Merchandising

Merchandising makes you money. The art of good merchandising is to maximize the impact and effectiveness of all the available shelf space by putting the stock that produces the most profit in the right place. It is also about emphasising special promotions via the use of POS to create an attractive and effective display. Learn some of the tricks of the trade in our section about product displays.

General Merchandising Practices - Top 10 Tips

1. Put your best selling lines at eye level and add extra facings to give you more sales opportunities.

 
2. Situate similar products together.

 
3. Ensure products are presented with the labels face-up at the front of the shelves.

 
4. Ensure you stock rotate i.e. shortest best before date at the front

 
5. All products must be clean, in date and undamaged

 
6. Medicines, if not displayed behind the counter, should always be placed on the top shelf

 
7. Never leave empty spaces on the shelves – double face other lines if need be

 
8. Position own-label alternatives next to the major brands to demonstrate price competitiveness

 
9. Make sure pricing labels are correct – this is a legal requirement

 
10. Make sure the fixtures are always in a clean and safe condition

 

One of the most important ‘tasks’ is to ensure the store looks full up with stock throughout the day. By doing this, you are encouraging consumers to buy more impulse purchases.


Don’t leave the shelf filling to once a day, in the evening, as the store will inevitably look untidy and potentially customers will not bother to enter the store at all. It is recommended that the store is re-stocked at least 3 times a day and usually an hour before the next shift starts their turn. If your main delivery is due, fill as much as you can before it arrives – this way you can see what gaps need filling straight away.

 

Merchandising Tips - News & Magazines

The majority of news and magazine purchases are impulse driven therefore it is imperative that this section is merchandised as well as, if not better than any other area in the store. 

  • Merchandise in category, consider the target consumers (comic’s & kids lower shelves, women’s & general interest – middle, men’s/adult higher shelves
  • Full face all magazines whenever possible, (especially major monthly or women's weekly magazines) full facings sell more than part facings
  • Put damaged copies (or magazines with missing free gifts) on the bottom of the pile – consumers will only buy these if there are no other copies left
  • Daily newspapers are the ‘shortest life product’ in retailing, ensure they have priority

 

Merchandising Tips – Confectionery

The majority of confectionery purchases are impulse driven therefore it is imperative that this section is merchandised as well as, if not better than any other area in the store. Impulse products by their very nature need to be ‘seen’ in order to be purchased!

  • Confectionery should ideally be located in a gondola fixture
  • Control the range of products you stock and maintain continuity of availability for your customers
  • Position the top sellers where they can be seen and shopped easily
  • Locate the fixture in a high traffic flow to take advantage of the ‘impulse’ nature of the product
  • Display mints and chewing gum near to the till point with as wide a range as you can accommodate
  • Don’t place mints next to chocolate in order to avoid contamination
  • Display new lines promptly
  • Allocate more than one facing to volume sellers
  • Create a promotional area near the fixture to take advantage of local and national offers

 

Merchandising Tips – Fresh Meats

At the beginning of each day, the counter should be filled up in date order. All goods must be checked for correct pricing and labels as products without them will not be bought by the consumer.

 

  • Never put raw and cooked meats alongside each other without correct dividers/separators - or raw meat above cooked
  • Rotate products to ensure they are sold whilst in the best condition
  • Feature your promotional lines as prominently as possible
  • Assist with identification by keeping products in commodity groups
  • Check display, temperature and product condition regularly
  • With all fresh foods – if you wouldn’t buy it neither will your customers

 

Merchandising Tips – Fruit & Vegetables

Seasonal variation changes must be considered when displaying fruit and vegetable products  - fruits, vegetables, potatoes and salads will sell better from May to September whilst from October to April fruit and root vegetables are more prolific.

  • Separate vegetables, fruit and salads for identification
  • Do not stack too high or over-fill as this can cause bruising and waste
  • All produce must be displayed with class, country of origin and name of produce
  • Make interesting displays by separating colours i.e. red & green apples 

Merchandising Tips - Beers 

The beer market is consolidating so much so that ten years ago, the top 10 brands were worth a third of the market. It is now closer to two thirds and within the next couple of years it will be worth 80% - make sure you have a core range of the key market-leading beer brands. 

  • Plan for uplifts in sales – Bank Holidays, major sporting events, seasonal holidays, BBQ’s, etc.
  • Make sure leading brands are always kept cold in the chillers. 80% of alcohol purchased from Convenience Stores is consumed within 20 minutes
  • Floor stacks can create additional display areas and improve availability, especially when on promotion – but don’t clutter floor space.
  • Consider driving sales through cross merchandising or link buys.
  • Think about in-store theatre 

Merchandising Tips - Ciders 

Cider is the fast growing sector in the alcohol market who’s resurgence is being driven by the big everyday and premium brands. 

  • Cider has strong regional preferences, make sure you take advantage of the area’s regional tastes
  • Ensure the product is always chilled
  • Focus on the key brands
  • Premium ciders are the major providers of value and cash margin – make sure you have brands like Magners, Bulmers and Stronbow in stock at all times

Merchandising Tips - Wines

For every 27p spent on beers, 36p is now spent on wines. Market growth is being driven by 'New World' wines (Australia, South America, South Africa) which is being supported by major advertising and promotions. 

  • Use your chillers to display a range of white wines for customers who want a table-ready bottle
  • Don’t neglect wines over £5.00 per bottle – customers will trade up for special occasions
  • Feature promotional offers both on the fixture and by having floor displays. Try multi-buy promotions and “wines of the month” deals
  • On the other hand, don’t simply feature cheap wines – this will encourage down trading and they will sell anyway.
     

Merchandising Tips - Spirits 

  • A wall bay location is best suited for this product category
  • Try, if possible to allocate at least one full bay to enable clear identification of this section
  • Block products vertically
  • Locate this section late in the traffic flow close to till point
  • Stock a focused range of Spirits and Liqueurs
  • Position deluxe/exclusive lines on the top shelf/shelves, premium brands at eye level and price fighting/own label on lower shelves. Allow for promotional space at eye level
  • Keep the fixture full and bottles dusted regularly

 

Merchandising Tips – Grocery & Household 

  • Locate the fixture in the main body of the shop, as this area is not generally shopped on impulse
  • Product groups should be placed with regards to “meal occasions’ or by ‘menu’ style grouping; soup, fish with ready meals / dried pasta with cooking sauces, condiments and pickles / carbonates and mixer drinks near alcohol / biscuits with bread & cakes / home laundry with housewares / bags & wraps, infant food with nappies
  • Lines with high distress must be kept in stock at all times