Lazy merchandising. As Billy Crystal used to say, "Don't get me started."
Last weekend, I was in a well-known store and saw the rack topper pictured above with dozens of sale prices stuffed into a lucite holder. In the old days, employees had to remove each one as the promotion ended and file or discard it.
But it is easier to skip all that and rotate as needed, knowing that this stuff is on sale daily.
I circled the date range from up to down: 1/20/2019 to 2/15/24. Down was over six months ago, and up was more than five years.
You can't be lazy if you want to attract customers. Merchandising is much more than sale signs and discounts.
Retail merchandising used to mean anything from a Manhattan Bergdorf’s holiday windows - that take a full year to go from concept to unveiling - to a new dress that “has to get on a mannequin.”
Today, smart retailers understand that their online store, which can contribute 20%+ to their total sales, must take as much time to merchandise or more than their stores. For this article, I’m grateful to have the opinions of Josh Orr, founder of Capital Commerce; Dan Hodges, founder of Retail Store Tours; Johanna Iwanicki, head of merchandising at Fleet Feet; and my buddy, CEO of Hammitt handbags, Tony Drockton.
I’ve asked them to share their fresh ideas in retail merchandising, and we’ll look at what is working right now in stores to capitalize on the discovery aspect of buying online and in-store. We’ll build on previous articles, including:
- My Primer on Retail Merchandising
- 12 Insights How To Merchandise Your Store
- Steal These 9 Visual Merchandising Tips
Dan Hodges offered this caveat when talking about merchandising: “Target's report today was good, and I believe it is because Brian Cornell and his team visit stores as an SOP. He is out in the market and sees the trends in real-time.”
He continued, “There is a reason why Apple evaluates its salespeople not, as one might expect, on technical proficiency but rather on customer empathy. It is because Apple’s leadership, awash in algorithms, knows that even the most complicated algorithm can’t replace a simple smile.”
And finally, “There is a reason why Whole Foods CEO Jason Buechel leaves the isolation of his corporate office to visit stores regularly so that he can interact directly and actively with employees and customers. He leads by example, paying more attention to his people than to his smartphone.”
I couldn’t agree more. The best way to understand your store is to be in it and see how shoppers interact with your staff and displays.
In-Store Merchandising Innovations
Interactive Digital Displays
Sephora's digital mirrors allow virtual makeup try-ons. Using 3D augmented reality by ModiFace, a user's face can be simulated using cosmetics in real time. Take a look.
In what looks like something out of the movie Minority Report, Nike's RFID-enabled product displays combine online and in-store. Their interactive displays provide detailed information when items are picked up.
I first covered this in my blog, How The Retail Store Of The Future Illuminates Retail Trends, a decade ago, and it has now come to life.
Omni Talk Retail's Anne Mezzenga gives us an exclusive tour of H&M's in-store RFID technology, transforming inventory management, customer experiences, and omnichannel strategies. Look for more retailers to embrace RFID for a real-time look at what's happening in merchandising, foot traffic, fitting rooms, and more.
"You can't sell it if it's in the back" - solved! Casey Collins shared how Dick's Sporting Goods continues to execute using RFID to scan their displays, compare to what isn't out, tell the associate what it is and where it is located to make sure all inventory is shown.
Sustainable and Eco-friendly Displays
Naked packaging is a term coined for Lush's package-free products, which were first discovered in Milan and are meeting with success.
Patagonia's tall green in-store recycling bins for used footwear showcase its commitment to sustainability.
Storytelling Through Visual Merchandising
The NHL Store in Manhattan uses so many visual storytelling points that it is hard to choose just one example, but this jersey display framed in what looks like ice is just brilliant. All their touchpoints are aligned. Build more of these, please :)
L’Occitane's flagship in the south of France features Macarons. These items are all inspired by patisserie, reflecting the founder's influence. The design is reminiscent of macarons, although some elements may not be ceramic. Together, they create a unique collection you can only find in showcases worldwide. There are six pieces of this type and three of another, all designed to look like a patisserie, with each piece a tribute to the founder's inspiration. The store's offering of a unique product called Macron, available exclusively at this flagship location, demonstrates the power of limited product availability to create a sense of exclusivity and drive customer interest.
Dan Hodges with Retail Store Tours shares this experience in the store here:
All five senses are actively engaged in the store experience, suggesting a multisensory approach to retail that likely includes visual displays, fragrant products, textured packaging, product sampling, and possibly background music or sounds that transport customers to the South of France.
Multisensory Product Presentations
An oft-told story is how Walt Disney was the first to use scent marketing by blowing the smell of warm chocolate chip cookies into the streets of Disneyland BEFORE you reach the bakery that sells them.
A recent article highlighted Jo Malone's scent-based product groupings. The Tasting Table is the place to start. Organized by scent families (florals, woody, etc.), it showcases an array of available scents, identifying the top, base, and finishing notes, and offers suggestions for layering other scents.
Stereo stores have always had speaker rooms, but Sonos' listening rooms are set up as different rooms: study, living room, kitchen, etc, in your home, and you control the sound via an app on your phone.
Flexible Display Systems And Signage
What's old is new again. When the Broadway department store opened in Glendale, California, in 1976, it featured moveable walls and shelving units to allow complete freedom in using the spaces. Unfortunately, they were never moved. I know; I worked there for two years and lived in the neighborhood. Look for more walls on wheels and ways to change areas in-store.
I liked Mejuri's The Vault pop-up in New York using paper softwalls.
So many retailers use signage just for directions or sales, but I really liked Eataly's old-school presentation, which used single-vendor storytelling to make the product stand out. These three signs below explain what makes each brand special for a category where your eyes could glaze over otherwise.
Chief Cheerleader of Hammitt handbags Tony Drockton shared, "Physical retail doesn’t need another screen or the latest tech gadget. It needs more human-to-human connection."
"Online retail has to solve one of two needs: Convenience or low price. Notice neither one matches the experience a luxury customer craves alone. Adding the convenience of an owned online experience to a great physical retail experience is lightning in a bottle when done right.”
Displays That Work
Category Destinations
Johanna Iwanicki, head of merchandising, for Fleet Feet shared, "The best way for us to offer convenience is by making category destinations, such as wellness products or hydration essentials, that allow customers to easily shop all their options without having to search.
We also want to offer customers an experience, which is easier said than done for some categories. We encourage customers to try different massage tools by offering demos. With apparel, customers want to experience the quality of the fabric—how it feels against their skin—as well as see how it looks on their body."
Folding and IRL Displays
"Creating folded displays is tedious, but time and again, customers will pick up folded items. Folding apparel and displaying it on tables or shelves within a wall is a great merchandising trick for customers to touch the product. Additionally, eye-catching mannequin displays allow customers to picture the apparel on themselves or the person they're shopping for in a way that a hanger can’t replicate.
Apparel needs to be a dimensional experience, and at Fleet Feet, we try to bridge the gap between online and in-store merchandising through our on-body performance and lifestyle photography and action-posed mannequins."
What Not To Do In Merchandising
Adding friction or sameness causes consumers to rethink going to a brick-and-mortar store because getting what they're looking for is a hassle—precisely what they want to avoid.
Check out this display of snack nuts at CVS. Stores these days are treating Twinkies like they're the Crown Jewels. You need to summon a sales associate like some retail genie just to get your hands on a tube of toothpaste.
Nolan Wheeler of SYNQ Technologies shared how Amazon CEO Andy Jassy revealed on an earnings call how theft and the subsequent tactics stores are rolling out to prevent it benefit Amazon's sales: "Merchants must merchandize their way to the natural evolution of shopping. From general stores to mass merchants to online, low velocity, high cubes, and high-risk products need to find an operational approach to solving the theft."
Merchandising Your Online Store
Josh Orr, CEO of Capital Commerce, revealed in a recent podcast that the number one misconception retailers hold about their online store is that pictures of their store offer the same feeling as their store.
"For example, if they should have a “fun and free” feeling when they walk in your store, how can we offer that same feeling online? Using an image of a person experiencing that same feeling and displaying the lifestyle you want your customer to strive for would be a great place to start.
Bridging the Gap: Omnichannel Merchandising Strategies
Taking the product to the consumer - Big Peach on Wheels. Their fully stocked mobile shoe fitting and specialty retail experience! The 30-foot vehicle will travel with a complement of technology and team members to fit visitors for the perfect athletic shoe. It also has full audio and video to add entertainment and education to every stop. The ready-to-go showroom and inventory include 400+ pairs of shoes, socks, and inserts.
Conclusion
These merchandising innovations are all great to read about, but reading won’t attract more customers or increase your conversions.
Chris Browne, former OPS VP at Ted Baker, shared this: “We (I) had a saying at Ted Baker, 'If you're having a quiet day ....knock a stand over.' And we did.....literally..... the phrase means to change something and make a noise (visually or aurally) while you're about it.
Customers get used to seeing the same ..same old ...so change something, make a mess, then clear it up. And this applies to online and offline equally....do something different to what you've done before and ideally differently to the competition.”
Experience your online store as a consumer. Do you discover friction in the buying process? Remember, the back button is causing you more lost business than Amazon.
Have your store mystery shopped. Do your stores come off as welcoming places of discovery or a hodgepodge of mediocre displays and uninspired associates? Remember, 80% of sales still come from physical stores.
You must monitor conversion rates, train associates, and surprise shoppers with something presented so well that they must take it home that day.
Also, do not allow laziness in signage or merchandising on your sales floor.
If you'd like help training your crew, I encourage you to check out SalesRX+, my online retail sales training program.
