What is Merchandising and Why is it so Important in Increasing Retail Sales?

Merchandising is a proven, effective way of increasing sales in your salon.  And, all it is requires is forethought, preparation and a thorough understanding you client behaviour.  Merchandising encompasses everything you do promote and sell your products once the client is in your salon.  

Since the sales process often starts with the eyes, retail merchandising typically involves presenting products in a visually favourable light, to try and encourage purchases.

It can be described as the practice of promoting a product or brand through the use of advertising promotions and other marketing techniques.  It is a key component of any retail business and is used to increase retail sales, salon displays, pricing strategies and promotional events.

Merchandising strategies:

Some of the most popular ways to entice buyers to purchase include:

  • Window and in-store displays
  • Grouping related products together
  • Shelf signage
  • In-salon ads featuring the merchandise
  • Samples and giveaways
  • In-salon promotions and demonstrations
  • Well-stocked shelves
  • Spotlighting promotional items

Focus on cleanliness:

Making sure your products look appealing is key to effective merchandising, but always remember to check how the rest of the space looks.  For example, are clients impress with:

  • Clean floor and aisles
  • Dust free shelves and products
  • Products that are neatly stacked
  • A sense of organisation, rather than overwhelming chaos
  • Related products set up together to suggest how they might be used
  • Enough elbow room to move about comfortably

Benefits of merchandising:

Some salons invest in professional visual merchandisers to come in and spruce up displays and find that this cost pays for itself with increased sales.  Merchandising goes way beyond just moving stock around, to space planning and product staging.  Effective merchandising can result in:

  • Higher sales
  • Faster inventory turnover 
  • Clients spending more time at your retail area
  • Happier clients
  • Increased client loyalty

Salons that focus on their retail space and present products that clients are frequently looking for in a professional manner will find those same clients returning for homecare, gifts and gift vouchers returning for more on a regular basis.

At a certain point, your columns will be full.  You won’t be able to fit any more clients in, as you have reached you full capacity in terms of treatments and services.  Providing you have the stock, retail sales can generate a limitless source of income for your business.  Once you get your retail area and stock management systems in place, then team product sales training will be the final piece of the retail jigsaw to complete to tap into this limitless revenue division for your business.

What are the 5 P’s of Merchandising?

  1. Planning:  Establishing the goals and objectives of the merchandising strategy and developing a plan to achieve them.  Put together a strategy to design customised promotions, which not only boost sales, but deliver a superior standard of customer service.
  2. Positioning:  Crafting a clear, compelling positioning statement that differentiates the product and/or service in the mind of the client.  
  3. Promotion:  Developing and executing marketing tactics that will drive awareness and demand.
  4. Pricing:  Setting the right price point to maximise profit and appeal to the target client.
  5. Placement:  Ensuring the product is placed in the correct locations to maximise sales.

The 5 P’s of marketing are still incredibly relevant and can be even more powerful with the right use of sales analytics.

Never forget just how much your clients love to buy your homecare products.  Include shopping in your retail area as part of your amazing customer experience.  Teach your team to so close to your clients, that they learn to tell them what they need well before they realise it themselves!

Top 10 reasons to increase your retail sales:

  1. You know more about the skin/hair than your client does.
  2. You know more about the skin/hair than the counter staff in any retail outlet.
  3. To help solve your client’s concerns or problems.
  4. To perfect your client home-care routines.
  5. To ensure your clients achieve the result they desire.
  6. To build excellent relationships with your clients.
  7. To increase the services you offer to your clients.
  8. To push yourself out of your comfort zone.
  9. To provide another revenue stream for your staff – commission on retail sales.
  10. Retail sales have unlimited potential to increase turnover and improve cashflow – the lifeblood of your business.

Effective merchandising can help a retailer/salon owner grow it’s brand, compete with others in the same market area, and stary competitive in any economic conditions.

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