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The Biggest Pros & Cons of Merchandising

Read this article and discover the biggest advantages and disadvantages of merchandising! Find out all information in this article!

First, let’s clear some things – what is merchandising?

Merchandising is the plan and design of products and retail space in order to make the shopping experience more fun and attractive for the customers. Merchandising includes pricing, product display, signage, layout, promotional events, different sales-driving strategies and techniques aimed at improving the profile and the overall profit of your small business. Even though merchandising is highly recommendable, it still brings some possible negatives.

In this article, we are going to present the biggest advantages and disadvantages of merchandising:

–  Bringing Them In Merchandising can maximize the number of consumers who see and enter your retail store. And with increased traffic usually comes increased sales, profit, and success. Merchandising should always start outside where consumers first notice the store and make a decision whether or not they should come to the store. Manicured grounds and bright signage, a clean parking, and organized and well-kept structure are factors that help consumers determine if they should enter your retail store, is that the right choice for them? So what happens once you have convinced your potential consumers to enter the store? That is up to your product line, interior merchandising, and pricing.

–   Maximized Sales Effective merchandising strategy can have a clear and absolutely positive effect on your sales and we all know that this is the end goal of any retail business. Displays, pricing, arrangement and packaging, promotional marketing and sales signs can all boost sales while enhancing the shopping experience for the consumers at the same time. Good merchandising strategy can definitely help you to get more out of your space without any renovations and expansion. Sooner or later your consumers will start to relate your merchandising with your retail store. This will have a huge impact on where they go shopping on a daily basis.

–  Changing Spaces – A properly planned merchandising strategy may demand a rearrangement or shelves, aisles, the general layout of the interior retail space, and display fixtures. The interior spaces should flow simply while directing the customer to the product or important visual displays. A productive retail space brings with it the benefit of more usable space and flexibility. Also, it will help to create an environment that can easily handle more people and makes the buying experience pretty simple for all of us.


–  Once is Not Enough – One of the greatest disadvantages of effective merchandising may be the need to keep at it to satisfy the expectations of the consumers and to keep a stable stream of new clientele coming in. If the bar has already been set, it will allow it to fall and negatively affect your profit and sales, as well as, shrink your consumer base. The downside is that the obligations and the stresses of the small-business owners are many, and usually, most of the owners aren’t interested in taking an additional task of merchandising.

  • Costs – The cost of creating new signage, installing new fixtures, and improving the overall appearance of the retail space can add up real quick. Even though good merchandising can result in a growth in profitability, it will still cost you effort, time, and money, You must be really comfortable with the disadvantage of a specific investment in order to take advantage of the prices later in the process.

Now that you know the pros and cons of merchandising you can decide whether or not it is suitable for you, your business, as well as, your brand! checkout more encyclopedia terms by clicking here!