Why You Need a Robust Merchandising Strategy

Whether you run an eCommerce brand or a physical store, effective merchandising directly influences sales performance, customer engagement, and inventory optimization. According to a report by McKinsey & Company, retailers who prioritize strategic merchandising can see up to a 20% increase in revenue.

In this article, we’ll break down why a strong merchandising strategy matters, and how it can help retailers stay relevant, profitable, and customer-focused in 2025 and beyond.

1. Enhances the Customer Experience and Boosts Loyalty

Consumers don’t just buy products—they buy experiences. 81% of shoppers say they are more likely to make a purchase when a store offers a personalized experience (Accenture).

A strong merchandising strategy allows you to:

* Tell a consistent brand story across all channels

* Curate product assortments based on customer segments

* Create seasonal or themed displays that emotionally resonate with your audience

2. Increases Sales and Average Order Value

Strategic product placement and cross-merchandising can significantly boost conversions. When done right, visual merchandising can increase sales by 10-15%, according to the National Retail Federation.

Examples of effective tactics:

* Placing high-margin items at eye level

* Grouping complementary products together

* Using data to promote best-selling items

3. Improves Inventory Turnover and Reduces Waste

Merchandising isn't just about aesthetics, it’s a vital tool for inventory management. According to Retail Systems Research, over 40% of retailers report that poor merchandising leads to excess inventory and markdowns.

With a robust strategy, you can:

* Analyze product performance trends

* Avoid over-stocking and under-stocking

* Align your supply chain with customer demand

4. Responds Quickly to Retail Trends and Consumer Behavior

Retail trends evolve fast. From TikTok-driven demand spikes to seasonal surges, agility is key. A dynamic merchandising approach lets you respond to market shifts in real-time.

Consider that 74% of consumers expect brands to adapt quickly to their changing needs (Salesforce, State of the Connected Customer Report, 2024).

Your merchandising team should be empowered to:

* Use real-time analytics to shift displays and product focus

* Test new layouts and assortments rapidly

* Integrate trend forecasting into merchandising calendars

5. Supports Omnichannel Retail Consistency

Consumers today shop across multiple channels—online, mobile, in-store—and they expect ‘a unified experience’. A consistent merchandising strategy helps deliver this.

* 60% of consumers begin their shopping journey online but complete purchases in-store (Think with Google)

* Unified product presentation builds trust and streamlines the customer journey

Benefits include:

* Consistent pricing and visuals across platforms

* Seamless transitions between online and offline shopping

* Improved click-and-collect experiences

6. Maximizes Promotional Campaign Results

Your marketing is only as effective as your merchandising. Campaigns perform better when product displays and messaging are aligned across your site, ads, emails, and physical spaces.

A case study from Shopify shows that retailers who align merchandising with promotional calendars can see a 15–30% lift in conversion rates.

To do this effectively:

* Highlight promotional items in prime locations

* Use banner signage or homepage features tied to campaigns

* Train staff (or use AI tools) to upsell promotional bundles

7. Builds Long-Term Customer Value

A well-merchandised retail environment fosters loyalty and repeat business. Shoppers want to feel understood. By using customer data to inform merchandising decisions, you show that your brand “gets” them.

* According to HubSpot, 93% of customers are more likely to return to brands that offer excellent personalization

* Lifetime value increases when merchandising reinforces customer preferences and buying habits

Conclusion: Merchandising Strategy is a Growth Engine for Retailers

A robust merchandising strategy drives conversions, enhances brand experience, and empowers better operational decisions. Retailers that ignore merchandising will continue to face stagnant sales, poor inventory performance, and weak customer retention. Those who invest in strategic merchandising will build sustainable growth and a loyal customer base.

Need help refining your merchandising strategy? 8 Summits Consulting is here to support your success - get in touch today!