Top 4 Visual Merchandising Challenges Retail Stores Face

Dec 6, 2018

retail analytics

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.

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