becomes easier to sell. One of the most crucial displays of the year is during Christmas time. Plan a strategy where you can display your products as soon as possible. 

If you want to sell Christmas trees or Christmas cups, rather than selling them from nowhere, try to create a small section as the “Christmas area” and put these items there. It will attract the buyer to make a purchase. Additionally, ensure that there are not too many colors on display, which might confuse the potential buyer, whereas an adequate amount of products needs to be here. Holidays are the best time when people visit your store. Thus, your display must look fresh and new during the last days of the season. 

2. Select a full-fledged merchandising strategy 

Selecting a merchandising strategy is an extremely important aspect of using merchandising in the right way to increase sales for your retail business. With millions of retail businesses at every corner of the city, how is it possible to make your stand out? Once you have the category role, a combination of strategies needs to be used at all levels of the hierarchy. Thus, the customer’s decision tree should be considered as it shows how the potential customer shops and decide what products to buy. Here are some of the most sought-after merchandising strategies to look for - 

  • Traffic building can be regarded as one of the ways to draw customers’ attention to the store or a specific section in the store. 
  • Transaction building is yet another way to generate a profit margin while increasing the total spending in a particular category. 
  • Profit generation is used for products that have high-profit margins. 
  • Turf defending is another merchandising strategy that protects a category’s overall market share compared to the competitor. 
  • Excitement generating is a most commonly used merchandising strategy that builds a sense of excitement and need for the product. Generally, new arrivals, certain promotions, or limited edition products are a part of this. 
  • Image enhancing is the last merchandising strategy used to improve the overall image of the retailer in the eyes of the customers.

3. Display the products customer desire to purchase 

Everyone desires expensive luxurious products. Therefore, rather than displaying cheap and basic products, it is always better to attract customers toward shiny goods. A good display can attract customers to make a purchase. Whether a person is buying a simple or a luxury product, there is always a chance to spend on an expensive product. 

4. Add exciting products at the entrance

The entrance of the retail business needs to be exciting enough to force a potential buyer to enter. Place the most valuable and exciting products at the entrance, so every time a customer passes by, they find reasons to enter the shop. Products displayed at the entrance need to be placed in a proper sequence and perfect order. Additionally, lighting plays a crucial role in this scenario; hence, add a direct light to add products, so that they become a catching point for all customers and even people passing by. 

5. Communication is the key

Communication is the key to any business. No matter you’re running a retail business or working as an engineer, simple and clear communication can make things better. When working with a group of people, effective communication is one such practice that can take your business to another level. Using small and well-phrased messages on the walls and racks of the shop helps to convey messages easily. It influences customers and allows them to understand what you’re selling, the aim of selling this product, what are the product features, branding, and even the price of the product. Note that these messages should be concise, visible, meaningful and clear so that they can easily grab attention. Else, no one is interested in reading paragraphs in a retail shop. Additionally, the font and the writing style play a significant role here. Choose a font that blends well with the company’s branding, so everything looks like a sink. Additionally, do not go overboard when choosing these phrases as their only purpose is to attract sales. 

6. Keeping an eye on the weekly sale 

weekly sale

Keeping a close eye on the weekly sale will help you analyze bestsellers. Additionally, it gives an understanding of what products are running out of stock, what products are in most demand and products which are not grabbing customers’ attention. Rather than placing single products on display, it is best to add large-quantity products, which creates an illusion of more. If there is any product on the display which does not sell, replace it with the most selling product and find a new spot for this one. So that your potential buyer does not gets bored. Based on the sales, keep changing your displays so that there is always something new for the customer. 


Today, we live in a competitive retail market where investing in purchasing is truly worth it, which leads to increased sales. With thousands of retail businesses at every corner of the city, it might be difficult to make your stand out. However, with the proper merchandising strategy, one can easily grab customers’ attention. All you need is a proper strategy to make your product stand out without brainstorming. Running a retail business is no easy deal. It requires a lot of attention to detail to bring out the best and promote sales. Today, in this article, we highlighted six major points on how to use merchandising to increase sales for your retail business; if used wisely, this merchandising strategy can take your business a long way! 

To know more about the right way to use merchandising to increase sales for your retail business, Visit Fashinza


Share this Story

Instagram Icon
Instagram Icon
Instagram Icon
Discover Data Led Trendy
Designs With Fashinza