Successful merchandising requires having a detailed plan for showcasing a convenience store’s products in a way that serves customers’ needs while generating maximum sales.
Nearly a century ago, Paul Mazur — a senior partner of Lehman Brothers, an investment banker and respected contributor to the Harvard Business Review — coined the phrase “five rights” of merchandising: the right merchandise, in the right quantities, at the right time, at the right price and in the right place. (Not to be outdone, another merchandising quintet — the 5 Ps — has sprung up in recent decades: product, price, promotion, place and people.)
Keeping these facets of merchandising in mind is essential when running a business and determining how best to sell product. Understanding how, when and where a customer will be most attracted to an item for sale is necessary, especially as preferences change.
Working with good merchandisers is also essential in order to be certain that retail shelves and endcaps are well stocked with products and displays that attract customers. These professionals also keep close tabs on inventory levels, communicate with management about issues or shortages and remove unwanted items.
Keeping shelves well stocked is a good rule of thumb when it comes to merchandising — customers are more likely to pick up a product from a packed shelf as opposed to a bare shelf.
Another solid merchandising strategy is to adhere to the 80/20 rule, which holds that 80% of the sales come from 20% of the products. This can be employed when prioritizing merchandising efforts and resources. Know your most popular products, and make certain customers always have easy access to them.
Obviously, placing low-ticket items like gum and candy as close to the cash registers as possible will generate impulse sales. Creating distinct sections for related or complementary products — health and wellness or beauty care items, for example — is another smart and effective strategy that can lead to add-on sales.
Among the factors that can disrupt even the most carefully crafted merchandising strategy are shifting customer preferences, trends in the market, competitive pressures, seasonality and supply chain disruption. American consumers are better informed and more demanding than ever before, adding to the elusive nature of merchandising success.
It is important to remember that merchandising need not be limited to store shelves. Indeed, product merchandising can also be done online while making use of promotional activities to increase both traffic and sales. This said, constantly monitor your website to be sure the products you offer are pictured clearly, descriptions are accurate and informative and navigation is simple.
