Today, competition is soaring and retailers need to remain more relevant in their offerings than ever before. Merchandising plays a huge role in the success of every retailer. Thus, devising effective merchandising strategies is imperative for retailers if they want to provide a one of a kind in-store experience to the customers. The number of stores is declining and in-store retailers are losing ground. Yet, brick-and-mortar retail refrain from being completely obsolete. Out of the many things that can rejuvenate offline retail and bring it back to being a force that it has been in times past, proper merchandising is certainly one of them.
Retailers must understand that there can’t be a single, universal merchandising strategy deployed for multiple categories and objectives. Depending on what the objectives are that the retailer is trying to achieve, the strategy devised should vary for distinct categories and segments. Every strategy should be unique and serve a specific objective. For instance, the strategy to increase the amount of overall sales will be different from the strategy devised to maintain a set of loyal customers. With that in mind, let’s discuss about a few types of smart merchandising strategies that modern-day retailers can look to implement.
Traffic Building Strategy
The primary objective of this strategy is to catch the customer’s undivided attention and lead them to a segment or category within the store. This strategy is ideal for the products that regularly feature in the common household, and therefore needs to be purchased on a frequent basis. It can also be effectively implemented for items that are price sensitive in nature. Retailers should look to identify the areas around the store that has consistently experienced a fair amount of footfall over a period. Tactical placement of the products that yield the maximum amount of loyalty in such areas will expedite the number of customers visiting the store. It is one of the popular merchandising strategies for increasing store traffic and level of sales.
Transaction Building Strategy
Through this strategy, retailers basically try and boost the overall size of the transaction of a category. The customer is encouraged to buy more of the same items or something in direct relevance. They will want to ensure that the customers buy other items which perfectly complements their original purchase. For instance, if a mother of a child walks into a store to buy a set of crayons, she might be interested in other relevant items like a writing slate, a coloring book, water-colors, etc. Customers will end up buying the complementary items often if retailers can tactically place all the relevant items on the shelves, sometimes together. This, backed by lucrative promotions and offers will entice the customers to buy more.
Turf Defending Strategy
The main objective of this strategy is to maintain a market share against one or more competitors. Retailers generally highlight the comparison with the competitors with aggressive pricing and positioning of a category to ensure that it appeals to the customers. Another focus of this strategy is to maintain the already prevailing customer loyalty. Retailers want the loyal customers to keep coming back to the store. What helps retailers maintain a loyal customer base is discount coupons, dynamic pricing, promotions, etc.
These are various merchandising strategies that retailers can implement to serve different purposes and objectives.