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12 Helpful Features You Should Look for in a Retail POS System

12 Helpful Features You Should Look for in a Retail POS System

Owning the right POS system is essential to the success of any retail business. Today, a retail POS system can do much more than just handle payments and record sales – innovative POS technology now functions as a complete retail management system. 

In other words, a feature-rich retail POS system acts as a tool that enables you to both manage and grow your store.

But with so many different retail POS software in the market, how do you find the right one for your retail business?

Whether you’re looking for your first ever POS software or looking to upgrade to a new one, finding the right solution for your retail store doesn’t need to be difficult. 

In this article, we’ve broken down the most important features to consider when choosing a retail POS system. 

12 Key Features to look for in a Retail POS System

 

Point of Sale Features

Let’s begin by discussing all of the features needed in the sales portion of your retail POS. This covers all of the functionalities and features needed for a fast and easy checkout experience. 

grocery store checkout

1) Easy to Navigate Salesscreen: In order to ensure a fast checkout experience, it’s important to look for a POS system that is user friendly and designed for minimum clicksCashiers shouldn’t have to leave the salesscreen in order to complete a transaction.

2) Fast Barcode Scanning: Your retail POS system should be designed for quick scanning speed while giving you the ability to quickly recall your last search. It’s also important that your POS software can handle multiple barcodes per SKU (an internal code, a shortcode, a vendor code(s), and a manufacturer code). 

3) Advanced Inventory Search: Besides handling a high volume of inventory and transactions (read inventory features below), your retail POS software needs to have smart search functions. This will allow you and your employees to search for products by keyword, description, barcode or tag in case labels fall off or are not scannable. 

4) Inventory Management: Inventory is the most important asset you have as a retailer which is why it is necessary to track and keep an accurate count of all of your merchandise.

retail employee doing inventory check

The inventory management component of your retail POS will help you replace tedious methods of inventory control resulting in time, money, and effort saved.

5) Mobile AccessibilityMore and more retailers are recognizing the benefits of cloud technology and consequently, cloud POS adoption is growing at a significant rate. Cloud POS software stores data in the cloud giving you the benefits of remote accessibility, cost-savings, and real-time data accuracy. Click here to learn more about the benefits of cloud POS technology.

You’ll also want to make sure that your retail POS is completely mobile-friendly and can be run on any device. This will enable you to ring in sales anywhere in your store (e.g. on an tablet or mobile phone) which means a faster checkout experience for your shoppers.

6) Cross-Platform Access: Having a POS software that is compatible on any device is important for emergency instances when your store’s internet connection goes down. In the past, it was assumed that offline capability is the best alternative when internet access is down. But the fact is, credit and debit cards are the most popular payment methods for shoppers today, and PINpads won’t work without an internet connection.

Some systems offer the ability to store credit card details in the device until internet is back up but not only is it riskier to shopper payment details, you’re taking the chance of the stored payments not getting approved.

In today’s market, offline capability is not as useful as a smart POS platform that can be logged in from any device. When internet goes down, it’s as simple as securely logging in with a mobile device with data to continue ringing in sales.

7) User Access Rights: It is likely that you will have multiple people working in your business. Which means that your retail POS will need to be able to identify different users and give them tailored access to the system based on their role. User access rights also enable store owners to limit permissions on certain features in your POS (for ex: reports, etc.).

8) Scalability: Look for a POS software that will grow with you as your retail operations scale. Your retail POS should have the following features: the ability to handle high transaction and inventory volume, international tax settings, multi-currency handling, unlimited stores, selling zones and multiple stock allocations. 

These features will allow you to grow and scale with your POS software. Some cloud POS software have limits on the number of users and stores – meaning if you eventually outgrow your existing system, you will need to invest a considerable amount into upgrading or switching to another POS altogether

9) Customer Relationship Management (CRM)

customer relationship management

The CRM component of your retail POS software stores shopper information and allows you to better manage your customer base. It can generate huge benefits for your store – including better customer relationships, sales reports that allow you to make better business decisions and more efficient operations. These benefits ultimately lead to more sales.

10) Bulk Item Import: For fast POS onboarding, you will want to select a retail POS that can import all of your inventory and customer details. Otherwise you will be stuck manually uploading your inventory – which is an extremely tedious and time consuming task.

11) Built-In Training Tools: Smart POS systems today will have self-service functions such as built-in chat support, online knowledge portals and even step-by-step guided products tours. Not only does this minimize your onboarding costs, it ensure that staff can quickly learn how to use the system at their own convenience.

12) Marketing Integrations: Traditional point-of-sale systems are essential to retail operations management but modern cloud POS systems are data-driven which means you can now use your retail store data to drive digital marketing. A POS that has built-in marketing tools will allow you to streamline your marketing efforts so that you can sell more. For example, a POS that integrates to Google will help your retail business appear higher up in search results – resulting in more local foot traffic and sales.


TAKU Retail POS is designed for high traffic retailers looking to increase foot traffic to their physical stores. Join our beta waitlist here

#POSfeatures #retailPOS #retailpointofsale 

Inventory Management 101: What are SKUs?

Inventory Management 101: What are SKUs?

A SKU (pronounced “skew”) stands for Stock Keeping Unit and is used by retailers to both identify inventory and keep track of inventory movement. 

It is basically a unique combination of numbers and letters assigned to each product in a retail store. As a retail owner, SKUs give all of your products a single type of code to help you keep track of certain details for a specific product including price, product information (colour, size, features, etc.), quantity, and manufacturer. SKUs are often associated with vendors or supplier barcodes but can they can also be converted into scannable barcodes and printed on to product labels.

A retail POS system is the software that holds all of this inventory information so that you can track what you’re buying, how much stock you’re carrying and whether stock movement matches what you’ve sold. Whenever you’re looking for a new retail POS system make sure to check if the software will allow you to use your existing SKUs and also generate consecutive SKUs for new products. This is particularly important if you integrate to other non-POS systems (e.g. accounting systems) based on your SKU names. 

SKUs vs GTINs

SKUs should not be mistaken for Global Trade Item Numbers (GTINs) or Universal Product Codes (or UPCs). SKUs are internal codes used for products that are unique to a retail business. On the other hand, GTINs or UPCs are the same for a product – no matter who/what store sells it.

product label

How are SKUs Made? 

Each retail store has a unique and specific process in place for choosing SKUs. This method is usually easy to understand and follow for retail staff. 

POS systems can help you create SKU codes based on a format that works for your business. For example, your SKU code can have a specific prefix or suffix together with a number that increases consecutively. For example, a SKU for your business might be FD-2340-GR. Others use shortcodes within their SKUs as an easy hint to staff so they don’t need to memorize numbers.

retail POS system

How are SKUs used?

Inventory management: Inventory/stock-takes should be done at regular intervals in retail; both for tax purposes and to ensure accurate inventory levels. 

When each product is assigned a unique SKU, inventory availability is easier to determine throughout the year. And when it comes time for a stock-take, SKUs make it easier to reconcile stock levels – so that actual inventory levels match inventory counts in your retail POS or inventory management system. 

inventory management

Stock replenishment: Making use of SKUs can help store owners identify reorder points and a minimum threshold – so when inventory hits a certain level, they are made aware that a new purchase order needs to be placed. 

These internal codes also help you identify the products that move faster. Meaning you only have to re-order when you really need to – resulting in reduced inventory holding costs. 

skus make for easier stock replenishment

Better customer experience: Have you ever walked into a store and seen a pair of shoes or a t-shirt that you liked – but it turned out that you needed a different size? In this case, retail employees usually scan the item’s barcode or label to see if they have your size in stock, either in the back stockroom or at a different location. 

This instance explains how SKUs are used within a retail system to improve customer experience. When products share a traceable type of code, you and your staff can more easily identify stock levels quickly so that more time is available to actually assist customers.

identify stock levels quickly

Identify profitable stock: SKUs are generally the easiest way for retailers to filter for specific and detailed product reporting – e.g. identifying best sellers and underperforming products by their SKU. When you combine this with merchandising and product categories or tags, business owners can more easily see the effectiveness of their store’s product mix. 

identify best sellers and underperformers

Identify inventory shrinkage: Inventory shrinkage in retail can be defined as the discrepancy that exists between the inventory quantity in a retailer’s POS system and the actual inventory in that store. In other words, it consists of the stock/product/inventory that goes missing due to human error, theft, damage, miscounting etc. 

Inventory management is key to combating shrinkage in retail. As stated in an inventory shrinkage article published by Forbes, “Without an active inventory process, you do not realize your losses until it is too late.” 

And properly designed and implemented SKUs are central to any good inventory management system. They are key to modern digital retail since they are necessary to share and track inventory information between different locations, systems, and sales channels.

SKUs help reduce inventory shrinkage

Did you find this article helpful?

We will be posting more inventory management tips in the upcoming weeks.

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#SKUdefination #whatareSKUS #inventorymanagement #retailPOS #cloudPOS #pointofsale #builtforretail

What is Local SEO and how can it Benefit your Retail Store?

What is Local SEO and how can it Benefit your Retail Store?

Reaching a local audience is critical to the success of any brick-and-mortar retailer. This is why local search engine optimization (or local SEO) is so important. 

Local SEO helps store owners promote their retail business to local shoppers.

In this article, we’ll go into detail about what local SEO is and how it can benefit your retail business – from increasing your online visibility, driving foot traffic, and ultimately growing your revenue. 

What is Local SEO?

Local SEO stands for local search engine optimization. It is the process of “optimizing” your online presence so that your store can appear as high as possible in search results. By focusing on local SEO, you can attract more business from relevant local searches.

Essentially, the purpose of a local SEO strategy is to ensure that users can find you – both online and offline. 

The Importance of Local Search

shop local flag

According to Google: 

  • 4 in 5 shoppers use a search engine to find local information.

  • 50% of shoppers who conducted a local search on their smartphone, visited a store within the same day.

  • And 34% of users who searched on a computer/tablet did the same. 

Having said that, the amount of users that are conducting local searches is also growing at a significant rate. 

Over the past several years, there has been over a 500% growth rate in “near me” mobile searches that contain the phrases “can I buy” or “to buy”. 

For shoppers, search is no longer about finding a specific business. It is about finding a specific product in a specific place and in a specific period of time. 

The challenge for store owners then becomes giving target shoppers the answers they are looking for at the exact moment that they are searching. And by doing so, capturing both their interest and the sale. 

This is where local SEO comes in. 

The Benefits of Local SEO 

local store

We know that the modern shopper prefers to conduct product research online before making purchases in store. So it makes sense that retail businesses with the greatest local online presence (or a strong local SEO strategy) will capture the majority of sales in a certain area. 

Listed below are the key benefits of a local SEO strategy. 

Local SEO Strategies

seo strategy

As a local store owner, you may feel that investing time into your Google search ranking is useless as it means competing with larger retailers like Amazon and Walmart. But this isn’t the case for local search.

Google recognizes the benefits of local business and it knows that shoppers do too. So in order to determine how your business ranks in local search and if it is geographically relevant, Google takes a certain set of factors into consideration. 

With that being said, there are key elements to ranking well in local search – which can be broken down into the following three components: 

  1. Optimizing your Google My Business listing: Google My Business is a free online listing service offered by Google. It is a powerful yet easy tool that retailers can leverage to drive local foot traffic. To learn more about Google My Business, click here
  2. Optimizing your store’s website for on-site SEO: Increasing your on-site SEO involves updating your website to optimize for several ranking factors. This includes improving internal linking structure, building local content, optimizing for keywords (website URL, meta descriptions, titles, headers etc.), and ensuring that your website is mobile-friendly. 
  3. Optimizing for off-site SEO: This involves everything you should be doing across the web (other than your own website). Key strategies to focus on include NAP consistency, inbound links, and local directory listings. 

If you would like help implementing a local SEO strategy for your retail business, hiring a local SEO consultant is a good place to start. Click here for an informative and thorough guide on how to find the best local SEO company for your retail store. 


Keep an eye out on our blog for more SEO tips. 

In the meantime, if you would like to learn more about how you can increase foot traffic and store sales, click here

 
What is a Retail Point of Sale System and why your Store Needs One

What is a Retail Point of Sale System and why your Store Needs One

A point of sale system is demonstrably the most important tool you can have when running a retail business. 

In fact, retail stores that invest in a strong POS system are quick to see a huge return on investment. 

A retail POS can help you save time and money by streamlining repetitive tasks, maintaining business records, and reducing human error. Even better, it can even help grow your retail business with useful data and marketing integrations.

Keep reading to find out more about how your retail business can benefit from a POS system.

What is a Retail POS?

grocery store checkout

Traditionally POS stands for “point of sale” – which refers to the place where a customer transaction occurs. Or in simpler terms, the point at which a customer hands over money in exchange for a product that they’ve purchased. 

For many retailers, this usually means the area surrounding the checkout line. For retailers who adopt cloud POS or mobile POS solutions, their whole store essentially becomes a point of sale. 

What is a Retail POS System?

pos system

To better manage in-store checkout, retail POS systems were created. The original POS systems were a combination of hardware and software that retailers used to manage their sales operations. Because POS systems are the only source of all detailed store sales, they eventually expanded to include everything from tracking customer history and taxes reports to advanced marketing and inventory management. 

Retail POS Software

Today, there are 2 main types of retail POS systems in the market: on-premise software and cloud-based subscriptions.

On-premise POS software: This type of software is installed on specific devices and usually does not rely on the Internet because the data is stored on the same devices. Because the database is stored “locally” in a specific server computer in your store, you can only access the data when you are in the store.

Cloud-based POS software: Cloud software stores data in an off-site cloud server (often hosted by a major cloud hosting service such as Google Cloud or Microsoft Azure) and is accessed via the Internet. You can compare it to writing a report on Google Docs. As long as you have an Internet connection, you can access your report from anywhere. While there may be some limitations without Internet access with cloud systems, there are major gains in remote accessibility, cost-savings and real-time data accuracy. Click here for more information on the benefits of cloud-based retail POS software

There is also a 3rd type of “hybrid” retail POS system which combines a hardwired local connection with access to data in the cloud. While this type of solution reduces the reliance on Internet, it is often a more complex system to maintain and more commonly used by larger operations. At the same time, because it is designed to allow for longer offline use, there is greater potential for issues with data quality during “synchronization” of online and offline data.

Expert Tip! It’s also important to note that offline usage and “data integrity” actually work against each other. While it is key for operations to have usable salesscreen functions (or alternative ways of processing sales) when the internet or network is down, the quality of the pooled data is lower and less accurate the more often the stations in a POS are “offline.” So if getting accurate, accessible business data from anywhere is a major priority, it’s important to consider a system which prioritizes real-time data accuracy with fast and reliable data sharing and considers offline usage for emergency scenarios only. Systems that prioritize offline capabilities over the data sharing functionality will be designed for infrequent synchronization. While this may not be a concern for certain types of businesses, the reality is that omnichannel retailers that need real-time stock quantity and even restaurants that take online orders need accurate POS data to make better operational decisions. After all, customers now expect real-time information when they intend to shop or order something. It’s another reason why smart POS is now able to automatically help merchants update correct store information or product stock levels in real-time.

cloud POS

Retail POS Hardware

POS hardware includes all of the physical components of your POS system. It is usually comprised of the following items:

1. POS terminal: This is the hardware or device (computer, laptop, desktop etc.) that the POS software runs on.

Traditional, on-premise systems have limitations when it comes to hardware. This is because most on-premise solutions can only operate on certain devices and operating systems (such as Windows or Mac). 

To use on-premise POS software, a license must be installed on each device that a merchant wishes to operate on. At the same time, licenses are often tied to the hardware they are installed on and can be difficult or costly to transfer to other devices.  

For newer, cloud-based POS software, merchants can use any device with Internet connectivity to access their data – laptops, tablets, desktops and even mobile phones. Cloud POS software does not require merchants to pay per device, rather merchants often pay per active station (or users logged in at the same time). Transferable access offers multi-channel merchants a lot more flexibility when managing store operations.  

2. Cash Drawer: A cash drawer is an important yet simple part of a retail POS system. This piece of hardware provides both security and organization to retailers. It is where cash, coins, checks and credit card receipts are stored. 

The receipt printer will send signals to the cash drawer, prompting it to open when necessary.

cash drawer

3. Barcode Scanner: Barcode scanners are an important part of most retail stores. Compared to restaurants, retailers carry a lot more inventory and need to use barcode scanners to make checkout an easier and faster process for both store employees and shoppers. Scanners use lasers to read barcode numbers unique to each SKU and enter these numbers immediately in the POS software.

While most retail POS systems should be designed specifically for barcode scanners, it is important for there to be other search methods should barcode tags get damaged or lost. Without scanners, cashiers should be able to quickly search by product codes or keyword for each item in the store.

Expert Tip! Unless a retail store has a very low number of inventory items (e.g. coffee shop), the default salesscreen mode should be designed for barcode scanners. The picture gallery touchscreen mode commonly found in tablet-based POS was traditionally designed for restaurants where the number of inventory items is very low and is generally not efficient in retail stores with more than 500 unique SKUs. While some POS providers will serve both restaurants and retailers, if the default salesscreen is designed for touchscreen picture gallery, most likely the company that developed the original software started with a restaurant POS and later retrofit it for retail.

barcode scanner

4. Receipt Printer: Once a customer pays for the items that they have purchased, cashiers will usually hand them a receipt to confirm payment. While email receipts are increasingly popular, the majority of receipts are still printed based on the data received from the POS software. 

receipts

5. Credit Card Terminal: This is the hardware that store staff use to accept debit and credit card payments. Increasingly, shoppers prefer and make the majority of their purchases with credit and debit cards. 

There are three ways that credit card terminals can accept credit or debit payments: 

1) Using chip & PIN cards: Where shoppers insert chip & PIN cards to make a purchase. This type of payment is EMV-compliant and the most secure of the 3 types.

2) Swiping card magstripes: Where shoppers swipe their cards in order to make a payment. This type of payment is not EMV compliant and opens the merchant up to chargebacks on all payments processed.

3) Near-field-communication (NFC): Where shoppers use their devices (Apple or Google Pay) or simply tap their cards to pay. This type of payment is the fastest of the 3. While tap is not as risky as magstripes (it is generally only allowed for individual payments of up to $100), in a busy store, this can be costly as the merchant is still fully liable for any chargebacks.

credit card terminal

3 Reasons Why Your Retail Store Needs a POS System

1) Faster Checkout 

checkout line

Slower checkout speed often leads to abandonment. In fact, long lines and poor checkout experience are major contributors to low shopper dissatisfaction.

Adopting a POS software that is designed for checkout speed will help speed up store operations and improve shopper satisfaction. This is especially important for busy multi-lane stores as they often deal with long line-ups.

Faster checkout is also key to increasing revenue during high season or rush periods. The longer your customers wait in line, the slower your turnover and lower your sales.

Here are some checkout features to look out for when choosing a retail POS software designed for fast checkout:

Easy navigation: Look for a software that is designed for checkout speed and minimum clicks. You shouldn’t have to leave your salescreen in order to complete a transaction.

Fast scanning speed: Retail POS software should be designed for quick barcode scanning with easy recall of your last search. Make sure that the system you’re looking at is able to handle multiple barcodes per SKU as every retail product commonly has an internal code, a shortcode, a vendor code, a manufacturer code and possibly several carton codes.

Advanced inventory search: Besides barcode scanning speed, a retail POS software designed to handle high volume inventory or a large number of transactions quickly needs to be able to have smart search functions including keyword search by description, barcode or tag should labels not be scannable, etc.

If you want more information about adopting a line busting retail POS software that is designed for checkout speed, click here

2) Increased Mobility 

POS mobility

Retail POS systems – cloud POS software in particular, provide retailers with more flexibility and mobility. As data is stored in the cloud, store owners can access their business information around the clock from anywhere – even if they are not physically in the store. They can view inventory levels, tax reports and sales data right from the comfort of home or even on vacation. Well-designed cloud POS software can also function on any device – from tablets, laptops to smartphones. 

3) The Ability to Use the POS Data for Retail Marketing 

POS data

POS data is critical to the success of any business. This is because data provides retailers with the tools to effectively manage inventory, sales, and finances.

Besides standard sales and inventory reports, modern cloud-based retail POS systems help store owners sell more using their own POS data. Because cloud POS are particularly good at integrating with other cloud solutions, real-time store data can be shared other solutions such as e-commerce platforms, shipping services or listings such as Google My Business, which help improve SEO and drive more local foot traffic to stores.


We will be posting more POS tips in the upcoming weeks. 

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#pointofsale #posdefination #pointofsaledefination #benefitsofpos #retail #retailstore #builtforretail #cloudpos #retailpos

SEO for Retailers: How Search Engine Optimization Can Help You Sell More

SEO for Retailers: How Search Engine Optimization Can Help You Sell More

There are over 3.5 billion searches on Google per day.

Which means that being online is now essential for retail businesses (both small and large) that are looking to grow sales and foot traffic. 

In fact, the majority of shoppers are now conducting product research online before making purchases in store. Specifically, shoppers are using Google to search for products, read online reviews, and find local businesses. 

This is where SEO comes in. Good SEO helps shoppers find your retail store – both online and offline.

What is SEO? 

SEO stands for search engine optimization. It is the process and a set of best practices you follow to rank as high as possible in search results. 

How Does SEO Work?

SEO factors

There are over 1.5 billion websites on the internet.

Search engines like Google need to be able to pull the most relevant content to display to users. In order to do so, these search engines use mathematical formulas (also called algorithms) to figure out which websites should be displayed first. 

Google’s algorithm determines how valuable content or websites are based on a number of factors. These factors include mobile responsiveness, site speed, keyword usage, link-building, content quality etc. 

The goal of SEO is to send signals to Google’s algorithm that show your content is both relevant and valuable. Or in other words, that it is worth ranking high in search results. Obviously, the higher your content ranks, the more likely you are to generate traffic to your website and physical store. 

3 Benefits of SEO for Retail Stores 

1) Builds Credibility

credibility definition

Paid online advertising and social media are great platforms to increase traffic to websites. But the majority of online traffic is driven by search engines

Organic (unpaid) search results also appear more credible to shoppers. Think about it this way – the main goal of Google and other search engines is to provide users with high quality and credible content. Because of this, search engine users now associate higher rankings with more valuable content. 

So by implementing SEO in your marketing strategy, your site will rank higher. Having a higher ranking website will then build credibility and authority amongst your target shoppers. Ultimately, this will generate more sales for your retail store.

2) Attract Local Shoppers 

shop local

There are billions of local searches made each month. According to Google, 80% of people now use a search engine to find local information. 

This is why a local SEO strategy is more important than ever for brick and mortar businesses. A strong local SEO strategy comes with many benefits including: 

  • Greater local visibility 

  • More relevant traffic 

  • Increased visibility on Google Maps 

  • A good local reputation 

As you can see, ranking in local search results is a big deal! Retail stores with a strong local online presence are more likely to see an increase in foot traffic and sales. 

3) Low Marketing Costs 

calculating marketing costs

Traditional marketing methods (billboards, TV advertisements.) make it difficult for small brick and mortar businesses to compete with larger retailers. Although an SEO strategy may take time and effort, it allows smaller retailers to compete with these bigger names for a much lower cost. 

Organic search has also proven to be more effective than paid search advertising. Not only does it generate more sales for your business – but it does so at a lower cost than PPC or traditional marketing campaigns. Put simply, an SEO strategy will generate a higher return on investment – making it worth the time and effort. 

Another advantage is that SEO tactics attract shoppers that are actively searching for your products or business. This is why it results in more relevant and qualified shoppers – or in other words, better business. 

SEO Boosts Store Traffic and Sales 

By now, you should understand why an SEO strategy is well worth the time and effort. Appearing in top search results will get your retail business in front of a relevant local audience, ultimately leading to more traffic and sales.


We hope you found this article helpful! 

We will be posting more SEO tips in the upcoming weeks. Subscribe to our blog to stay updated on the latest retail news, trends, and tips! 

#seo #localseo #retail #benefitsofseo #seodefinition

Retail Merchandising 101: What is Merchandising?

Retail Merchandising 101: What is Merchandising?

What is Retail Merchandise?

Retail merchandise includes all of the products and items that are available for purchase at your store (shoes, pet food, jewellery etc.). It is also commonly referred to as inventory or stock. 

What is Retail Merchandising?

wall display

Put simply, merchandising is how your products or inventory are displayed in your store.

But there is more to merchandising than just attractive displays.

It involves everything you do to sell your merchandise once a shopper steps foot inside your retail store – from selecting the right products to pricing and promoting them in ways that will attract shoppers

Why is it Important?

When shoppers step foot inside your store, the goal is to get them to make a purchase – obviously. And merchandising is a tool that gets shoppers closer to that purchasing decision. 

Strong merchandising practices can be the difference between a highly profitable store and a struggling one. 

The benefits of an effective merchandising strategy include: ​

  • Increased Sales

  • Cost Control

  • Maximized Retail Space 

  • Satisfied and Loyal Shoppers 

  • Increased Employee Productivity

Merchandising Strategies

grocery display

There are many ways to attract shopper attention and encourage purchases in store. Some popular strategies include: 

  • Product samples and demonstrations 

  • Cross-merchandising (placing similar items together) 

  • Store signage (shelf signage, promotional signage) 

  • Product displays (end-caps, dump bins, checkout counters etc.) 

  • Effective store design (the layout of the sales floor) 

  • Promotional merchandising (pricing, discounts, special offers  etc.)

  • Stocked shelves (having the right products at the right time) 

Tips for Creating Effective Displays

Merchandising is an art and a science – meaning that it has both visual and strategic aspects to it.

The visual aspect has to do with how well your displays grab the attention of shoppers. It’s about making sure product displays appeal to the human eye. 

While the strategic aspect has to with product and display arrangement. In other words, what products should be placed in each display and where. 

Here are some tips for creating effective displays: 

1) Display merchandise vertically rather than horizontally 

It is more effective to display items vertically rather than horizontally. This means displaying similar products up and down your shelves rather than extending them across displays. By doing so, shoppers can find what they need by standing in one spot

shopper in-store

2) Keep merchandise at eye-level 

As the saying goes, “eye level is buy level”. This is one of the most popular concepts when it comes to retail merchandising. Eye-level is the best-selling height on every display – as it is the easiest height for shoppers to browse. 

merchandising display

3) Use signage

There are many different types of signage when it comes to retail merchandising  – outdoor signage, informational signage, directional (location) signage, and promotional signage.

Effective signage plays an important role in operating a successful retail business. It helps drive foot traffic while making it easier for shoppers to navigate your store. Without it, a poor shopping experience is probable. 

outdoor signage

4) Display as much merchandise as possible

Fill your shelves with as much merchandise as possible. This will avoid backroom stock while giving shoppers the impression that you can meet product needs. 

grocery store merchandising

5) Make sure all merchandise is priced 

Displays are ineffective if you do not have clear and easy to locate price tags on your merchandise. So ensure all items are priced and that prices are consistent throughout your store.  Shoppers are likely to get frustrated without proper product and pricing information

product pricing

6) Cleanliness is key 

Make sure your retail space is clean and organized. This will ensure that you are creating an appealing shopping experience for your customers.

A clean retail space will also attract shoppers and result in repeat visits. Cleanliness in your retail space includes a clean storefront (window displays, front doors etc.), fresh floors and shelves, and neatly stacked product displays. 

store front

7) Use loss leader pricing 

This is when you sell products at below cost (or minimum profit margin) to entice shoppers to make a purchase. It’s important that you place your loss leaders at the back of the store.

This way, shoppers are encouraged to walk past other product displays in order to reach the “loss leader”.  The intention behind this tactic is to drive sales of higher margin products in your store.

Loss leader pricing often leads to impulse purchases and is commonly used by popular grocery chains. For example, most grocery stores use milk or eggs as a  loss leader. As shoppers have to walk to the very back of grocery store to purchase these items, it is highly unlikely that it will be their only purchase. 

customer shopping for milk

We will be posting more merchandising tips in the upcoming weeks! Subscribe to our blog to stay updated on merchandising trends, strategies, and industry best practices. 

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