Have you heard of the butterfly effect? It's a chaos theory which postulates that the flapping of a butterfly's wings in Brazil can cause a tornado in Texas. In the world of retail and mass distribution, this principle has a particular resonance today: tiny changes in your strategy can have a major impact on your business. merchandising can trigger spectacular increases in your sales. An approach that is particularly relevant at a time when cost optimisation is becoming crucial.
According to a recent study by LSA, 73% of purchasing decisions are made directly at the point of sale. Yet most sales managers focus their efforts and budgets on large-scale marketing campaigns, often overlooking the potential of in-store micro-adjustments.
1. Merchandising, an underestimated but essential lever for triggering purchases
Why does merchandising influence 73 % purchasing decisions?
When consumers enter a shop, their intention to buy is often vague. They come in with a general idea of what they're looking for, but their final choice is largely influenced by the environment in which they find themselves. This is where merchandising comes in.
A poorly positioned product or a stock shortage can cost you a sale in a matter of seconds. Conversely, strategic merchandising can double or even triple sales volume. This is precisely what a study by the Nielsen Institute proves: a good merchandising plan can generate up to 30 % of additional sales without any advertising investment.
The problem? Many brands and manufacturers concentrate their efforts on macro-actions (massive advertising campaigns, promotions, digitalisation), while neglecting micro-adjustments at the point of sale, which are much more profitable in the short term.
The butterfly effect in shops: subtle changes with spectacular consequences
Let's take a concrete example:
- A product placed at the bottom of the shelf records 40 % fewer sales than a product at eye level.
- Facing 2 products instead of 4 creates a feeling of scarcity and lowers the conversion rate.
- Overly discreet POS (point-of-sale) advertising reduces visibility and lowers consumer engagement by 25 %.
It's these little details that make the difference between a brand that performs well and one that goes unnoticed.
Customer perception: a key factor in successful merchandising
Buying behaviour is directly affected by visual and psychological factors. A study by Cambridge University has shown that the human brain processes visual information in less than 0.25 seconds. This means that customers decide almost instantly whether they are going to be interested in a product... or ignore it.
Good merchandising is based on three pillars:
- Visibility: a well-placed and staged product captures attention.
- Accessibility : the easier a product is to handle, the more likely it is to be purchased.
- Attractiveness : Lighting, colours, packaging and message all influence the perception of value.
To remember: an optimised shelf directs the consumer's gaze, influences their behaviour and stimulates the act of buying.
2. Merchandising levers to maximise impact at the point of sale
Product placement: an underestimated strategic challenge
The layout of products on a shelf has a direct impact on sales performance. Good positioning can significantly increase the conversion rate, while poor positioning can make a product disappear in the eyes of the consumer.
A number of fundamental principles guide effective implementation:
- Eye level, sales level: the most visible products record up to 35 % more sales than those placed at the bottom of the shelf.
- The shop's hot and cold zones : some locations naturally generate more footfall and interaction than others. For example, aisle headers attract up to 50 % more attention than a conventional aisle.
The mass effect: A product displayed in large quantities creates an impression of abundance and popularity, stimulating impulse buying.
A study carried out by the IRI institute shows that the simple repositioning of a strategic product can generate an increase in sales of 20 to 40 %. Although simple to implement, this lever is still under-exploited by manufacturers and distributors.
Signage and dramatisation: capturing attention to influence purchases
Visual merchandising plays a decisive role in the way consumers interact with a product. Several elements are particularly effective:
- Clear, informative signage: Good labelling reduces hesitation and speeds up decision-making.
- Dynamic and interactive point-of-sale advertising Video animations or innovative displays can capture attention and create an emotional link with the brand.
- Experiential spaces : offering the opportunity to test a product in shop increases the chances of purchase by 30 to 50 %, particularly in the high-tech and cosmetics categories.
The effectiveness of dramatisation depends on the activation of several sensory levers. A study by the Journal of Retailing shows that immersive point-of-sale experiences boost customer engagement and improve brand recall by 60 %.
Optimising assortments: offering the right variety to avoid frustration
An overcrowded or poorly structured display can lead to cognitive overload for the customer, resulting in a lower conversion rate. Conversely, too limited an assortment can frustrate shoppers and encourage them to turn to a competitor.
Optimisation involves a number of actions:
- Working on the width and depth of the range : ensure sufficient diversity without drowning the consumer in too much choice.
- Remove low-performing references: focus on the products that generate the most value.
- Strategically highlighting new products and promotions: a product promoted in a dedicated area records an average increase in sales of 25 %.
The challenge is to strike a balance between an attractive offer and clarity for the consumer. A brand that masters this balance strengthens its impact in shop and significantly improves its sales performance.
3. Outsourcing merchandising: an agile and profitable performance lever
Why in-house merchandising is becoming a performance brake
Many companies manage their merchandising in-house, thinking that they retain total control over their operations. However, this approach has a number of limitations:
- Lack of responsiveness to market developments Consumption cycles are becoming shorter and shorter, requiring rapid in-store adjustments.
- A heavy workload for sales teams Merchandising is often entrusted to the field sales force, distracting them from their core business of selling.
- A lack of expertise and appropriate tools : Brands don't always have access to best practice or to technologies for tracking and optimising shelf space.
Faced with these challenges, outsourcing merchandising is a strategic solution for improving profitability while guaranteeing quality execution.
The tangible benefits of merchandising outsourcing
Using a back-up sales force or a team of specialist merchandisers offers a number of advantages:
- Flexibility and agility : Adapting the in-store presence to take account of sales peaks, product launches or seasonal needs.
- Sector expertise : Teams trained in the specific features of each sector (supermarkets, hypermarkets, pharmacies, high-tech, DIY, etc.) ensure that merchandising strategies are implemented effectively.
- Save time and increase efficiency By delegating these tasks to experts, in-house teams can concentrate on higher added-value tasks.
- Data-driven performance management : Using advanced reporting tools to measure the impact of in-store actions and adjust in real time.
- A study by Nielsen shows that companies that have outsourced their merchandising achieve an average increase in in-store sales of 18 %, thanks to better execution and rigorous performance monitoring.
Measuring the ROI of an outsourced merchandising strategy
One of the main reservations sales managers have about outsourcing is the fear of a lack of control over operations. However, thanks to digital tools and performance indicators, it is now possible to manage these actions with precision.
Key KPIs to track include:
- Sales trends before and after the intervention Measuring the direct impact of merchandising on sales volumes.
- The rate of shelf breakage : Good merchandising reduces the risk of stock-outs and optimises product rotation.
- Compliance with merchandising plans : In-store roll-out monitoring using reporting and geolocation tools for teams in the field.
With effective management, merchandising outsourcing becomes a real lever for optimising costs and maximising sales. It enables brands to adapt quickly to market changes, while benefiting from cutting-edge expertise and impeccable execution.
Conclusion: mastering the butterfly effect of merchandising to maximise sales
Merchandising is much more than a simple point-of-sale optimisation lever: it is a determining factor in sales performance. As chaos theory suggests, small adjustments can have a major impact on sales.
Optimising shelf space, dramatisation and product placement have a direct influence on consumer buying behaviour.
The right merchandising strategies can significantly boost sales performance without the need for additional advertising investment.
Outsourcing merchandising is a strategic lever, offering flexibility, expertise and real-time performance management.
In a context where profitability and efficiency have become crucial issues, it is essential for brands and manufacturers to no longer consider merchandising as a mere detail, but as a growth accelerator in its own right.
Optimising merchandising means turning every point of contact in shop into a sales opportunity. A well-mastered approach can make all the difference between a brand that stands out and one that remains invisible.
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Contact us and find out how our merchandising expertise can help you maximise the impact of your products in shop!
