Back to Basics Visual Merchandising

Everything you need to know about visual merchandising is in this one picture.

 

Photo credit: Marcus Gibson. The photo was taken up in the mountains, near an extinct volcano and an artisan village Batur, Indonesia. I saw it on hois Facebook page, and he was kind enough to allow me to use it.

• It tells a STORY: we are in the fresh fruit business.
• Each product (category) is distinguishable – no visual noise.
• The product is ‘framed’ by blue material cover – without unnecessary signage or lifestyle imagery that would just create visual clutter.
• Every display has a focal point.
• The displays are neat and tidy.
• The products are displayed as it would be used/ consumed.
• The products are hygienic – as well as the environment – especially considering the location.
• They use lines (pyramidal shapes) to lead your visual inspection and give your eye an easy entry point.
• They use colour to contrast adjacencies – and colour-coordination of the pots in the front row.
• They use rhythm (pineapple basket +4 others in a row, as well colours repeating)
• There is balance (6-5-6). And simply ‘join the dots’ by drawing an imaginary line from the blue pot in the middle row left to the other blue pots.
• Best use of available light.
• Accessible and convenient to shop. Most items on the top shelf (less accessible) are back-up stock, which add to the presentation, but still allows efficient service – and nothing on the floor.

Of course I am taking artistic license to say ‘everything’ you need to know. But I am sure you ‘get the picture’ (pun intended) and I would even go so far as to say that NOT having the price points there, gives the owner of the stall an opportunity to engage with customers because there wouldn’t be much else to discuss.

Good merchandising is not hard. Despite what some experts may say, it ONLY has to make sense for the customer – and move your stock. You can use your instincts and common sense to achieve this- just like this peasant in a remote Balinese village simply get these basics right.

There is a critical role that a designer plays in translating a business model into a retail experience. But keeping your merchandise organised and clean (= shoppable) isn’t that role.

Most retailers simply get lazy and allow ‘merchandise creep’ to overpower the original design by allowing a plethora of spinners, and dump-bins to be progressively bastardise any attempt at effective visual communication.

PS: To get some confidence and an insight into smart, pragmatic approach to visual merchandising, GO HERE.

The perfect retail employee

The ideal staff member: works hard, for free
 

Here is some research that brings some really bad news. But I will also give you some good news. (The research has been conducted by him! research and consulting.)

• Three categories (lotteries, magazines and newspapers) are in 76% of shopping baskets.
• Average visit frequency is 1.6 (with the lottery shopper at 1.9 times, the real figure is worse) and this is well below the other convenience channels
• Average items purchased = 1.75 with almost 60% buying one item only.
• 81% of shoppers were not aware of any promotional messages

Is this employee not your favourite employee too? Meet the silent salesman that works (maybe) at every newsagent for free: Mr Merchandise.

In some newsagencies, Mr Merchandise sits around all day. Are you putting him to work in your business?

Here is one simple strategy that you can use to put Mr Merchandise to work: Cross Merchandise.

That is; put associated and related products together. There are 3 types of cross merchandising that you may apply.

1. Inter-category: Associated product with some of your core products.

Example: Ribbons with gift bags

2. Intra-category: Related products paired within a category, usually slower sellers or new sellers with your hot items.

Example: The belts with the dresses

3. Trade partners: Introducing an item that is NOT usually carried with one of your core sellers.

Example: Accessories from the local Jeweller with your Bag.

Of course you know all that, right? But with thousands of possible combinations, do you exploit them all - consistently? Probably not.

The list is too long for me to generate one here, so here is better idea: Make a template for your staff to generate ideas of products that can be paired together as cross merchandising opportunities.

 
In this image you can see how I used a matrix to pair products. It would be impossible to list the thousands of SKUs, but identify the key categories as follows:

 

List the core products that sell well week in and week out. Then identify the range of products that:

• you want to promote
• have high margins but don't sell well
• are new
• don't sell well and are 'last chance'
• special offers (buy-in or tie-in stock including consignment)

Mix them up and list them along the X and the Y axes on your template. Evaluate every cell.

TIP: Do several of them and allocate one to every staff member and ask them for their ideas and views. You may just be surprised.)