7 Elements of Visual Merchandising Displays

In a perfect world, there are 7 key parts of visual merchandising displays that should always be considered when planning. These are color, lighting, landscaping, space, signage, theme and storytelling. Each of these plays an important role in making the display effective and helping you get the best return on your investment.

As online shopping grows and price competition increases, many retailers are finding it hard to attract and keep customers in their physical stores. In the U.S., 22% of department stores have closed or said they will close since 2018. This includes well-known brands like Sears, Nordstrom, Macy's, and JCPenney. One way to boost sales is to invest in visual merchandising, using eye-catching window displays and smart in-store designs to motivate customers to buy.

What is Visual Merchandising?

Visual merchandising is the skill of making a product or store look more attractive. While window displays are a big part of it, visual merchandising also includes how shelves are arranged, themed displays, interactive setups, window decorations, and displays inside the store. Simply put, it's a way of using visuals to communicate with your customers—whether they are just walking by or already inside the store.

Visual merchandising is very effective. Most people make their buying decisions while they’re in the store. It also leads to impulse buys when something catches a shopper’s eye. For example, IKEA uses full room setups to show how products can look at home, helping customers picture them in their own spaces.

Even though visual merchandising is mainly about attracting people to physical stores, it also uses science. It combines design elements like lighting, how furniture is placed, colors, floor layouts, patterns, and promotional signs. All of this helps retailers understand customer behavior and influence what products they see and how they feel about them.

A Brief History of Visual Merchandising

In the past, visual merchandising was not something retailers focused on. Their main goal was just to sell products. But a French retailer named Aristide Boucicaut had a new idea—he imagined a store filled with all kinds of products displayed in a way that allowed customers to walk around freely, like being in "a town within a town." He brought this idea to life in 1852 by opening the world’s first department store called Le Bon Marché. By the late 1800s, well-known stores like Macy's, Bloomingdale's, and Marshall Fields had started in the U.S.

The ability to mass-produce glass starting in the 1840s helped department stores grow. With cheaper glass, stores could build large front windows to show off their products. Today, visual merchandising has become a part of marketing. Retailers use it to make the shopping experience better. New trends like brand activations, pop-up shops, mannequins with personality, and digital signs are now shaping how stores boost their sales.

Why Visual Styling and Merchandising is important in Retail

Visual styling helps make your retail store look more attractive and brings more people inside. Here are some important benefits of using this method:

1. Increase Sales

Showing products in an eye-catching and interesting way makes customers feel like buying them.

Think about visiting a clothing store where everything is neatly arranged — collections are grouped so you can mix and match to create full outfits. The store uses displays and mannequins with special color themes and designs that really stand out. You can easily imagine yourself wearing those outfits. So even if you just wanted to buy trousers, you might also buy a shirt, jacket, and shoes because they all look great together. In this way, visual merchandising acts like retail bait — it encourages people to buy things based on how they feel.

The secret to catching customer interest is to create a store that feels warm and inviting. This could mean using bold colors, stylish looks, and a touch of glamor. For example, sale boards, promotional signs, and appealing product displays can all help increase your sales — and that’s the main goal of any business plan.

2. A Visual Merchandising Display Can Bring in More Foot Traffic

If you want to attract more customers to your retail store, you can use eye-catching signs and creative visual merchandising displays in your windows to spark shoppers' interest. The buying journey doesn’t start when someone walks into your store — it begins when they decide to come inside. That decision is often made while looking at your window displays.

For example, during Christmas, stores often use props and background setups that reflect the festive mood. You can create window scenes that feel real and help shoppers imagine how your products would look in their lives. This approach makes your store more inviting and can bring more people in.

3. Designing a Delightful Customer Experience

Visual merchandising helps retailers shift their focus from just making a sale to creating a great experience for the customer. The goal is to make your store feel welcoming and enjoyable as soon as someone walks in.

To do this, you can use product displays, immersive experiences, digital signage, featured product areas, props, and well-lit displays to grab attention and make shopping fun. Visual merchandising helps customers explore your products in a way that feels exciting and leaves them with a positive and memorable experience.

4. Encourage Brand Loyalty

Retailers can use visual merchandising to show their unique brand message to customers. This is like storytelling, where you shape how people see your brand.

For example, Nike is famous for its line "Just Do It," and its stores reflect that message through mannequin displays, product setups, and decorative walls that match the brand’s style.

Visual merchandising helps you share your brand's identity and personality with shoppers, which can lead to stronger brand loyalty over time.

Elements of Visual Merchandising

Whether you want to design better-looking retail displays for customers or are just starting with visual merchandising, here are the most important parts of the concept you should know.

1. Color

Color is the most important part of any in-store visual display. It helps trigger emotions and set the right mood. Retailers use colors to create a welcoming environment and increase sales. For example, bright colors like orange and red are used to grab attention and excite shoppers. On the other hand, luxury brands may use dull or muted colors to give a feeling of elegance. You can also use colors to highlight certain products—for instance, putting a neutral-colored item in front of a bold background makes it stand out.

Best Tips:

• Avoid too many contrasting colors – Don’t let your displays feel too chaotic. Use dark and light tones smartly to create beautiful contrasts.
• Think about your company and industry – Some colors are tied closely to certain fields. For example, green is often linked to eco-friendly products or the environment.
• Use a base color for your brand – Pick one strong color to feature across all your marketing. Like how Coca-Cola always uses red.

Keep cultural meanings in mind – Colors can mean different things in different cultures. Red means prosperity in China, but love in the U.S.

2. Landscaping

Landscaping is an important method to catch shoppers' attention. It means raising or highlighting certain products as ‘prime offerings’ so they stand out more. Landscaping gives retailers the chance to be creative by arranging items in three dimensions: side-to-side (lateral), front-to-back (longitudinal), and up-and-down (vertical).

You can use asymmetrical layouts to create movement and a smooth flow between products. On the other hand, symmetrical layouts are simpler and help customers see everything your store has to offer more easily.

3. Light

Lighting and illumination bring your store's colors to life and help highlight product features. For example, you can use spotlights to shine on key product details and help boost sales.

You can try different types of lighting to create the mood or feel you want in your store. To highlight new arrivals or items on sale, accent lights work well. These are especially useful in retail stores selling luxury goods.

LED lights are now popular because they’re softer than harsh fluorescent lights. You can place LEDs on display racks, in changing rooms, or behind shelves as task lights. When using lighting in visual merchandising, make sure to check for glare, contrast, and uniform lighting, especially for ADA-compliant signage.

Best Tips:

• Layer your lights. Keep general lighting soft so that accent lights stand out.
• Use mirrors to brighten up the space and reflect more light. Mirrors can look stylish and also serve a purpose.
• Install a light control system to change lighting styles for different moods.

Backlight your brand message to leave a lasting impression on customers.

4. Space

How you arrange products in your retail space affects how your store performs. Space is a key part of visual merchandising because it helps you connect or separate items. When planning your store layout, think about using both positive and negative space, or read more about the benefits of space management to use your space better.

• Positive space is where a product is placed.
• Negative space is the open area around the product.

For example, you can use different colors in the product and the space around it to create an eye-catching display. If used well, negative space gives your products room to stand out and look more appealing.

One of the harder parts of retail visual merchandising is figuring out how to use empty space. A good example is the space between products and the ceiling — this area often goes unused but can enhance the customer experience. You can use it for signs or other visual displays to highlight your product’s value.

5. Signage

Imagine you go into a store, but all the salespeople are busy, and you can’t find what you want to buy. You’ll probably leave with a bad impression of the customer service. In simple terms, making customers wait often leads to lost sales and unhappy customers. To avoid this, you can use store signage to guide shoppers to the right sections or even show wait times to help manage their expectations.

If your visual merchandising plan doesn’t include digital signage, you’re missing a powerful way to engage shoppers. People are used to seeing screens, so you can grab their attention by placing digital screens throughout your retail store.

What makes digital signage powerful is that visual content is easier to remember. By using images in your content, people are more likely to remember your brand and come back again. You can also place interactive digital signage in window displays, inside the store, and near checkout areas to promote your brand and products.

Best Tips:

• Create customer-focused content, and avoid long or confusing messages. Simple messages about product use and benefits work best.
• Reuse top-performing social media content.
• Use clear, high-quality visuals to attract and entertain shoppers.
• Let your digital signage show your brand’s message, culture, and values.

6. Storytelling

Retailers can use the power of storytelling to create positive emotions in their customers. In simple terms, people love stories. In a time when attention spans are short, good storytelling has become an important part of marketing.

Strong storytelling should start with a clear and unique brand message. Ask yourself: How will your products improve your customers' lives? What makes your products different from others in the market? When customers enter your store, they should feel like they’re stepping into a sensory experience that excites all their senses.

Everything in your store should work together to spark the imagination—from the music, scents, and lighting to the creative window displays, signage, and store layout. Your store should feel like a place where customers can explore, learn about your products, and discover specially selected items that feel personal and inspiring.

7. Theme

Having a clear and consistent theme across your retail store helps reinforce your brand in customers' minds. It makes your store look more organized and appealing.

Your theme should show in everything — from lighting, decor, and music to staff uniforms and displays. For example, a beachwear store can use surfboards and play tropical music, while a luxury store might opt for dim lights and formal settings.

When all elements align, it creates a memorable shopping experience and builds customer trust.

Best Tips:

• Pick a theme that reflects your brand identity.
• Keep it consistent across displays, signage, and staff appearance.
• Use the theme to connect emotionally with your target audience.

Final Thoughts on Retail Visual Merchandising Design

Visuals play a big role in how people make decisions, and you can use tools like storytelling, signage, color, landscaping, and lighting to boost sales through effective visual retail merchandising design.

In conclusion, the most important part of visual merchandising is having a clear understanding of your brand. Once that is in place, you can design both the inside and outside of your store in a way that creates a memorable shopping experience for your customers.