Definition and Purpose of Visual Merchandising

Visual merchandising is the creative use of retail store design elements like mannequins, props, shelves, floor and wall design fixtures for the sole intent of attracting and retaining the interest of shoppers to effect sales and enhance positive shopping experience between the store and the store's customers in the process.

4 Main Objectives of Visual Merchandising

My company is an extension of me, so when I design my stores, I wanted people to feel that they were in my home – Tony Burch, Founder & Creative Director, Tory Burch

In retail store management, visual merchandising is where the rubber meets the road, and when done right, you should gain appreciable traction in terms of attracting your customer segment, increase the positive relationship between in-store dwell time and customer basket size. The main objectives of visual merchandising can be grouped under four main headings; namely:

To attract the interest of a shopper: this starts from the external environment of the store with creatively attractive exterior design elements like engaging window display design elements. A window display is the first visual engagement between a shopper and the store. It should draw attention, attract interest, inspire desire, and motivate action on the part of the shopper. Savvy window displays are not cluttered. They should selectively display products of interest, with price tags, appropriate seasonal themes, the latest assortments of products that are targeted at the market segment of the retailer. In the apparel industry, mannequins should showcase the latest season's fashion or fad. Window display must not carry the same product assortments for too long. Frequent variation of the latest products assortment is the hallmark of savvy retailers.

Impactful and engaging: the in-store visual elements must be impactful and engaging to the senses of the shopper. Your wall colors must attract and not repel the shopper. The illumination must be bright but not so bright as to subconsciously create stress and anxiety for the shopper. Your music selection must be appropriate for your market segment, and the volume should be low enough to be heard and not too high that it irritates the shopper. Your shelf-arrangement must correspond with the cadre of customer segments you serve.

Inspirational display that motivates: the third main objective of the visual merchandising display is to create a sense of wow through novelty and aesthetics. In apparel retailing, mannequins can be used to create 3-D representations of how particular new fashion fads will look like when displayed. Creatively arranged shelves and gondolas using planograms can induce impulse purchase instincts, especially for low-price items that require minimal cognitive tasks and efforts before purchase-decisions are made.

Retail store brand identity: one of the most effective tools you can use to create and sustain your store brand identity is your visual merchandising display technique. In this respect, consistency in storefront or frontend design, in-store shelves and gondola layout, product assortments display, window design and layout, type of music that appeal to your customer segment and other in-store elements should convey a taste that is inconsonant with your brand image. The consistency must apply to all your stores if you are a multi-store retailer. For instance, the image of a smiling, white-haired Colonel Sanders and Golden Arches are a consistent fixture in all KFC restaurants. And consistent red wall color, tables and chairs, and seating arrangements are regular features in all McDonalds and KFC retail restaurant outlets.

Interior Displays

Granted that visual merchandising is the creative use of visual elements to engage customers and create exchange opportunities between shoppers and retailers, the interior display components are one set of elements for achieving this goal. As a retail entrepreneur, the main goal of driving your interior display decision is to attract and increase the in-store dwell time of your shoppers. The more a shopper remains in-store, the higher the propensity for of a purchase decision and a corresponding increase in your shoppers' basket size. Your interior displays must reflect the customers' needs and this, in turn, should drive your decisions about store design and layout, product assortment display plans and strategy, point-of-sale display, in-store signage, and advertisement. All elements of your interior design must work in lockstep to deliver a memorable customer experience.

In-Store Layout

Your retail in-store layout could be physical or digital, but the goal remains the same: to increase the time spent in your store so that you can induce purchase and grow your revenue. Your choice of an effective in-store layout should address the following questions:

• What is the consumer segment you want to serve?
• What type of interior design fixtures will appeal to them?
• What is the nature of products or services you will sell or are currently selling to them?

3 Types of Footfall traffic Layout: Which Type is suitable for Your Customer Segment?

The most common in-store footfall traffic design layouts are:

The grid layout: this is a repetitive rectangular arrangement of shelves and gondolas (stand-alone shelves). This layout maximizes the shop floor space and is adequate for shoppers who are in a hurry. Supermarkets, drugstores and hardware stores employ this design.

On the upside, a grid layout is convenient for shoppers who are in a hurry as they can quickly shop and leave. It also simplified inventory management as fixtures are repetitively uniform, and floor space is maximized. Signages can be used to assist shoppers in quickly tracing the location of the items they desire to purchase. On the downside, a grid arrangement lacks creativity and is not very attractive.

The racetrack layout: as the name implies, racetrack layouts force shoppers to take pre-determined paths, and thus come in contact with all products on display.
One advantage of this arrangement is that it encourages impulse purchases. A disadvantage of this layout is that hurried customers are forced to take pre-determined paths and this can cause shopper irritation, and even frustration.

However, the placement of narrow intermittent shortcuts along aisles can minimize customer irritation for those shoppers who desire to leave without traversing the entire pre-determined shopping aisles.

The free form layout: in theory, the free form store layout is the simplest form of in-store layout. They are usually designed like a boutique store with no particular intention of subconsciously guiding

the flow of footfall traffic within the store. Product categories are displayed in such a manner that shoppers can easily move from one section of the store to another with no rigid demarcations. The freeform design encourages in-store browsing, and they convey a sense of relaxation. And compared to a grid or racetrack design layout, a savvy design requires a lot of creativity.

In-Store Bundle Presentation

The main objective of presenting products as a bundle is to demonstrate to the shopper how complementary products in a bundle will look like when purchased. In the apparel retail store, mannequins are used to demonstrate how a combination of separate apparels will look like when purchased together. In a furniture store, a dinner table, complimented with matching chairs, silverware, table cloths, wine glasses, and table napkins can be bundled together so that a shopper will have a mental visualization of how these individual items can go together when purchased. Bundled demonstrations encourage impulse purchases in department stores as over one-third of most purchase decisions are made in-store. Bundle demonstrations should not be done haphazardly. The usage context must be the primary determinant of a bundle demonstration. This is important as the visual presentation of products in a bundle is usually designed to encourage impulse purchase by demonstrating how complimentary items in a bundle go together.

Atmospherics & the Sensory Elements

In-store atmospherics include those controllable elements like your store layout, lighting, music, scent or aroma that you purposefully select with the intent of encouraging your customers to visit your store and dwell in it long enough to make purchases. Your store layout maybe grid-design, racetrack format or free-form. The in-store ambient temperature of your retail store must attract and retain your shoppers. Your lighting format must be bright enough to illuminate your shelves and gondolas but not so bright as to cause anxiety, nor too dim to depress the mood of your shoppers, and your music must correspond to the taste of your target audience. For older customers like baby boomers, metal music is a wrong choice, and loud music irritates. Your decision about scent should elicit a sense of nostalgia for older customers and the in-store scent, like the aroma of freshly baked bread, freshly brewed coffee, should encourage impulse purchase behavior.

The five sensory elements of sound, taste, touch, sight, and sight must work incongruent to encourage in-store dwell time because the more your customers linger around in your store, the greater the propensity you have to increase the basket size of their purchases.

Research findings in sensory marketing and neuromarketing confirm the subconscious effects of the senses on consumer buying behavior. Sensory marketing is a vital part of visual merchandising techniques, as it locks in on consumers sensory perception, judgment, and behavior, thus affecting purchase decisions. A summary of the effect of scent, music, and light are presented below:

Light

In a retail store environment, light can be used to serve many purposes, from highlighting specific locations of the store where you have products that you desire to focus the attention of your customers on, to enhance the general ambiance of the whole store. Use your in-store lighting design to positively influence the behavior of your customers. Softer light slows the pace of movement and thus can increase customer dwell time. On the other hand, very bright light speeds up the pace of movement of customers and decreases the amount of time spent in your store. There is a positive correlation between the intensity of in-store lighting and shoppers dwell time. Your decisions about how to employ light is an important element in your store branding strategy.

Music

Your store brand should determine the choice of music you subscribe to. Choose music that is popular with your target customer group. The goal should be to use music as a sensorial element in increasing the dwell time of shoppers in your retail store. If your store format is a convenience store or a supermarket or an upscale restaurant, then consider calm, soothing and preferable classical music as these are more effective than heavy metal. Loud music irritates, distracts and decreases the shopper dwell time. However, if teenagers are your target customers, then consider hip-hop and such other similar music that they enjoy. This will increase their dwell time, and as there is a positive correlation between in-store dwell time and store purchases, your chances of increasing the basket size of purchases in your store are enhanced. 

Scent

You can use scent as a differentiating element in branding your retail store. After sight, scent or olfactory stimulation is the next most impactful of the five sensory elements. For instance, the aroma of freshly baked bread or freshly brewed coffee is known to trigger impulse purchases. Lavender and orange scents are soothing and are stress inhibitors. Peppermint and grapefruit scents are stimulating and arousing. Ginger and chocolate scents elicit the sense of romance. The vanilla scent is comforting and calming. Cosmetics and personal care industry extensively use scents in the composition of their brands. Vehicle manufacturers use the scent of leather in new car models.

Conclusion

In conclusion, there are other important elements you should pay attention to in your visual merchandising display strategy. For instance, in an apparel retail store, use mannequins to showcase how a combination of apparels fit together. Endcaps are premium real estates. Use them to display impulse purchase items. Display low-cost items, especially edible products near the checkout counters. Right color combinations should also be used both to attract customers to particular areas of your store and as exterior design features to attract the interest of passers-by. Different colors have different effects. Red, orange and yellow colors create excitement. The blue color is calming. Green color signify nature. Dim light slows the pace of movement. Very bright colors like red excite and decreases shopper dwell time, and fast-food restaurants employ red to decrease time spend in-store. Display high-value products at eye level, and heavy items at the bottom of shelves and gondolas.