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What Is Visual Merchandising? Definition, Types, Examples and How To Use It
Retail

What Is Visual Merchandising? Definition, Types, Examples and How To Use It

Discover what visual merchandising is, its display types, proven tips, and common pitfalls in our comprehensive guide—everything you need to elevate retail sales.

Nethra Ramani Author
Sharjeel Ahmed
CEO - Pazo

Customers usually judge a store based on how it looks at first. That’s why visual merchandising is important — it helps make the store more attractive and improves the overall shopping experience. Good visual merchandising makes the store (or website) feel like a true reflection of the brand. In this article, we’ll explain what visual merchandising is, the different types, and how you can make it better.

What is Visual Merchandising?

Visual merchandising means arranging and showing products in a retail store in a way that looks attractive. It helps show off the product’s best features, grab the customer’s attention, make them feel comfortable, and encourage them to buy. Visual merchandising started with physical stores, but now many companies also use these same ideas for online shops.

Effective visual merchandising uses different physical elements to show a brand’s look and style. These include:

  • Color: Different colors create different moods and feelings. Pick a color scheme that fits your company’s image.
  • Lighting: Lights help set the mood in your store and can highlight certain products or areas.
  • Space: How your store is arranged and spaced affects how customers move, what they notice, and where they spend more time.
  • Sound: Background sounds, like calm nature noises or loud rock music, can change the overall feel of your store.
  • Smell: Some smells can create certain emotions, like feeling calm or excited. Scents can also bring back memories or create good feelings—like the smell of pine trees during the holidays.
  • Technology: Tools like digital screens or interactive displays can make shopping more engaging and help customers connect better with your brand.

Benefits of Visual Merchandising

Visual merchandising means arranging products in a way that helps boost sales. Putting time and money into visual merchandising can make the shopping experience better for customers, act as a powerful marketing tool for your business, and help build customer loyalty. But to do visual merchandising well, you’ll need to spend time, put in effort, and invest money—so you must be ready to make that initial commitment.

  • Increased customers – Visual merchandising can help bring in more customers who see and come into your retail store. It should begin outside, where people first notice your store (like signs). If they like what they see and enjoy the shopping experience you create inside, they will be more likely to come back. Also, make sure to understand your customers' needs.
  • Increased sales – Good visual merchandising can clearly and positively affect your retail sales. Showing clear prices, keeping shelves full, using simple displays, and placing bold sale signs can help grow profits while also making the shopping experience better for your customers.
  • Maximising the potential of your retail space – Using creative merchandising can help you make better use of your store space without needing to expand or renovate. The layout should be smooth and guide customers to the key items and displays you want them to notice. When customers see your store is clear and nicely arranged, they will connect that with a good shopping experience, which can make them want to come back.
  • Getting the most value out of products – If some products are hard to sell, smart visual merchandising can help you promote them without lowering their price. You can also place cheaper items in less visible areas so that customers focus more on high-margin products.

Disadvantages of Visual Merchandising

There may be some challenges when you try to bring visual merchandising techniques into your retail store. These include:

  • Changing layout and space – You might need to spend time moving aisles, shelves, display stands, and changing the overall layout of your store’s interior.
  • Increased demands on staff – If your visual merchandising works well, you may have to deal with more customers each day, more sales, and more product deliveries. This could also lead to more customer service tasks, longer working hours, and needing to hire more staff.
  • Expense – Adding new display units, signs, or improving how your store looks can cost a lot. But if you manage and plan your visual marketing well, it can help you make more profit and build stronger customer loyalty.

Types of Visual Merchandising Displays

What is visual merchandising? It is all around us. Customers see it from the moment they walk into a retail store until the moment they leave. Here are some key examples of visual merchandising:

Store Design

The way a store looks inside and how it is arranged can strongly affect what kind of customers it brings in and how those customers decide what to buy. Every small detail matters—like the wall colors and how the products are arranged. For example, furniture stores look very different from grocery stores, and that’s on purpose.

If you are choosing a retail store to sell your products, it’s important to think about the type of customers that store brings in. You should also make sure their visual merchandising style matches your own.

Window Displays

Window displays are one of the most valuable spots for visual merchandising. They are usually the first thing people see when they pass by. This gives you a chance to start promoting your products even before the customer walks into the retail store. That’s why window displays need to be creative and stand out.

Cross Merchandising

Showing complementary products together helps customers decide to buy more. For example, stores often place salsa and tortilla chips next to each other. This makes it more likely that shoppers will buy both, not just one.

Signs and Banners

Signs and banners help customers find their way around the store. You can use them to lead shoppers to your products or to point out special features.

Mannequins

Mannequins are great for showing off clothes and accessories. They come in different looks, sizes, and skin tones to connect with different types of customers. For example, a brand that makes plus-size clothing can show their outfits on a larger-sized mannequin. The kind of mannequin you use—how it looks, where you place it, and how it’s styled—can tell people a lot about your brand.

Product Packaging

Packaging is very important for the success of your visual merchandising. It gives useful information about your product and can affect the customer’s decision to buy. Your packaging should clearly show your brand’s personality and match the look of your other marketing materials. This helps you give customers a clear and consistent message.

Point-of-Purchase Displays

Point-of-purchase (POP) displays are stands or setups placed around the store to show off a certain product or brand. They are placed in busy areas of the store so that more people see the product and may decide to buy it. POP displays are usually specially made in different shapes and styles to highlight one specific item.

Point-of-Sale Displays

Point-of-sale (POS) displays are often mistaken for POP displays, but they are a little different. A POS display is a special stand or setup placed near the checkout counter. This visual merchandising method focuses on customers while they are waiting to pay. POS displays usually show low-cost items that won’t raise the total bill by much. Since shoppers are already buying something, they’re more likely to add these small items to their cart.

Seasonal Displays

New, limited-time products are released every season. Seasonal displays show these items and encourage customers to buy them. They help brands sell more products in a short period.

12 Merchandising Tips That Work in Any Store

1. Change displays monthly

Seasons and holidays don’t last forever, and promotional items sell quickly. So, update your store layout with new arrivals right away.

Keep matching items together. If you ordered products that are meant to be sold as a set, don’t spread them out—doing so weakens their impact. You don’t want their first appearance to lose power or miss the chance for an extra sale.

Have leftover stock? Mix it with new products to give the display a fresh look.

2. Focus on What Customers Want, Not Just What They Need

Shoppers often know what they need when they come in, but your displays should grab their attention with things they want. Avoid showing only the items they already plan to buy.

For example, someone may come in asking for a cheap blender, but they really want the $300 KitchenAid model. Show off the exciting, high-quality product—not just the basic one.

3. Organize Products by Use or Color—Not Just by Price

Sorting by price makes sense in a grocery store. But in a specialty retail shop, it feels lazy. Instead, create a story or theme.

You could set up a tea-time table, a neat home office desk area, or a color mix like black-red-white that makes people stop and look.

 4. Put Attention on the Front of Your Store

Begin with the display area that’s right near the front door. Use it to show off your newest and most expensive products.

Always lead with what’s new and top-quality. Use different heights in your display, make sure everything is clean, and keep the shelves just full enough so people can pick things up without messing up the display.

5. Add a Stuffed Pig to One Window... Yes, Really

Put something surprising in your display—like a stuffed pig in a kitchen setup, or a cowboy boot next to a fancy watch. It’s not about the object itself. It’s about making shoppers stop and think, “What’s going on here?” That quick moment of curiosity makes them interested and more likely to come in.

6. Light Your Products Like It Matters

If people can’t see it, they won’t buy it. Add extra lights. Adjust the ceiling lights. Place your most important products under bright lighting. When something is well-lit, it looks more valuable. Remember—good lighting makes your products stand out.

7. Use Signs That Grab Attention

Put up a few clear, smart signs—even on display shelves. Make sure the signs are short and easy to read so they catch the customer’s eye.

If your shoppers are mostly older people, use bigger letters to help them read easily. Handwritten signs with markers might work for a kid’s lemonade stand, but in a store, they can look unprofessional.

And never put up signs that say DO NOT TOUCH. That’s almost like telling people DO NOT BUY. Displays are meant to be touched—even if they get a little messy.

8. Move Displays, Not the Fixtures

When new products arrive, shift your current displays to different spots on the sales floor. This keeps your store layout fresh and interesting.

After a few weeks, move popular items deeper into the store so customers explore more. Push middle-of-the-store displays toward the front. Try them out in new areas to keep things exciting.

9. Check Your Sales by SKU

Look at your system reports and stock levels every week. If a product starts selling fast, be ready to reorder those top items right away.

If something isn’t selling, try moving the display before giving up on it. Remember, you’re not just setting up products—you’re testing what works.

10. Make Sure Every Item Has a Price Tag

Always put a price tag on every item in your display. Customers don’t like to ask for prices.

No price tag = more confusion = possible lost sale.

11. Involve More Than One Sense

You may have noticed mall stores selling health products that use several oil diffusers at once, like in the picture on the right.

You’re probably already wondering what they smell like—that’s the effect of using more than one sense.

I’ve seen stores use ScentAir to make Tommy Bahama beach clothes sections smell like the ocean, high-end grocery stores give food samples to please the taste buds, and audio stores create special rooms so customers can experience sound clearly.

Add smells with care. Let people taste samples if you sell food. Let them hear what a speaker sounds like, or feel the fabric of a jacket. The more senses you use, the more people will remember the experience.

Just don’t overdo scents. Many shoppers have allergies or personal preferences.

12. Add Movement to Your Display

Movement gets people’s attention. Use a fan to make a dress wave, a turning display stand, or a video that plays on repeat. Movement catches both the eyes and the ears.

You can also look into companies that help retailers use media inside their stores.

10 Steps to Start with Visual Merchandising Guidelines

Visual merchandising is the art of showing products in a way that tells a good story, grabs the customer’s attention, and shows what your brand stands for.

There are many ways to do this. So, we’ve put together a short list of visual merchandising guidelines to help you get started.

1. Understanding the Basics

Before getting into the details, let’s first look at a few important concepts:

  • Store layout: How you set up aisles, shelves, and displays should be planned smartly. It should help guide customers through the store and make sure they see the main products and features.
  • Traffic flow: Knowing how customers walk through your store is very important. Put popular products and offers along the main paths so more people will see them.
  • Signage: Good signs can share useful details about products and deals. They also help show what your brand stands for.

2. Create a Strong Theme

Keeping your displays consistent is important. Choose a theme or idea that shows what your brand stands for and connects with your ideal customer. This theme should be clear in every part of your store—from the window displays to how products are arranged.

For example, if your theme is rustic, use wooden shelves and natural, earthy colors. If your store sells luxury fashion, go for a clean and simple look with modern designs.

3. Window Displays

Your store’s front window is the first chance to catch people’s attention. A great window display should tell a story, highlight your best products, and make people curious.

Use lighting, props, and signs that match your theme. Change the window display often so it stays fresh and keeps shoppers interested.

4. Presentation of Products

Set up your products in groups that make sense to your customers. Put related items together—like full outfits or matching accessories. Think about using in-store technology too. It helps shoppers find what they need and also makes it more likely they’ll buy extra items.

5. Balance and Symmetry

Keeping things visually balanced is important for a smooth shopping experience. You can use symmetry by having the same or similar displays on both sides of the store’s center. You can also try asymmetrical balance to make the display more interesting, but be careful—it should not make things look messy or crowded.

6. Colors and Lighting

Colors and lighting are very important in setting the mood and feel of your store. Bright and well-lit spaces usually feel more welcoming and pleasant. Choose a set of colors that match your brand’s look and the kind of feelings you want your customers to have.

For example, using warm colors together can make your store feel cozy and friendly. On the other hand, cool colors can give a calm and stylish vibe. Using monochromatic colors (different shades of one color) can make your store look interesting and works well when showing off seasonal themes.

7. Planogramming

A planogram is a picture or diagram that shows how products should be arranged in your store. It acts like a blueprint for where to place items, based on things like how popular the products are and how customers move around the store. Making and using a planogram helps keep your visual merchandising strategy steady and aligned with your store’s layout.

8. Use Props and Decor

Props and decor items can bring more life and personality to your store displays. They should match your overall theme and help make the products look more attractive. For example, a surf or swim shop might decorate with surfboards and beach items, while a bookstore might use cozy seating areas to create a nice reading spot.

9. Keep it fresh

It’s very important to update your displays often to keep customers interested. Change how things are set up, update signs, and add new decorations to match the seasons, holidays, or special events. Doing this makes people want to come back and makes your store feel new and exciting.

10. Monitor and adapt

Finally, watch how your customers react to your visual merchandising. Look at sales numbers, listen to customer feedback, and observe how people behave in the store. Use this information to keep improving your plan. What works well in one store might not work in another, so it’s important to adjust your approach to fit the needs of your own customers.

Should you hire a visual merchandiser?

Getting a visual merchandiser for your retail store can be a smart investment. They can make your store look better, help you use your space in a smarter way, and boost your sales.
But, hiring one can be costly. According to ZipRecruiter, the average freelance visual merchandiser earns $21.59 per hour, but the cost can go up to $100 per hour or even more.

Use these questions to decide if hiring a visual merchandiser is right for you:

  • Are your sales not growing or going down?
    If yes, a visual merchandiser could bring in new ideas to attract customers and improve sales.
  • Does your store look old-fashioned or messy?
    A new and professional design might help bring in more modern shoppers.
  • Are you using your space well, or are some areas being wasted?
    Think about whether your store layout makes the best use of space.
  • Is your brand seen as high-end or trendy?
    Stores that want to look premium or stylish can gain a lot from professional visual merchandising.
  • Do you or your team have the right skills and creativity to do visual merchandising properly?
    Be honest about your team’s ability to design and maintain good displays.
  • Can you afford to pay for a visual merchandiser without cutting back on other important parts of your business?
    Make sure hiring help doesn’t hurt your overall budget.
  • Is your store and product range too big to manage all the visual merchandising yourself?
    If managing everything internally is too much, outside help could be a good idea.

Evaluate these points to decide if hiring a visual merchandiser is needed. Look at the benefits and the costs. Make sure your decision matches your store’s overall goals and plan.

Ready to  Perfect Your Visual Merchandising Every Day?

You've seen how powerful visual merchandising can be — from designing eye-catching window displays to setting up products in ways that boost sales. But to keep these high standards across your store, you need regular checks and a proper system.

Pazo’s digital checklist platform helps store teams like yours maintain great visual standards every single day. Whether it’s daily display checks or changing setups for a new season, our smart checklists keep your team on track and your store always looking its best.

Book a Free Demo Today to see how top retailers use Pazo to keep visual standards consistent, track display performance, and make sure every customer enters a store that’s well-arranged and ready to impress.

FAQ

What is the potential salary for a visual merchandiser?

Experienced visual merchandisers who work with large retail companies or luxury brands can earn more than $100,000 per year. The salary depends on factors like where you work, how much experience you have, and how big the company is or what industry it’s in.

How can someone get started in visual merchandising?

If you want to start a career in visual merchandising, think about getting a degree in areas such as retail management, fashion merchandising, or design. It's also important to get hands-on experience by doing internships or working as a store associate.

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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