3 Different Types of Merchandising and What They Really Mean for Retailers

In the retail business, there are different types of merchandising you should take into consideration and carry in your store! Read this article and discover the 3 most important types!

The truth is that there are many ways for professional and amateur retailers to measure success, however, in the end, the most important key success element is selling as much as possible at the highest profit margins. We know that this may sound pretty easy for you but we can ensure you that in practice, it is not quite easy or simple! The retailers are usually classified by these characteristics:

  • Type of merchandise sold
  • Customer service
  • Assortment localisation
  • Pricing

Assortment localization and range of merchandise definitely have the biggest impact on retailers. All retailers need to be smart and strategic when purchasing products into their business so that they have a selection of products or an assortment which meets their customers’ needs and desires.

In this article, we are going to present you the 3 types of merchandising and what they really mean for retailers:

  • Convenience goods – As you probably know there are products in our lives that we simply cannot live without. We are not talking about products that we love such as our smartphones, laptops, our favorite pair of shoes, but we are talking about products which are essential to everyday living. These products are known as convenience products, and they are widely available and regularly purchased with little effort. Because they are often bought, the consumers shouldn’t need to go through a complicated decision-making process. With convenience goods, a demand transfer is very common, where consumers will choose an alternative brand of their choice if their favorite brand is not available.
  • Impulse goods – According to a research, two-thirds of the today’s economy is impulse buying! Have you ever tried to shop according to a specific shopping list? The chances are that you have a specific budget, but after checking the store, you found extra items which you want to add to your shopping cart. If this is something you regularly do, don’t be afraid as you are not alone, 9 out of 10 shoppers are impulse buyers and make such purchases. This is a popular merchandising strategy implemented by professional retailers where they stock impulse products which are bought instantaneously without any decision-making process. The impulse shopping is never planned – the consumers simply see the goods, pick them and head to checkout. Keep in minds that the most important factors for impulse shopping or impulse goods to sell lies in location and display.
  • Speciality goods – Just imagine that you are traveling to another town to a specific store for a specific purchase. In this situation, this store is referred to as specialty store which offers specialty goods. The customers are always ready to do extensive research for specialty goods, pay much more, and sometimes travel long distances if that is necessary. Usually, these products are much more expensive, which cause consumers to be more selective. When it comes to the demand transfer, the consumers are not interested to choose or to look another offering. They never compare the products as they know what they want. Another offering is not acceptable. Some examples of specialty goods are expensive alcohol, luxury cars, service experts, and etc.

If you want to run a successful retail store, a combination of product types can play a very important role in the progress and profitability of your store! Learn how to use these 3 different types of merchandising and take your business to the next level! You can also checkout business encyclopedia by Shopify for more information!