Merchandising: How Not To Sell Anything

Even though I am in stores, for work, almost every day, I don't consider myself an expert on retail marketing. I know some stuff and I think I know a little bit more than a regular consumer. I know I know more than some of the folks who actually work in the stores. However, before I became a merchandiser, I didn't know a lot of the things I get to share with you here.

We all have heard that time is money. But also, space is money too. Mass merchandisers (like Walmart, KMart, Target) use several formulas to project their profits. One of those formulas is cost per area. This is the amount of sales they make in a particular aisle, shelf or endcap. They know how much product they need to sell in that one area to meet projected profits.

Here is an example of NOT doing this...

There are 2 completely empty displays. And the far right one is practically empty, as well. Too empty to be taking up profitable shelf space. This is not what a retail store should allow. This is a high-traffic store and this is the new product shelf and every hour this store is open, they are losing out on a huge opportunity to sell=make money. And, this is why companies will hire merchandisers, such as myself, to go into stores and assure that their product is out on the floor and visible.

This display gets a lot of kudos...

This is at Payless Shoes. They have a cosmetic line and their target audience is mid-teens to early twenties. I like that the price is front and center. And the shelf is stocked. Oh, and another plus, I think $5 is a great price for nail sticker polishes.

Companies pay a store extra, and I mean a LOT, to have their product in key/high traffic areas. And the companies expect them to look nice, have a variety of the items easily accessible, and full.

In a nutshell, that's my job description.

Then, I find things like this. Boy, I bet there is someone who is saying 'That isn't how we do things, blah, blah, blah.' Well, as a customer, I thought it was cute. And, this is a young girl's jewelry store. Things are supposed to be light-hearted...

And I saw this which not only gave me a chuckle but, was also putting smiles on everyone else. And, that was his purpose...

These are just a few things about retail merchandising that I have learned along the way. I hope you find it interesting. Let me know and I can share more.

Have a rich and light-hearted day!

Feather Hair Extensions at Walmart and Lessons on Merchandising

This post is going to be a bit about merchandising, what I do for a living.

First, I can tell something has become a major trend when I see it en masse  at Walmart...

(Check out the grumpy white collar to the left. Guess he's not happy about having to shop at Walmart!)

I saw this display of clip-in feather extensions. I didn't purchase any as I have quite a few already. I got some, about 3 months ago, at Walgreens for about $6. A kiosk in a small mall was clearancing theirs for $5. And then I have purchased a few here and there.

What I'd like to show you is that these displays, the extensions and the candies, are setting atop palettes. The extensions are on a half palette because it is half the size of the ones like the candies are on. Why the candies palettes are painted black, I don't know. But it is more attractive than the bare wood one the extensions are setting on.


Here are the individual packages of extensions...

Considering that there are two extensions per package, that's not a bad deal. And there were several different colors to pick from.

Allow me to take you back to the photos of the displays.

A lot of products will come into Walmart just like you see here with the candies. The display is already set up and with products in it, sitting right on the palette. They have a lot of shrink wrap around them to keep them in place. So, all Walmart has to do is take all the shrink wrap off and move it out onto the floor. As the product sells down, someone needs to replenish the stock. Sometimes a company will hire a merchandiser (like me) to come in and make sure the displays are fully stocked. Completely stocked means more sales.

 
Now here is why a company would hire little ol' me to make sure their displays are fully stocked...

The major aisles in Walmart are called 'action alley' aisles. The sales in these areas are voluminous. You very rarely see a 'no name' brand being sold in these areas.

Walmart 'rents' these areas out to companies because of the high traffic and optimum exposure and opportunity to make sales. The front aisle, right in front of the cash registers, is 'prime real estate.' That's it's actual name. These 'action alley' areas are rented to companies so they can increase sales of their products. So not only does Walmart make profits from selling the items, they also collect 'rent' (even more money) from the companies that set their products in that area.

 Learning about these things put a whole new light on marketing and sales for me. I hope you find value in this information as well. Do you like my small lessons on merchandising? If so, I'd like to continue to share with you.