What Is Visual Merchandising? 8 Tips for Retail Businesses

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8.10.2024

What Is Visual Merchandising? 8 Tips for Retail Businesses

Visual merchandising means creating engaging displays — physically and digitally — to grab customers’ attention and drive sales. It includes strategically placing products, signage, and decor to elevate the customer experience. 

Leveraging visual merchandising creates experiences that resonate with customers. Consider it your silent salesperson — gently nudging clients to browse, engage, and ultimately make a purchase. 

Swedish home goods mega-retailer IKEA is a real-world example of visual merchandising in action. IKEA uses visual merchandising to create an immersive shopping experience by letting customers leisurely walk through curated spaces — from kitchens to bathrooms and bedrooms. Customers see and imagine their homes in these furnished rooms and living areas, which motivates them to purchase. This approach applies to various industries, such as retail, food and beverage, grocery, and automotive.

While large retailers like IKEA can invest heavily in visual merchandising, small businesses can still achieve results, even with a modest budget. Below we offer eight strategies for retail business owners that are easy to implement.

1. Engage your audience with customer-centric displays.

Your displays should speak directly to your target audience. Knowing what your customer values — affordability, luxury, or fun — will help you design engaging and relevant displays. Australian menswear designer, Christian Kimber is a great example of how small retail businesses can focus on their customer needs, “We sell confidence, we don't sell products," says Christian who has purposefully designed the layout of his stores to resemble a dressing room more than a shop. Customers are immediately put at ease and are made to feel comfortable trying on clothing for as long as they need – as if in their own bedroom. 

2. Capture attention with seasonal, holiday, and event displays.

Seasonal sales spikes for small retail businesses are frequently caused by timed product placements and themed in-store decor. Whether it's summer or winter, Mother's Day, or Valentine's Day, coordinating your store's displays to a holiday or event attracts customers and highlights merchandise. Creative, holiday-themed merchandising not only attracts shoppers but also enhances brand appeal.

Visual Merchandising example for seasonal events (christmas display)

3. Appeal to all the senses. 

Visual merchandising extends beyond what meets the eye. Sensory branding — sight, sound, touch, smell, and taste — creates a deeper, more engaging retail experience. For example, using scents that stir up memories and emotions, soothing music to relax customers, and lighting and colour schemes to direct attention to new arrivals and shapes to form familiarity with the store. These sensory triggers enhance the customer’s emotional connection to your brand and boost sales.

4. Ensure safety and functionality.

Displays should be safe, convey messaging, and be visually appealing. For example, a shoe store needs strong shelves that are both easy to reach and ensure the product won't fall off. Discount signage needs to be placed in prominent places that draw attention.

5. Stack it high.

Well-stocked shelves not only create an inviting shopping atmosphere but also give the impression that the business is thriving, resulting in a boost of customer confidence and encouraging sales. Walking into a store with half-empty shelves, on the other hand, can signal disorganisation or lack of inventory. However, this doesn’t mean overstocking is the solution. Balancing full shelves with strategically placed discounts or offers can attract customers while reinforcing a strong, positive brand image. It also helps when products are at eye level or slightly above, making it easier for customers to interact with the items and increasing the likelihood of a sale. 

6. Stay up-to-date with trends.

Using interactive displays and keeping up with emerging trends is a great way to increase engagement. A boutique store, for instance, might offer monochromatic displays to mirror current design trends or use touchscreens to present online collections.

7. Test and refine your merchandising approach.

Testing various arrangements, lighting configurations, and product placements frequently is necessary for successful visual merchandising. Finding what works best for your particular audience and area is aided by an ongoing process.

8. Maintain brand consistency. 

Everything in your store should have a unified concept that represents your brand, from decor to documents, everything should maintain a consistent theme. This extends to even the smallest details, such as napkins, signage, and even the EFTPOS machine: anything that can leave a lasting impression on your customers.

Take visual merchandising to the checkout with Zeller

Every interaction with your customer — whether digital or in person — is an opportunity to establish a brand presence, and payments are no exception. With Zeller, you can enhance visual merchandising best practices by ensuring that your brand identity is reflected across all interactions, from payment processing to receipts, and invoices. 

Taking your visual merchandising guidelines to the checkout, Zeller Terminal enables you to add your brand with customisable screensavers and choose the perfect hardware colour to complement your retail store’s design and aesthetic. Take your visual merchandising best practices even further and discover how to boost your brand presence with Zeller in this article here

Visual Merchandising with Zeller Terminal 2 at a bakery store

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