Merchandising is a sophisticated language.
The layout of your aisles, design of your displays, and organization of your products speak to customers, telling them how to navigate your store and what to buy.
Learning this complex language can feel overwhelming, but we’re here to make it simple.
Whether you’re starting a brand-new business or updating your store’s layout, this blog will share seven foundational strategies for successful grocery store merchandising — helping you keep customers happy and their shopping carts full.
Put simply, merchandising is how you present your grocery store’s products. It includes everything from your overarching floor plan to the way you stock items on the shelves.
With so much on your to-do list, aesthetics might be easy to overlook — but an effective merchandising strategy is crucial if you want to:
So, what does good grocery store merchandising look like? Let’s dive into our top six tips.
First, let’s talk about your grocery store’s overall floor plan. Your layout should encourage customers to explore your entire store instead of heading straight to the items on their shopping lists.
Since dairy and meat are staples for most shoppers, place these high-margin departments near the back of your store. That way, customers have to walk through at least one of your aisles to get to these items.
We also recommend placing grab-and-go and impulse items like candy, single-serving snacks, cold drinks, and cosmetics near the front of your store. Shoppers are most likely to purchase these items if they’re easily available while waiting in the checkout line.
Related Read: Small Grocery Store Layout: 5 Mistakes That Cost You Sales
Eye-catching endcaps are a grocery store merchandising staple. These displays are located at the end of each aisle, making them easily visible when customers walk into the store.
Our top tip is to refresh your endcap displays regularly, highlighting a new product each time customers walk into the store. Here are a few examples of what to display on your endcaps:
Endcap displays are powerful — so use them to promote the right products.
Your produce department is one of the most profitable areas of your grocery store, which means it deserves special attention when it comes to merchandising.
Let’s start with what not to do. Overstocking is one of the biggest produce department mistakes, leading to early spoilage and bruising. Plus, if customers grab an apple from the bottom of the shelf, the whole stack will fall over.
Instead, restock and reorganize your produce displays more often. This approach reduces spoilage, ensures proper turnover, and makes it easier for customers to pick the perfect fruit or vegetable.
Pro tip: Your produce department is a great place to use color! Create patterns with green, yellow, red, and orange apples, bell peppers, and other eye-catching fruits and vegetables.
Let’s say pasta is on your customer’s dinner menu tonight. They shouldn’t have to trek all around your store to find what they need: noodles, sauce, and seasoning.
Instead, consider your customers’ needs when organizing your aisles and displays. Use your point of sale (POS) system’s sales reports to identify items that are frequently purchased together, and place them near each other.
As a bonus, this cross-selling strategy can lead to higher sales! For example, customers might buy a new sauce for their tacos if it’s near the tortillas, or fun toppings if they’re near your ice cream freezers.
“Eye level is buy level.”
It’s a popular piece of retail merchandising advice — but what should you do with it?
Our number-one tip is to align eye-level displays with your specific goals.
If you’re hoping to compete with big-box retailers, prioritize name brands that customers will recognize. If you want to compete on price, put your private label products right at shoppers’ eye level as an affordable alternative.
You might have a well-designed merchandising approach — but it doesn’t matter if you can’t keep your displays neat and organized.
Let’s look at a few best practices to ensure the long-term success of your grocery store merchandising strategy:
Your employees will be responsible for executing your merchandising plan, so provide them with adequate training on how to stock, organize, and maintain your layout and displays.
Our final merchandising tip for grocery stores is to stay flexible.
Your sales and inventory data should guide your merchandising decisions, helping you craft a layout and organize displays that align with your customers’ needs and help you reach your business goals.
For example, let’s say you’ve placed a cherry-flavored sports drink at eye level in the middle of your beverage aisle — but your POS data reveals that these bottles aren’t performing well. This product isn’t worth the prime retail real estate, and you should switch it with a bestseller instead.
You can also look for products that spoil frequently, are vulnerable to stockouts, or have growing demand to make more informed display decisions.
Related Read: Grocery Analytics for Small Stores: 6 Ways To Cut Costs & Boost Profits
Ready to put these strategies to work in your grocery store? IT Retail can help!
Our all-in-one grocery store POS system includes all the reporting and analytics tools you need to make smarter merchandising decisions. Inventory turnover rates, demand data, product performance, and average profit margins are all right at your fingertips — helping you create displays that meet customers’ needs and drive sales.
Plus, our software includes features like a built-in customer loyalty program, e-commerce integration, perishable inventory management, and more to make running your business a breeze.
Start your IT Retail journey today by generating an instant, custom quote using our build and price tool.