Merchandising in a grocery store - what does proper merchandise display look like and how does it affect sales?

Merchandising, or in other words the display of goods, has already entered the vocabulary of most entrepreneurs engaged in trade. Of particular importance in terms of how to arrange goods on the shelves in the store is, of course, the knowledge, professionalism and experience of those responsible for this. In this case, it is worth investing in the services of agencies, or simply merchandisers, who can boast of many effective implementations when it comes to merchandising in the store. Merchandise display, by definition, is the skillful arrangement of products according to rules that will make the customer feel satisfied with his purchases. At the same time, it is a subtle, indirect influence on what kind of purchase decision the customer makes. Although the application of the principles of good merchandise display is important in many branches of commerce, it seems that it should be of greatest importance in the context of appropriate merchandising in FMCG, i.e. outlets offering so-called fast-moving products. These are the kind of goods that are in high demand. They cost relatively little and disappear from the shelves fairly quickly. This is often the case with food items. The answer to the question of what is merchandising is often found in the value of the average shopping cart already after applying appropriate strategies

Merchandising for FMCG leaders

FMCG, or fast-moving consumer goods, are the products that are in greatest demand in stores. We are talking about both large-format stores, where the range of FMCG products is wide, and smaller specialty stores, such as grocery stores. In each case display of goods in the store is important for the entire sales process. FMCG Merchandising, when it comes to industry leaders, is characterized by the frequency of replenishment of goods. Of exceptional importance here is what is colloquially known as "feathering," i.e., the merchandiser's attention to the outward appearance of the shelf. Modern merchandising display at major manufacturers, is all about keeping the shelf in order. Taking into account the characteristics of FMCG, it should be noted that necessities disappear from the shelves in no time. An effect of running out of goods especially at the front of the shelf is created. This is well illustrated by the example of grocery stores and items with a short shelf life. For example, the yogurt shelf very often gets empty and needs frequent replenishment. Proper display of goods in a grocery store prevents shortages and maintains the visual effect of abundance on the shelves. FMCG leaders make sure that their products are always displayed according to basic principles ofmerchandiselining. Large companies have very precise sales plans and merchandising, so proper merchandise display allows them to meet them and even improve them often.

What does it mean to display goods?

However, many entrepreneurs running especially smaller businesses often wonder what is actually the display of goods in a store? How to properly position merchandise in a grocery store? How to display a given merchandise? With answers often come professional agencies that simply implement strategies based on their experience and knowledge. Merchandising in a store should be done in a multifaceted way. Merchandising, even by its definition, involves many of the consumer's senses. In addition to the obvious, such as making sure there is no shortage of merchandise on the shelf, merchandiser organizes the shelf, but also, and perhaps most importantly, introduces the proper layout or planogram. FMCG manufacturers precisely define the appearance of the display of goods on the shelves. It is on the basis of such a document that merchandisers work, and accounting for their work is often based on the execution of the planogram in a model way, developed by analysts.

How to arrange goods in a grocery store? Principles of merchandise display

The display of goods in a grocery store has strict rules that the merchandiser must follow. One of the most important criteria here is the issue of products with a short shelf life. Grocery store merchandising is often such products. In second place when it comes to merchandising in a grocery store many experts point to the importance of grading merchandise in terms of weight for the manufacturer.  Merchandise is often to be positioned so that premium products are placed at the very top. Roughly at the customer's eye level, such products are placed that are most likely to be purchased. On a lower shelf, it is advisable to place products that children may pay attention to, or will be larger, family-sized packages. The reasons are simple. The customer should not be forced to make an effort.  The arrangement ofgoods in the store should be such that everything that is most important is always at hand, or at least within sight. These rules apply especially to FMCG products, which are characterized by very high turnover - they disappear quickly from the shelves and also need to be replenished frequently. Also of great importance is the proper positioning of shelves in a grocery store. The idea is to guide the customer from the moment he crosses the threshold of the store (and often even before - the store window) to the moment he enters the checkout area. And the point is to make this path as long as possible, and the arrangement of goods as logical as possible. If you offer, for example, fresh bread, it is worthwhile that the next displays of goods in the store dedicated to, for example, jams, bread creams. Somewhere nearby or further down the aisle should be a refrigerated counter with butter. Maintained rules for stacking goods on shelves will help lengthen the customer's journey to the checkout, and thus increase the amount of the average shopping cart.

Merchandising in a small grocery store

The type of merchandising in a grocery store is worth dividing by the size of the store area. Of course, the larger it is, the more merchandising instruments to use. However, owners of small grocery stores or even smaller islands in shopping malls are not in a completely lost position.  In the latter case, it is worth ensuring that the display of goods on the island is correct across the front wall and around the island. If it is a food island, on the counter - necessarily something to try. This is a nice gesture that allows the consumer to consolidate a positive feeling. The very arrangement of goods on the shelves according to the classic rule of three. So, three products arranged from the smallest to the largest, from the narrowest to the widest, and finally from the cheapest to the most expensive. Here there is no time for half-measures, the customer must be grabbed right away and not let go until the transaction is finalized. The  formula ofdisplaying goods in front of the store also works.

When it comes to a small grocery store, here, too, you need to apply a series of iron merchandising principles from the very beginning. First of all, take care of the goods on the shelves, but also do not overstock the store. Pallets of yogurt that do not fit in the store will reduce the already small area of the store - the customer will be forced to squeeze through, and this is never beneficial. The display of goods in a store with a smaller area requires order, replenishment, but also logical placement. The idea is that the customer should have everything at hand, within sight, but also that he should still be able to buy things he might have forgotten about at the end of the road. Hence, at the checkout, racks of candy bars, hangers of chewing gum, and next to batteries and lighters. The arrangement of goods in a grocery store should be very thoughtful. The customer's path through the store must be logically planned. There is not much to walk through, and those few meters can make a difference in the value of the shopping cart. The same is true of merchandising for display of goods in a butcher store. These are usually small points, highly specialized with a limited assortment.But when running such a point, it may be worth thinking about partnering with a bakery, for example, which will also offer fresh bread. A gentle expansion of the assortment can positively affect the value of the average shopping cart. For example, merchandising principles in a pharmacy are similar.

Merchandising in a big-box store

Merchandising in Polish large-formatstores is a wide-ranging issue. A large area simply provides more opportunities to influence the customer's purchasing decision. There are more merchandising tools to use, but the placement of products must also be more precisely planned. Proper display of merchandise starts from the moment the customer crosses the threshold of the store, but it is important to carefully plan the customer's path and stops on it. A customer entering the store should immediately be stopped by a small island with promotional products, or perhaps a tasting. Then, as he walks through the subsequent aisles to his destination, he should pass advertising materials POS, which will perhaps prompt him to throw something else in his shopping cart. The display of products already on the shelf itself, obviously, must be neat and free of shortages. Merchandise should be "feathered," that is, moved to the front of the shelf. This gives the impression of abundance. On top of that, the rule is to arrange many of the same goods in a row. Among the merchandising basics that must be maintained is also the placement of premium products on the higher shelves, and the so-called "top" products, i.e. those most frequently purchased, in the line of sight. Below the line of sight, but within arm's reach, items are placed that children may be interested in, or those in larger, family-sized packages, making it easier to put in the shopping cart. Merchandising in hypermarkets certainly requires the involvement of a professional agency. Ways to  arrange merchandisein a store are so many that serial employees, as a rule, are not able to fulfill all product merchandising objectives.