Increasing profits with visual merchandising
Despite many major retail chains showing signs of difficulty — including Marks & Spencer and House of Fraser — there is still opportunity for retail stores to maximise their sales revenue.
For many years, visual merchandising has been a proven marketing technique. However, the problems dominating retail in 2018 make executing a successful visual merchandising strategy especially important if you want your retail brand to survive and prosper.
To assist in your pursuit of an excellent visual merchandising campaign, this is your step-by-step guide to designing and launching a successful visual merchandising strategy to boost your brand’s profit margin and help you sail through the tough times ahead for the industry…
Why retail needs visual merchandising more than ever
The process of visual merchandising involves the careful planning and redesigning of a shop floor — including shelves and product displays — to provide a more engaging, exciting and ultimately profitable consumer experience.
Visual merchandising isn’t superficial however, it’s more than just placing a few products together for visual effect. There’s a science behind why certain presentations, structures and even colours deliver a better experience than alternative arrangements, and it’s been established that a strong visual display can raise turnover and strengthen your brand; even inspiring customer loyalty in the process.
According to chief executive officer, Bob Phibbs, who runs The Retail Doctor retail consultancy firm in New York: “Visual merchandising is everything a shopper sees at your store that hopefully leads to a remarkable shopping experience. It is the unspoken language retailers use to communicate with their customers.”
So, how do you go about setting up a visual strategy that would make your company stay clear of falling into the difficulties that the likes of Toys R Us and Maplin have suffered?
Highlight the wants, not the needs
By 2020, global retail sales are anticipated to hit USD 27.73 trillion, so there’s clearly scope for your brand to maximise its profits and get a share of this growth in the next few years.
The first step to achieving effective visual merchandising is what products you will use to attract consumers. A tip here is to go for what you think your customer wants — not needs. According to a study by Raj Raghunathan and Szu-Chi Huang, emotional responses are influential in our purchasing choices — which is why you should focus on giving the customer something to desire.
Place your newest, most high-end products in your focal visual merchandising displays to attract the customer looking for a treat purchase and enhance your chances of high-cost conversions. You could also use life size cutouts alongside these displays to present promotional offers for luxury items that you want the consumer to take notice of — and buy!
Grouping together displays
Placing the right products together is important if you want your strategy to be a success. A recent report found that exposing your shopper to the maximum number of products is a tactical method when carrying out visual merchandising. However, don’t make your displays look crowded. Utilise different display furniture, such as mannequins, racks and shelves — whichever suits the product you’re merchandising — and bear in mind that focal points boost sales by a reported 229%, so ensure that you effectively direct your consumers when they enter your store.
There are a few theological approaches when it comes to your visual merchandising The Pyramid Principle dictates that you create a triangular display, with the biggest item in the middle and the smallest on the outside — which ensures that your display doesn’t look flat and boring. Instead, it will catch the eye, as the products seem to ‘fall’ down towards the viewer. Equally effective is the Rule of Three. Within this, you create attractive asymmetry that shoppers will find engaging. Apparently, humans see asymmetry as normal — which means they pay less attention. By placing product in groups of three, you can create a noticeable imbalance that forces the eye to take in each product individually, as opposed to the display in its entirety — excellent for effectively advertising each item.
Contrasting colours at the opposite side of the colour wheel can help grab attention — think black and white or scarlet and jade — but creating a multi-coloured display of uncoordinated colours may turn people away. According to Jessica Clarke, a retail merchandiser and stylist: “Things that are easy to look at will be passed over, and things that are too outlandish will be offensive to the eye.” And this goes for colour.
Creating a ‘decompression zone’
A useful tip for creating a tranquil shopping experience for our customer is deploying a decompression zone. This area of a shop is found just a few feet inside the main entrance and is believed by psychologists to elevate a shopper’s mood, acclimatise them to the store’s surroundings and get them ready for the shopping experience.
Experience is everything, you don’t want a customer shopping in your store in a negative mood. An effective decompression zone will help transport your consumer from the hustle and bustle of outside to a calmer, more focused environment that encourages browsing. Here are decompression zone tips:
- No less than 15 feet.
- Located at the entry with a view of the remaining store.
- Created using contrasting furnishings and colours from outside area to signal new atmosphere.
- Use mannequins, attractive stands and specialised lighting to highlight your newest ranges.
There is an interesting stat in that 98% of people turn right when they first enter a shop? Why not use your decompression zone to create a ‘circulation route’ from the right side that leads around your store for a smoother customer journey? Or, try placing your best products at the right of your decompression zone, if this is the most likely route consumers take.
Utilising the other senses
Ignoring the other senses would be foolish If you want to stay ahead of your competitors. Reportedly, 75% of emotions come from smell and our mood is meant to enhance 40% when we detect pleasant aromas. If you run a fragrance, soap or food retail establishment, are you harnessing the power of smell when it comes to merchandising?
The brain associates certain smells with certain memroies or experiences. If you run a bakery and want to evoke a feeling of warmth, cosiness and home-cooking; ensure that your customers can distinctly smell your products baking from the kitchen by setting up the area to waft aromas into the main shop. Similarly, if your brand specialises in soaps and toiletries, place these strategically around your shop floor to avoid clashing aromas. For example, put all the citrus products together to evoke a sense of energy and rejuvenation and keep these far away from lavender and camomile scents, which are more relaxing.
Mixing up your visual strategy is also important once you have started it. A major part of tactical visual merchandising is moving your presentations as new stock comes in. Don’t let customers get bored of visiting you — keep changing things up and you can make it look like you’re constantly replenishing your stock and bringing in new and wonderful items (even if you’re not).
Seasonal goods and promotions have time limits, and can go outdated very quickly — don’t give people the impression that your brand is behind the times or lazy. Change your visual merchandising displays every month and retain the perception of innovation.
According to predictions, shopping is expected to transform, leaning more towards ‘the experience’ rather than simply buying. With visual merchandising, you can ensure that your shop offers something engaging to keep consumers interested — so why not start planning out your shop’s next visual merchandising campaign today?