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Merchandising to Maximize Profit

Trends, warm colors, cool colors, tables, rounders, mannequins on point!  Merchandising must be eye catching to draw the eye and disposable income those walking through the doors.  But, the visual appeal should also be balanced with the ability to enable maximized profit.  There should be some purposeful profit in the pretty.

Let’s start with endcaps or end panels.  Situated on the aisle, these are locations hard for potential shoppers to miss.  We often see new product or seasonal product here.  Do we always consider the product is moving the needle on AUR or average unit retail YTD versus just driving sales in the moment?  For instance, if YTD AUR is $8.99 is the product on the endcaps higher than $8.99 so that the overall transactions will have more impact on the P&L?  Now, don’t put something there that the customer doesn’t want.  Then we have done them a disservice AND we are wasting valuable real estate.  It should strike a balance between the two.

Check out the outfits on the mannequins.  Is it something the customer in YOUR market would wear?  If you add up the total cost, is the total higher than the AT or average transaction YTD?  Again, we are looking to drive growth month-over-month and year-over-year.  With a business owner mindset, we are always looking to improve trends, not just make a sale.

If you look at shelf displays, how many units have we presented?  If there are 3, is that higher than the UPT or units per transaction for the year?  Are you applying financial acumen to business acumen?  Are visuals driving sales or are visuals and merchandising enabling maximized profit?

How do you help your team to have both a visual lens and one that is focused on maximizing profit WITHOUT losing sight of the customer?  What could your team do with additional profit-add talent for more merchandising or to help more customers, allow others to take more time off, have more tools and resources?

 

Differentiate merchandising with profitability.

 

 

 

 

 

 

 

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