Merchandising & Visual Merchandising: How to Maximise Sales in Retail

Merchandising is one of the biggest drivers of retail performance. When executed correctly, it improves customer experience, strengthens brand visibility, and increases sales — often without changing the product range.

From product placement and store layout to promotional signage and feature displays, effective merchandising helps customers find what they want faster and encourages them to buy more while they’re there.

In this guide, we’ll explore how merchandising and visual merchandising work together to improve conversion and maximise retail revenue.

What Is Merchandising in Retail?

Retail merchandising is the process of planning and presenting products in-store to increase sales. It includes:

• Product placement and store layout
• Planogram compliance and shelf standards
• Promotions, pricing and POS execution
• Seasonal merchandising and feature displays
• On-shelf availability and replenishment support

Great merchandising makes shopping easier, improves decision-making, and reduces friction — which is exactly what drives conversion.

👉 Learn more about SIG’s Merchandising Services and how we support consistent store execution across the UK.

What Is Visual Merchandising?

Visual merchandising focuses on the appearance of products and displays, designed to capture attention and influence buying decisions.

It typically includes:

• Retail displays and feature bays
• End caps and promotional zones
• Signage, brand blocking and messaging
• Store aesthetics, lighting and layout

In short: merchandising gets products in the right place, while visual merchandising helps shoppers notice them and want them.

For more ideas and best practice, check out our guide on Visual Merchandising Tips.

Why Merchandising and Visual Merchandising Increase Sales

Successful retail execution usually comes down to three outcomes:

1) Better product visibility

Customers can’t buy what they don’t see. Strong merchandising ensures priority products and promotions are visible in high-traffic areas.

2) Improved customer experience

A clean, well-organised store helps customers shop quickly and confidently. That improves satisfaction and encourages repeat visits.

3) Higher basket value

Strategic product placement and strong displays lead to more impulse purchases, trade-ups, and cross-selling opportunities.

To maintain standards across every site, SIG supports retailers with structured Retail Auditing to track compliance and identify opportunities.

Product Placement Strategies That Drive Revenue

Product placement is one of the most effective ways to improve sales per square foot.

Key tactics include:

• Eye-level placement for best sellers or high-margin lines
• Complementary product groupings to increase cross-sell
• Feature placements for new launches and promotions
• Impulse zones near checkout or high-footfall areas

Even small adjustments in placement can influence what shoppers buy — especially in fast-moving categories.

If you want even more practical ideas, see our post on 7 Retail Merchandising Tips.

The Importance of Planogram Compliance

Planograms exist to drive performance through shopper logic, category structure, and data-led space planning. But planograms only deliver value when they’re followed consistently.

Maintaining planogram compliance helps retailers achieve:

• Better navigation and clearer shelf organisation
• Improved availability on top-selling lines
• Stronger promotional execution
• A consistent customer experience across stores

SIG field teams support this at scale via Merchandising and compliance-led store activity.

Signage and Displays That Improve Conversion

Retail signage should make decisions easier for customers. The best signage is:

• Easy to read at speed
• Clear on price and promotion
• Benefit-led and simple
• Consistent with brand guidelines

Displays should also feel intentional. A clean, well-built display can raise the perceived value of products, increase engagement, and drive impulse sales.

For brands running installations, rollouts or upgrades, SIG delivers compliant execution through Retail Display, ESL & POS Installation.

Using Colour and Lighting to Enhance the Shopping Environment

Colour and lighting can influence how shoppers feel — and where they look.

Retailers use colour to:

• Reinforce brand identity
• Highlight promotions
• Create strong visual structure on shelf

Lighting helps to:

• Draw attention to key displays
• Make products look more premium
• Create focal points and store “zones”

Together, these elements increase dwell time and help guide customers towards priority products.

Seasonal and Trend-Based Merchandising

Seasonal merchandising keeps the store feeling fresh and relevant, and it often creates urgency to buy.

Examples include:

• Holiday promotions (Christmas, Easter, Valentine’s)
• Summer essentials and travel-led ranges
• Back-to-school activations
• Seasonal launches and limited-time offers

Trend-based merchandising can also support performance in categories affected by fast-changing shopper behaviour.

If seasonal merchandising requires quick mobilisation and consistent coverage, SIG can support with broader Field Marketing programmes and in-store execution.

Measuring the Impact of Merchandising on Sales

To evaluate your merchandising strategy, track performance metrics such as:

• Footfall and shopper flow
• Conversion rate
• Average transaction value (ATV)
• Promotional compliance
• On-shelf availability and stock gaps
• Sales uplift during display periods

The goal is to identify what drives results and replicate it across stores.

SIG helps retailers and brands monitor standards through Retail Audits with actionable reporting.

How Service Innovation Group UK Can Help

At Service Innovation Group UK, we support retailers and brands with consistent in-store execution that drives measurable performance.

Our teams deliver:

• Merchandising and visual merchandising support
• Planogram implementation and compliance checks
• POS placement and promotional execution
• Retail audits, reporting and store standards
• Display installation, refresh and maintenance

For brands needing full control from print to placement, explore POS & Asset Management for end-to-end visibility and logistics support.

You can also view examples of store execution in action via our Case Studies.

Want to improve merchandising compliance or retail display performance? Service Innovation Group UK can help deliver consistent execution that boosts sales and enhances shopper experience.

📩 Contact SIG Europe