merchandizing

Merchandizing, sometimes spelled merchandizing, is the planning, development, and execution of activities to present products to customers in a way that encourages purchase. It spans physical retail stores and e-commerce, and aims to match product availability with consumer demand while reflecting brand positioning.

Key elements include assortment planning, planogram development, shelf layout and product placement, merchandising displays, signage, pricing and promotions, and inventory management. Visual merchandising focuses on aesthetics and accessibility, while category management analyzes product groups to optimize mix and profitability. Digital merchandising covers product content, imagery, descriptions, and recommendation elements on online platforms.

The merchandising process typically involves collaboration among retailers, suppliers, buyers, store managers, and merchandisers. Planograms guide shelf arrangement and space allocation, while in-store or online displays aim to drive attention and cross-selling, including endcaps, cross-merchandising, and seasonal campaigns.

Performance is tracked with metrics such as sell-through rate, gross margin return on investment (GMROI), inventory turnover, in-stock levels, and promotional lift. Planogram compliance and display effectiveness are common evaluative criteria.

Historically, merchandizing developed with the rise of modern supermarkets and retail chains, evolving from simple product placement to data-driven strategies. Roles include merchandiser, visual merchandiser, category manager, and merchandising planner. Merchandizing is distinct from broader marketing in that its primary focus is product presentation, availability, and in-shop or online experience rather than advertising campaigns.