The basic premise of merchandising is to create interest in products and entice customers to purchase. Effective merchandising uses product design, selection and pricing to create demand that results in increased sales.
The layout of your store and how the product selection is organized is the foundation of a merchandising plan. The goal of an effective floor plan is to encourage customers to walk through the whole store. In grocery stores, the most common items like eggs and milk are positioned at the point furthest from the door. The majority of people who walk in needing milk or eggs will have to walk by all the other aisles and will inevitably buy more items than just the milk and eggs they initially intended to purchase. This is an example of a merchandising tactic used to increase the average units per transaction and overall sales.
End Cap Displays
Creating an end cap display can increase the sales of the highlighted product up to 30%, even if you don’t change the price. Product that is clearly visible and by itself on an end of an aisle automatically catches the customer’s attention. End cap displays can be created for products that are over stocked, seasonally appropriate or create to a “story” with the goal of selling items that are cross functional. One basic rule is make sure you have enough inventory to keep the display well stocked. End cap displays are prime real estate in your store. Planning a monthly rotation of the endcaps introduces different products and keeps your store visually interesting to your customers.
Brand Consistency and Awareness: Never merchandise inventory on a competitor’s unit:

Maximize inventory on your displays- Empty Displays are a waste of space…
