BLOG

Top 4 Visual Merchandising Challenges Retail Stores Face

Dec 6, 2018

Today, in this competitive environment, a visual merchandising strategy plays a very crucial role in boosting sales and profit margins for retail companies. Visual merchandising primarily deals with ‘the look and feel’ of the brand and invokes the sensory receptors of the potential and target customers. Today, brands are realizing the fact that offering a premium experience to shoppers contributes to their profitability as well as results in improved brand goodwill and loyalty. However, putting the right visual merchandising strategy in place is a daunting task. This requires skills to simplify fundamental components in order to provide shoppers with an unforgettable experience.  Furthermore, there is a lot of techniques involved in it than just arranging products in an attractive manner. A detailed strategy, planning, and understanding of consumer behavior are very essential for effective visual merchandising in retail stores. Here are five challenges that every retail store faces in visual merchandising.

Are you facing any of these visual merchandising challenges or want to gain actionable insights into our category planning and merchandising operations? Contact us now.

Visual Merchandising Challenges

Challenge#1: Inadequate Display Space

Space allocation for various products is a strategically pre-planned process. So, in order to allocate space to new products, merchandisers need to struggle a lot.  This, in turn, leads to limited strategic planning and dissatisfactory store performance. Thus, the retail stores end up finding themselves much behind the competitors.

Challenge#2: Limited Flexibility

Limited flexibility is one of the most important challenges that every small retailer faces in visual merchandising. Competing suppliers always want their goods to be displayed at the front of the store. Furthermore, products that are huge, require, and engage a considerable amount of space. Such products need a considerable amount of space that catches customer’s attention from all angles. Moreover, there is difficulty in creating flexibility with large merchandise like electric appliances, furniture, and home décor products. This impacts the merchandising efforts significantly.

Challenge#3: Insufficient Budget

When it comes to devising and executing a successful visual merchandising strategy, retailers tend to focus and invest less. This is done to cut cost and maximize profits. But most retailers fail to understand that they don’t always need a huge budget to attain success at visual merchandising. If you have a proper strategy in place, even limited budgets can help yield positive results.

Challenge#4: Clashing Interests

Conflicting interests of visual merchandisers, top management, and staff can pose a big threat in visual merchandising. In most cases, top management and the supplier predetermine the decision as to where products are displayed. Furthermore, sometimes, what seems appropriate to the visual merchandiser could be tough for the sales staff to implement. These conflicts in interests result in a lack of cooperation and coordination in retail stores and ultimately a failed visual merchandising strategy.

Quantzig’s Solution

Having years of expertise in merchandising analytics solutions, Quantzig helps retail companies and merchandisers to make informed decisions daily, both at tactical and strategic levels. Also, our solutions help businesses optimize store-front layout and merchandise assortment, optimize promotions and markdowns, track new product performance, and boost profit margins. Our solutions offer relevant information for strategic planning to improve the performance of the store. With an experienced team of certified data specialists, Quantzig’s merchandising analytics solutions help businesses optimize their in-store operations based on the buying patterns of customers and empowers marketers to identify marketing opportunities that will achieve the maximum ROI.

Request for a free proposal to learn more about how Quantzig’s analytics experts can help your business overcome these visual merchandising challenges.

Ready to Harness Game-Changing Insights?

Request a free solution pilot to know how we can help you derive intelligent, actionable insights from complex, unstructured data with minimum effort to drive competitive readiness, market excellence, and success.

Recent Blogs

Emerging Applications of Artificial Intelligence in Medicine

Emerging Applications of Artificial Intelligence in Medicine

The main aim of artificial intelligence in medicine is to mimic human cognitive actions which is directly or indirectly bringing pioneer changes in the field of healthcare. Artificial intelligence in healthcare simplifies the processes of healthcare organizations as...

read more
HR Technology Trends Redefining the Modern-Day Workforce

HR Technology Trends Redefining the Modern-Day Workforce

In 2020, we witnessed rapid changes in workplace structures and business processes amid the pandemic outbreak. Advanced HR analytics solutions proved their potential amid the uncertainties by playing a crucial role in helping businesses understand and engage with a...

read more

Industries

Our advanced analytics expertise spans across industries, sectors, and functions, which enables us to deliver robust, agile solutions to all our clients. These are our core competencies, formed through years of experience.

Insights

Our free resources shed light on our extensive expertise and equip you with information to accelerate decision-making, growth, and innovation.