Effective Merchandising

anthonycurnow.com
In the last issue of Groundswell, we touched on a number of store design elements and principles which can aid in maximising profit. Following on from this, effective merchandising is the fastest, easiest and most cost effective means of increasing your average dollar per spend and overall sales. In a recent trip around the state with John Russell of Brett & Associates, NGIV members/non-members from retail, production and allied trade learnt about some key effective merchandising principle and practices.

John began by outlining the three ways which customers make a decision to buy:
1 – Planned Purchase – 10-15%
2 – Personal Selling – 5-15%
3 – Merchandising – 80-90%
This clearly demonstrates the importance of effectively merchandising stock in store.

Merchandising Techniques

The following techniques were detailed in the workshops, and can be utilised to maximize visibility and appeal:

1. Block product by colour. The more product you have (particularly popular products), the greater the impact and likelihood of multiple sales.
2. Vertically colour block products rather than horizontally, as this increases shop ability and is more likely to attract the customers eye.
3. The area between waist and eye level is where customers pay most attention. This demonstrates the importance of having stock at least at waist height, and placing the products you wish to turnover in this zone.
4. Multi-face products on shelving – this is most effective in the sundries category, where having multiple facings of popular products such as weed killers, general fertilizers or potting media can further increase and encourage sales of those lines.
5. Keep cross merchandised displays simple. As John said – “You’ve either got a plant display with a pot highlighting the plants or a pot display with a plant highlighting the pot”. Use props sparingly to add interest and attract attention.
6. Cross merchandise in uneven numbers and follow the same principles that apply to designing a garden. Think about whether you are producing a symmetric or asymmetric display.
7. Display by end use. This means putting the plant into context for the customer by producing small courtyard like displays. Always feature the products used in the display en masse nearby, so that people don’t feel uncomfortable having to pick apart a display.

A practical example for applying these principles - Select three different plants of contrasting colour, texture, form but with similar growing conditions and display these separately on benches with a single prop to tie the products together. You need to take the guess work out of the customers buying decisions.

A great display at Grevillea Nursery (Werribee). Signage demonstrates the features and benefits of the plant. The large advanced specimen also attributes to the display, showing customers what they are buying into.

Vertical blocking and multiple facing products in the sudries department at Faggs Mitre 10 Geelong.

Signage Techniques

The other most important element to effective merchandising is clear and concise signage, as this will increase sales rather than having staff push face to face sales – they produce a high return for little investment. John suggests A4 signage utilises the following principles:

1. All signage should be uniform and include your branding and logo towards the bottom as you are not selling your brand as they are already in your store, but rather reminding them of where they are shopping.
2. If there is just one thing to remember when it comes to developing signage which sells product for you, it is:
Feature then Benefit
3. The feature of the product refers to the characteristics of the product which will appeal to the customer. The benefit however refers to what the characteristic will do for the customer. For example, a Photinia ‘Red Robin’ means nothing to the customer. The features are new red foliage, responds to pruning and drought tolerant. The benefits are that Photinia ‘Red Robin’ is fast growing, a good hedging plant and is a low water user.
4. Generally, customers want to know:
a. What can I use it for/where can I use it?
b. Why should I buy it (benefits, reasons to buy)?
c. How much does it cost?
5. Prices printed in red have a psychological reaction that sends a perception of value, even if the item is not on sale.

Following on from the presentation by John, attendees to the workshop had the opportunity to actively merchandise stock at the garden centres hosting the workshops. This process was similar to a cook off on Master Chef – the energy and competitive streak in us all came through, spurring the implementation of their newly found skills in re-merchandising stock. A few examples of the outcomes of this process can be seen here.

Johns Suggested Props

- Umbrellas
- Pots and ornaments
- Painted pots or boxes
- Wooden tubs
- Wooden wheelbarrows
- Trellis
- Driftwood
- Sawn tree rounds or blocks
- Rocks
- Bricks and pavers
- Pebbles shell and bark
- Pine cones
- Fruit and vege - real & artificial
- Silk and crepe paper flowers
- Hessian- good colours now
- Cane baskets
- Coloured plastic pots
- Coloured watering cans
- Candles - chunky
- Ribbons
- Coloured paper
- Balloons
- Toy figures - scarecrow
- Florist boxes
- Archways
- Scarecrows
- Carts
- Old bicycle
- Old car
- Carts
- Wheels
- Gates
- Old tools
- Old boat
- Letterbox
- Birdcage
- Old boots
- Telephone box
- Mannequin
- Gazebo
- Flower cart
- Wooden crates
- Straw bales
- Bucket & spade
- Sunhat or bonnet
- Painted mural
- Corrugated iron
- Old cauldrons, water cans, tea pots, baking dishes etc.
- Mock patio ,verandah, front entrance etc.
- Hired costumes for theme promotions

Johns Suggested Merchandising Solutions

- cottage
- tropical
- woodland
- mediteranean
- Japanese
- formal
- native
- shade
- hot & dry
- seaside
- autumn tints
- winter
- spring
- summer
- patio
- Containers
- front doors
- structure plants
- climbers
- easy care
- herbs
- the edible garden
- kids garden
- bird scaping
- screens
- ground covers
- fragrant
- flowers for picking
- rockery
- water gardens