merchandising

Merchandising refers to the activities involved in presenting products to consumers in a way that encourages sales. It encompasses product selection (assortment), pricing, placement, and promotion across physical stores and online channels. The goal is to maximize sales and profitability by aligning product availability with consumer demand and shopping behavior.

Key tasks include category management and planogram development, which specify where and how much of each item should appear on shelves. Visual merchandising focuses on the appearance of displays, signage, and ambiance to attract attention and guide purchasing decisions. Online merchandising covers product content, search visibility, recommendations, and order-by-value presentation to optimize digital conversion.

Merchandisers work with buyers and category managers to determine assortments based on factors such as seasonality, trends, margins, and stock levels. They monitor performance using metrics such as sell-through rate, inventory turnover, gross margin return on investment (GMROI), and conversion rates, and adjust plans accordingly. Pricing strategies, promotions, and promotional calendars are used to stimulate demand and manage sell-in and sell-through.

The practice is influenced by consumer behavior, store format, supply chain efficiency, and competition. It differs across retail environments—mass merchants, specialty retailers, and e-commerce each require different approaches to display, navigation, and assortment. Challenges include maintaining planogram compliance, forecasting demand, and balancing breadth vs. depth of product lines.