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The Merchandise
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‘Placement of Merchandise’ is the art of displaying merchandise in an organised manner to offer the right quantity of the right merchandise in the right place at the right time. The concept of S-T-P (Segmentation, Targeting, and Positioning) is implemented in this process.
The objective behind placement of merchandise inside the store is to allocate enough space for all products, and to make sure that the products are grouped together as per the assortment plan and aligned in the right way so as to make it visible to the customer. Proper, planned placement of merchandise allow enough aisle space for customers, and shelving space, as well as stacking space, for merchandise. This helps in easily identifying slow sellers and fast sellers, missing goods with respect to size or colour or pattern. It also helps to avoid damages to the goods, and helps customers to be able to browse, find, and pick the required merchandise easily. The format and layout of the store plays a significant role when it comes to placement of merchandise. The placement varies from one type of format to another. For a value-format, the placement of the merchandise is based on volumes, while for a lifestyle-store format, the placement is more based on merchandise assortments.
Furthermore, the placement of the merchandise also varies based on the verticals i.e. for apparel, general merchandise and fast-moving consumer goods products. Within verticals, it also varies, based on the type of merchandise.
Let us suppose all the products available at the store are stocked at one place only. Would such a display impress the customers? The answer is NO. Presentation of products is essential. As a solution to the above problem, the retailers came out with the concept of category management.
The concept of segregating similar products into separate groups is called category management. The complete range of merchandise available at the retail store is divided into separate product categories consisting of related products.
Categories in a retail store refer to the various groups which consist of products belonging to a similar family. The retailer smartly displays all the related products together as distinct categories for his as well as the end-user’s convenience.
Example:
Toothpaste, toothbrush, mouthwash, tongue cleaner, soap, shampoo, body wash, cosmetics, etc. can be displayed together under a single category called the personal care section.
Vegetables, fruits, tinned food, juice, meat, and dairy products form a single category.
Certain retail stores also classify their merchandise into women, men as well as kid’s categories.
Department stores also have separate categories like:
Apparel, footwear, jewellery, electronic appliances, mobiles, watches, home furnishings, household appliances, and so on.