How do you determine which products to feature in a specific store location?

1 Know your customer

The first step in merchandising is to understand who your customer is, what they want, and how they shop. You need to gather and analyze data on your customer demographics, preferences, behavior, and feedback. You can use various sources of information, such as sales reports, loyalty programs, surveys, reviews, social media, and web analytics. You can also segment your customers into different groups based on their characteristics and needs, and tailor your product offering and marketing to each segment. For example, you can identify which products are popular among different age groups, genders, regions, or seasons, and feature them accordingly.

4 Know your products

The fourth step in merchandising is to know your products, and how they fit into your store location. You need to assess and categorize your products based on their attributes, such as features, benefits, quality, price, demand, seasonality, lifecycle, and profitability. You can use tools such as product matrix, assortment planning, inventory management, and markdown optimization to manage and optimize your product portfolio. You can also determine which products to feature, highlight, cross-sell, or upsell, and how to allocate space and resources to them. For example, you can feature your best-selling, high-margin, or new products in prominent or eye-catching positions, and cross-sell or upsell complementary or related products.

5 Know your store

The fifth step in merchandising is to know your store, and how it influences your customers. You need to design and optimize your store layout, fixtures, signage, lighting, and atmosphere to create a positive and engaging shopping experience. You can use tools such as floor plans, merchandising standards, visual merchandising, and customer journey mapping to plan and execute your store presentation. You can also test and improve your store environment, and how it affects your customers' behavior and satisfaction. For example, you can use different colors, shapes, textures, or sounds to attract attention, stimulate emotions, or convey messages.

6 Know your feedback

The sixth and final step in merchandising is to know your feedback, and how it helps you improve. You need to collect and analyze feedback from your customers, employees, suppliers, and partners to evaluate your performance and identify areas of improvement. You can use tools such as customer satisfaction surveys, employee feedback forms, supplier reviews, and partner surveys to gather and process feedback. You can also act on your feedback, and implement changes or solutions that address the issues or suggestions. For example, you can ask your customers for their opinions on your products, prices, service, or store, and use their feedback to enhance your offering or presentation.