Why is visual merchandising important in retail?

First impressions are crucial, especially when displaying products and branding in retail spaces, and incorporating the right visual merchandising in retail environments can make or break your sales. Without captivating visuals, no matter how much a customer wants or needs your products, a more engaging spectacle from a competitor will see them head away from your retail space.
As a UK and global leading design and production agency specialising in visual merchandising production, B_RD is here to provide the answer to the question: ‘why is visual merchandising important in retail?’

What is visual merchandising?
Definition and purpose
Visual merchandising is a multi-functional presentation of products in retail spaces to attract customers, enhance shopping experience and drive sales for businesses. These goals are reached by incorporating displays in all areas of a store layout, as well as using lighting, colours and signage to showcase items, products and services effectively, all aligned with brand identity.
The elements of visual merchandising
How is visual merchandising displayed? Key elements include window displays, product placement, point-of-sale (POS) displays and themed arrangements highlighting promotions, new products and retail brands. Some of the best retail visual merchandising displays make use of almost every area of a retail space, with the goal to create an inviting atmosphere that captures attention and guides customers on their purchases, making it a vital aspect of retail success.
The importance of visual merchandising in retail
Attracting and engaging customers
The goal of visual merchandising is to first attract customers and then engage them to explore products and make a purchase. The best way to engage people outside your shop is with window displays showcasing seasonal trends, the latest, most in-demand products, either through POS displays, dressing mannequins or printed graphics.
Combining these window displays with bold colours, creative arrangements and thematic elements will help steer customers into the store to investigate further.
Enhancing the customer experience
Once engaged and inside a retail space, the customer will want to be able to find what they’re looking for quickly and easily. Visual marketing can enhance the customer experience in this way by strategically placing different elements. Combining your existing store layout with visual marketing elements creates a natural sense of flow for the customer, guiding them towards their desired product but also enticing them to check out other products they might want or need, leading to impulse buys for high-costing items.
Boosting sales and revenue
Speaking of impulse purchases, effective visual merchandising drives sales and revenue by showcasing products in a way that highlights their value. As well as creating stunning visuals, strategic placement such as end-of-aisle displays, eye-level arrangements and cross-merchandising encourages customers to consider new items. These techniques enhance sales and maximises retail business’ profitability.
Benefits of effective visual merchandising
Strengthening brand identity
Whether you need visual merchandising for an established big-brand retail store or for an independent business, brand identity must be consistently strong, helping to build and sustain a positive reputation among the customer base.
Visual elements often change due to seasonal marketing strategies, but certain elements should stay consistent to accentuate and establish your brand. This can be through colours, fonts or specific images that help customers remember why they chose your brand to begin with. Through effective visual merchandising, even the smallest of consistencies can enhance brand loyalty and awareness, leading to repeat sales and profit.
Promoting key products and offers
The layout of a retail space plays a significant role in where to position and promote key products and offers. High-margin, or promotional products must be combined with captivating displays in key areas. A new product might be displayed in the front windows but not found in store until near the end of the shopping journey. Interior visual merchandising displays to promote key products can include signage, POS displays, assortment presentations, item exhibitions and more, allowing retailers various ways to successfully promote offers and items.
Increased customer loyalty
Memorable store environments encourage customers to return. Think about your favourite retail store, whether a high-street clothes outlet or a supermarket; it’s probably your favourite for several reasons such as a familiar, well-considered layout, and visual merchandising that both draws your attention and makes you aware of the existing products you regularly purchase as well as new ones to discover. For new customers, retailers using innovative strategies foster stronger emotional connections with customers, leading to repeat visits and long-term loyalty.

Best practices for visual merchandising
Now you know why visual merchandising is important for retail sectors and the benefits, how do you go about creating successful marketing solutions?
Start with a plan
Planning is the first step towards an innovative, memorable and successful visual merchandising strategy. The best place to start is to understand your target audience and aligning your strategies with their preferences. It doesn’t make a difference if this is your first or hundredth marketing plan, best practices involve identifying focal points, setting goals for product placement and considering the customer’s journey through the store.
Focus on storytelling
A customer might know what a product is, but why should they buy it? Storytelling though visual merchandising builds emotional connections with customers. Thematic displays are ideal to align a story with your brand or season, such as Christmas and winter wonderland themes during the winter holiday season or mannequins dressed head to toe in summer gear against tropical backdrops. They helps the customer envision themselves wearing these items on holiday, influencing them to make a purchase.
Incorporate technology
We live in an age of highly accessible technology that can be utilised for creative marketing and visual merchandising. Digital signs and interactive displays offer a dynamic way to showcase products and engage customers. Videos displayed in the front windows, for example, can enhance other displays and support any messages, promotions or items you’re looking to promote. Technology is also simply a great tool to use to help direct customers to specific POS displays and sections of the store, helping to guide and inform.
Common mistakes to avoid in visual merchandising
Overcrowding displays
Ever heard the phrase ‘too many cooks in the kitchen’? This saying can be translated over to visual merchandising. Overcrowding displays, whether in your front windows, floor plan, signage on the pavements and overwhelming customers with too much will lead to confusion on what specific products you want them to buy. You wouldn’t want key information on an offer to be hidden between a collage of graphics that don’t effectively contrast with the font. Less is often more when it comes to effective merchandising.
Ignoring seasonal trends
Your store will look outdated and unappealing if you don’t update displays and layouts in line with the seasons. Visual merchandising from Christmas, with spectacles of Santa and his elves isn’t going to look good when you need to promote a new Spring sale. Fresh, timely arrangements aligned with the current season or theme keep customers engaged.
Lack of cohesion
Your brand should have an overarching theme that is consistent across all merchandising and displays. Inconsistent visual themes can confuse customers and weaken brand perception. So, whether a colour scheme or signage, aim to create a seamless, cohesive brand that supports a professional shopping environment.
Visual merchandising with B_RD
A cornerstone of successful retail businesses, visual merchandising offers plenty of benefits including increased sales, enhanced customer experience and strengthened brand loyalty. Stunning, visually engaging displays will draw the attention of new and existing customers and showcasing products effectively through different means keeps them engaged and buying more.
To maximise the impact of visual merchandising, start with a thorough plan and incorporate engaging storytelling paired with innovative technology. B_ RD specialises in visual merchandising and has performed turnkey services for a wide range of businesses in the retail sector and beyond. Get in touch to discover how we can help.

