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13 Best Visual Merchandising Practices to Drive Sales and Create Exceptional In-Store Experiences
Retail

13 Best Visual Merchandising Practices to Drive Sales and Create Exceptional In-Store Experiences

Discover 13 proven visual merchandising best practices to boost sales, improve shopper experience, and ensure flawless store display execution.

Nethra Ramani Author
Sharjeel Ahmed
CEO - Pazo

Beautiful displays attract attention.
But strategic, data-informed, and well-executed visual merchandising drives conversion, dwell time, and category growth.

Visual merchandising isn’t just about making a store look good — it’s about shaping how shoppers think, feel, and buy. When done right, it influences foot traffic, increases sales per square foot, and enhances brand perception.

Let’s explore the proven best practices that top retailers use — not just to decorate shelves, but to design experiences that sell.

1. Develop a Customer-Centric Merchandising Strategy

Before placing a single product on a shelf, start with one question:
👉 What does my shopper truly want — and how do they move through my store?

The best visual merchandising starts with empathy, not aesthetics.
Use a data-driven hypothesis approach:

Step 1: Form a shopper hypothesis.
Example: “Our customers buy drills for DIY projects.”

Step 2: Validate through customer interaction.
Survey shoppers or talk to them on the floor. You might discover that most drill buyers are tackling repairs, not projects.

Step 3: Rebuild your assortment and messaging around real behavior.
Now, your drill display might include repair kits, nails, and tutorials — not just raw tools.

This process ensures your merchandising aligns with intent, not assumption.
As Fu Fei (Haste Analytics) noted, “A systematized approach to customer interviews and sales tracking goes a long way to improving in-store merchandising.”

Why it matters:
Customer-aligned merchandising increases conversion rate, relevance, and emotional engagement.

2. Make Your Window Display Count

Your store window is your loudest statement — your silent salesperson.

Shoppers decide in three seconds whether to walk in or walk past.

To make that moment count:

  • Pick a strong theme. Seasonal, promotional, or lifestyle — but never generic.
  • Use focal lighting. Bright light on the hero product; diffused tones around.
  • Maintain eye-level storytelling. “Eye level is buy level.”
  • Declutter. Too many elements confuse; one strong story converts.

Example:
A boutique uses a “Winter Warmth” window featuring a single mannequin wrapped in wool, surrounded by floating snowflakes. Clean, emotional, memorable.

As Meaghan Brophy (Fit Small Business) said:

“Window displays need to grab attention while being welcoming and inviting. Use color and storytelling — but avoid clutter.”

Why it matters:
A compelling window display increases foot traffic volume, boosts brand recall, and sets shopper expectations even before entry.

3. Turn Store Associates into Brand Statements

Visual merchandising doesn’t end at shelves — it extends to people.

Your staff are walking displays that can embody your seasonal focus or brand tone.

Chris Guillot, retail consultant and founder of Merchant Method, calls this “mobile merchandising.”

“Your sales team can be used as mobile merchandising statements to help move your products.”

Example:
At a kitchenware store, staff wear the season’s feature aprons or use the new cookware live during demos. It adds context, conversation, and credibility.

Implementation tips:

  • Match staff attire or props to ongoing promotions.
  • Train them to reference displayed products naturally in interactions.
  • Encourage team participation — staff who understand the “why” behind a display become better sellers.

Why it matters:
Customers trust people more than posters. When employees embody the brand, products become relatable and aspirational.

4. Use Informational Signage Strategically

A shopper who’s confused is a shopper who leaves.

Effective signage turns chaos into clarity.

Stan Tan of Selby’s explained it best:

“It’s retail 101 — make the customer’s shopping experience easier.”

Best practices:

  • Keep text short and directional (“New Arrivals →”, “Kidswear on Level 2”).
  • Include benefit-driven language, not just price (“Sleep better with bamboo sheets”).
  • Use hierarchy: big fonts for categories, smaller for descriptions.
  • Align signage colors with your brand palette for consistency.

Example:
A hardware chain like Bunnings uses clean, functional signs that guide customers across massive layouts without confusion — no flashy tech, just clarity and trust.

Why it matters:
Signage improves wayfinding, reduces decision fatigue, and increases conversion rates — especially in large-format stores.

5. Keep Displays Fresh and Dynamic

Even the most creative setups lose impact if they stay too long.

Shoppers stop “seeing” what they’ve seen too often.

To combat this, refresh your merchandising calendar:

  • Window displays: every 2–3 weeks.
  • Feature tables: every month.
  • Category resets: quarterly or seasonally.

Pro tip: Align updates with marketing campaigns, weather patterns, or local events.

As Brophy notes,

“The easiest way to improve merchandising doesn’t cost a thing — just change your displays regularly.”

Example:
A bookstore rotates table themes weekly: “Bestsellers” → “Award Winners” → “Books to Beat Stress.” Regular change keeps repeat visitors engaged.

Why it matters:
Frequent resets increase dwell time and repeat footfall, signaling freshness and innovation.

6. Implement Cross-Merchandising Displays

Cross-merchandising is the art of pairing complementary products to drive impulse buys and increase average transaction value (ATV).

Examples:

  • Swimsuits beside sunscreen.
  • Pasta beside sauces and olive oil.
  • Smartphones beside cases and chargers.

Target is a master here — placing kids’ swim diapers below sunblock shelves, perfectly anticipating shopper needs.

Implementation Tips:

  • Use mini planograms to map pairings.
  • Keep product relationships logical (avoid forced combos).
  • Track SKU uplift after pairing — the data will show what works.

Why it matters:
Cross-merchandising makes shopping intuitive and profitable. It increases both conversion rate and sales per transaction by anticipating the next shopper decision.

7. Use In-Store Tech to Enhance Engagement

Today’s visual merchandising is as much about experience as aesthetics. 

Technology allows stores to merge physical displays with digital storytelling.

Ideas:

  • Tablets or touchscreens with product videos or tutorials.
  • AR mirrors for try-ons (like Sephora or Nike).
  • QR codes linking to reviews or sustainability info.
  • Digital signage that changes promotions in real time.

Sephora’s interactive mirrors and digital testers are textbook examples — shoppers explore without pressure, increasing dwell time and comfort.

Why it matters:
Tech-infused displays increase engagement by 20–30%, and digital signage boosts sales by up to 33% when used strategically.

8. Implement “Try Before You Buy” Experiences

People buy with senses, not logic.
Let them see, touch, taste, or try your products.

Liliana Aranda, founder of Faces by Liliana, swears by this approach:

“I let guests try featured products after treatments. It creates emotional connection — and repeat sales.”

Examples:

  • A skincare store sets up testers for its monthly featured products.
  • A grocery store allows tasting stations for sauces or olive oils.
  • An electronics store creates demo corners for headphones or smart speakers.

Why it matters:
Sensory experiences create ownership before purchase.
Try-before-you-buy setups have been shown to increase conversion by 35–50%, especially for tactile categories.

9. Monitor Category-Wise Sales Performance

Visual merchandising isn’t just art — it’s measurable science.

Tracking sales per category helps identify which displays truly perform.
If your home décor or footwear consistently outperforms, it deserves more display space or feature tables.

Key metrics to monitor:

  • Sales per transaction (SPT) → How much the average shopper spends.
  • Sales per category/department → Which sections drive revenue.
  • Conversion rate → Foot traffic vs. purchases.
  • Sell-through rate → Percentage of inventory sold in a period.

As Meaghan Brophy said,

“If one or two categories are consistently outselling others, feature them more prominently and buy more of them.”

Why it matters:
This ensures your merchandising reflects real demand, not internal bias — leading to smarter assortments and better space ROI.

10. Build Experiential Retail Displays

Modern retail is shifting from product shelves to experience zones.
Your displays should make customers feel, not just see.

Ideas:

  • Life-size product models (like FAO Schwarz’s giant teddy bear).
  • Interactive corners for selfies or demos.
  • Immersive “shop-in-shop” storytelling (e.g., “The Summer Edit”).

Experiential merchandising converts browsing into brand bonding.
As FAO Schwarz demonstrates, children who play with in-store displays often lead their parents directly to checkout.

Why it matters:
Experiential displays increase dwell time, strengthen emotional connection, and elevate perception — turning stores into destinations, not just outlets.

11. Maintain Planogram & Brand Compliance

Even the best display strategy fails without consistent execution.
Across large chains, planogram compliance ensures every shelf looks and performs as intended.

Common challenges:

  • Outdated planogram PDFs.
  • Unread emails or missed go-live timelines.
  • Variation in fixture sizes or store layouts.

Best practices:

  • Digital checklists for task management.
  • Photo proofing for real-time validation.
  • Central dashboards for HQ visibility.
  • Escalation workflows for instant corrective action.

Tools like Pazo streamline this process, ensuring 100% compliance across stores — with photo validation, analytics, and live dashboards.

Why it matters:
Planogram compliance reduces lost sales, improves vendor relationships, and ensures every location meets brand promise.

12. Audit, Analyze, and Improve Continuously

Visual merchandising is never “done.” It’s a living system.

Steps for continuous improvement:

  1. Conduct regular visual audits using mobile apps or image recognition.
  2. Compare “before and after” sales after every layout refresh.
  3. Gather qualitative feedback from staff and shoppers.
  4. Use analytics dashboards to track display impact on revenue.

Pro tip:
Treat merchandising like marketing — A/B test your displays, signage, and lighting to discover what converts best.

Why it matters:
Constant optimization keeps your store environment aligned with shopper behavior and seasonal dynamics.

Conclusion: The Balance Between Art, Science & Execution

Visual merchandising is where creativity meets commerce.
It’s not just about making shelves look beautiful — it’s about making them work beautifully.

Every great display blends three forces:
🎨 Art — emotional storytelling.
📊 Science — shopper psychology and analytics.
⚙️ Execution — on-time, compliant implementation.

Retailers who master this trio turn every square foot into a profit center.

Nethra Ramani Author
ABOUT THE AUTHOR
Sharjeel Ahmed

As someone who has built highly scalable products from the ground up, I've always been drawn to solving challenging problems. But it's the quest for operational excellence that truly lights my fire. The thrill of streamlining processes, optimizing efficiency, and bringing out the best in a business – that's what gets me out of bed in the morning. Whether I'm knee-deep in programming or strategizing solutions, my focus is on creating a ripple effect of excellence that transforms not just businesses, but the industry at large. Ready to join forces and raise the bar for operational excellence? Let's connect and make retail operations and Facilities Management better, together.

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