Is merchandising dead in 2024?

The bag with logo that we're used to seeing in physical stores or coming across in the form of a tote bag on the street? These elements, once symbols of successful merchandising, seem to be losing their luster in a world increasingly dominated by online commerce.

In 2024, the retail industry is undergoing a radical transformation, with new technologies, changing consumer expectations and the rise of e-commerce overturning established practices. Is merchandising, once an essential pillar of store success, becoming obsolete?

To understand this change, it is essential to look back at the evolution of the merchandising over the years. In the past, it was all about the art of attractively displaying products to maximize in-store sales. Carefully arranged display cases, well-ordered shelves and bags with distinctive logos were retailers' weapons of choice for capture consumers' attention. However, the digital age has brought its share of challenges, redefining what works and what doesn't in the retail world.

Today, faced with the rise of online shopping, the emergence of new technologies such as artificial intelligence and augmented reality, and changes in purchasing behavior, a crucial question arises: is merchandising dead in 2024? ? This article explores this question in depth.

We'll start by looking back at how merchandising has evolved over time, and then examine the challenges it faces in 2024. We'll also look at the signs of decline in traditional merchandising, before concluding on a more optimistic note, examining where it remains relevant and how it might reinvent itself for the future.

What is merchandising and what does it involve?

Defining merchandising

The merchandising is a term frequently used in the retail world, but not always well understood. Simply put, merchandising refers to all the techniques and strategies used by retailers to present products and entice customers to buy. It's a discipline that encompasses a wide range of activities, from window dressing to shelf management, signage and in-store promotions.

Merchandising isn't just about looks. It also encompasses space management and thesales optimization. The aim is to maximize point-of-sale profitability by presenting products in such a way that they are easily accessible, attractive and logically organized for the consumer. This includes the strategic placement of products, and the use of lighting, colors and materials to attract the eye and influence buying behavior.

Merchandising objectives

Merchandising has several key objectives, all focused on optimizing the customer experience and increasing sales. Here are the main objectives of merchandising:

• Attracting attention Merchandising aims to capture customers' attention as soon as they enter the store. Attractive window displays, colorful signage and well-placed promotions play a crucial role here.
• Consumer guidance Once the customer's attention has been captured, merchandising must guide the shopping journey through the store. This includes the strategic placement of high-margin products or promotional items in high-traffic areas.
• Making purchasing easier Merchandising makes the act of buying as simple as possible by placing products intuitively. The most popular or necessary products should be easily accessible, while sales accessories can be placed nearby to encourage impulse buying.
• Promoting the brand Good merchandising reflects the brand's image and strengthens its market position. Colors, materials and product layout must be consistent with the brand's identity.
• Maximize sales The ultimate goal of merchandising is to maximize sales by increasing product visibility, stimulating impulse buying, and optimizing the use of sales space.

The different types of merchandising

Merchandising can be classified into several categories, each with a specific role in a retailer's overall sales strategy. Here's an overview of the main types of merchandising:

Merchandising type	Description	Examples
Visual Merchandising	Techniques used to make products visually appealing to customers.	Window layout, lighting, colors, signage.
Management Merchandising	Optimization of sales space to maximize efficiency and profitability.	Planograms, shelf management, product rotation.
Promotional Merchandising	Use promotions and advertising to attract customers and boost sales.	Promotional posters, displays, special offers.
Range Merchandising	Organization of products into logical categories for easy searching and purchasing.	Group products by type, brand or use.
Sensory Merchandising	Techniques designed to stimulate customers' senses to enhance the shopping experience.	In-store music, scents and tastings.

The importance of merchandising in retailing

The merchandising is a fundamental element of success in the retail business. Good merchandising can turn a store visit into a pleasant and productive experience for the customer, while increasing sales for the retailer. In an increasingly competitive environment, where consumers have easy access to a multitude of online and offline options, merchandising is becoming a key differentiator.

Retailers who invest in merchandising benefit from a better visibility of their products increased loyalty customers, and a improved sales performance. By creating a well-thought-out sales environment that meets customers' needs and desires, retailers can not only attract more customers to their stores, but also encourage them to return.

Understanding merchandising

In short, merchandising is much more than simply arranging products. It's a strategic discipline that touches on every aspect of the customer experience. From visual merchandising, promotionalor sensoryEach technique is designed to maximize consumer impact and optimize sales. In a world of rapidly changing consumer expectations, merchandising remains an essential tool for retailers who want to stand out and succeed over the long term.

The evolution of merchandising over time

The origins and rise of merchandising

The merchandising is rooted in the earliest forms of commerce, where merchants sought to maximize the appeal of their products by strategically arranging them to capture customers' attention. Over the centuries, these practices were refined, giving rise to the traditional merchandisingThis discipline really took off at the beginning of the 20th century, with the rise of department stores and distribution chains.

The merchandising fundamentals have gradually been established around a few key axes: the visualwhich consists in making products visually attractive; the presentationwhich concerns the arrangement of products in the sales area; and thelayoutwhich aims to optimize available space to maximize sales. These principles served as the foundation for the development of retailing as we know it today.

To find out more about the history of merchandising, take a look at this article detailed article on the evolution of merchandising.

The golden age of physical merchandising

Between 1980 and 2010, merchandising experienced what we might call its "golden age". golden age. During this period, physical stores were at the heart of retailing, and merchandising played a crucial role in retailers' strategy. The logo bagsCarefully designed window displays and attractive product presentations were essential to attract customers to the store and encourage them to buy.

Numerous merchandising strategies iconic brands have emerged over the decades, making their mark on retail history. Innovative visual campaigns, strategic product presentations and meticulous attention to detail have enabled retail chains to stand out in a competitive market.

To explore concrete examples of successful merchandising strategies, this reference article on the subject offers an overview of best practices.

The impact of digitalization on merchandising

The arrival of e-commerce has profoundly changed the world of merchandising. Consumers, who increasingly prefer to buy online, have changed their purchasing habits, forcing retailers to rethink their strategies. In this new context, physical merchandising has had to evolve, adapt, or risk becoming obsolete.

This transformation has resulted in the increasing integration of digital into merchandising strategies. Retailers have begun to use digital tools to complement and reinforce their physical merchandising efforts, integrating technologies such asartificial intelligence and augmented reality to create more immersive, personalized shopping experiences.

For a better understanding of how digitalization has transformed merchandising, take a look at this article. article on the impact of digital in retail.

The new challenges facing merchandising in 2024

The role of e-commerce in transforming merchandising

The rise ofe-commerce has been one of the most decisive factors in the transformation of merchandising in recent years. With the exponential increase in online purchases, the role of physical points of sale has been transformed. While physical stores were once the main meeting point between products and consumers, e-commerce has redefined customer expectations, driving them to seek more fluid, personalized shopping experiences.

This mutation has significant repercussions on merchandising. Strategies that worked well in a physical setting now need to be rethought for a digitalized world. However, far from rendering physical merchandising obsolete, e-commerce has instead encouraged a complementary relationship between the two. Now, retailers are looking to create a coherent experience that combines the best of both worlds, by integrating elements of both. digital merchandising in their physical stores to boost customer engagement.

To find out more, read this article article on the impact of e-commerce on physical retailing.

The impact of new technologies on merchandising

The new technologies are playing an increasingly central role in modern merchandising. The introduction ofartificial intelligence (AI) and augmented reality technologies enables retailers to create more immersive and interactive shopping experiences. For example, AI is used to analyze shopping behavior and propose personalized products to customers, while augmented reality enables a product to be visualized in a real environment before purchase.

These innovations are not limited to the customer experience. They are also transforming the way retailers manage their merchandising strategy. The use of data and predictive analytics enables us to better understand market trends and optimize product layout to maximize sales. Using sophisticated algorithms, companies can anticipate customer needs and adjust their offer in real time, giving them a considerable competitive edge.

To find out more about integrating new technologies into merchandising, this article on AI in retail is a precious resource.

Consumer expectations in 2024

In 2024, the consumer behavior have changed radically compared to previous decades. Today's customers are more demanding, seeking not only quality products, but also a memorable shopping experience. The importance ofuser experience (UX) has become paramount, prompting retailers to rethink the way they interact with their customers.

The personalization is at the heart of these new expectations. Our website HelloPrint.fr understands this: consumers expect product recommendations tailored to their tastes and needs, an approach that requires an in-depth understanding of individual preferences thanks to data analysis.

The challenge for retailers is therefore to create a shopping experience that is not only effective, but also deeply personalized, while remaining authentic and true to the brand's identity.

To explore the new expectations of consumers and the importance of the user experience, this article on the evolution of purchasing behavior offers relevant insights.

Signs of the death of traditional merchandising

The declining importance of physical outlets

The declining importance of physical outlets is one of the most striking signs of change in the retail industry. In recent years store closures are multiplying, and footfall in the remaining stores is declining. According to recent statistics, the number of store closures has reached record levels, while many once-thriving shopping centers are seeing their vacancy rates climb. This trend is largely attributed to the rise of e-commerce, which has changed the way consumers shop.

Faced with this reality, some brands have decided to rely less on the traditional merchandising in-store. They are adopting alternative strategies, such as reducing the number of their physical points of sale or transforming their stores into showrooms where customers can discover products before purchasing them online. This approach reduces operating costs while continuing to deliver a tangible experience to consumers.

To find out more about store closure figures and the evolution of physical retailing, this article on the evolution of points of sale provides detailed insights.

The rise of D2C (Direct-to-Consumer)

L'rise of D2C (Direct-to-Consumer) represents another major challenge for traditional merchandising. More and more brands are opting to dispense with distributors and sell directly to their customers via their own channels, mainly online. This strategy enables companies to fully control the customer experience, from product to delivery, while increasing their profit margins.

The D2C is profoundly changing the rules of merchandising. Without the need to create complex product presentations in physical stores, brands are focusing on optimizing their online presence and on creating a fluid, personalized shopping experience. Investments that would have been spent on in-store merchandising are now redirected to digital marketing and improving user interfaces on e-commerce sites.

To explore how D2C is revolutionizing the retail business, this article on the D2C model offers a complete analysis.

The rise of omnichannel commerce

With the emergence of omnichannel commerceThe idea of purely physical or purely digital merchandising is increasingly outdated. The integration of physical and digital channels enables brands to create a more coherent and fluid customer experience, where every touchpoint, whether online or offline, contributes to the same overall strategy.

This rise in omnichannel sales signals the end of the isolated merchandising. Now, product presentation strategies must be designed to be effective both in-store and online, with continuity between the two. Brands that make this transition successfully create a unified experience that enhances customer engagement, regardless of the channel used.

There are many examples of brands that have successfully made this transition, and their success is based on a perfect mastery of omnichannel integration. For concrete examples, see this article on omnichannel retail strategies explores how some companies have taken advantage of this trend to stand out from the crowd.

Is merchandising really dead?

Areas where merchandising is still relevant

Despite the challenges it faces, the merchandising is not completely dead. It remains particularly relevant in certain contexts, such as pop-up stores and events. These temporary spaces offer brands the opportunity to create unique and memorable experiences for their customers. Merchandising plays a crucial role in transforming these spaces into immersive environments that attract attention, generate buzz and encourage direct interaction with products.

What's more, in certain specific sectors such as luxury and cosmeticsmerchandising remains of paramount importance. These industries rely heavily onbrand image and the customer experience, two elements where physical merchandising can make all the difference. From carefully designed window displays to sophisticated product presentations, these sectors continue to invest in merchandising strategies that value exclusivity and aesthetics.

To find out more about the importance of merchandising in these sectors, this article on luxury merchandising offers some interesting insights.

Reinventing merchandising for the future

Faced with market transformations, the merchandising reinvents itself. From innovative strategies have emerged in recent years, enabling brands to continue to effectively attract and engage their customers. Among these strategies, the integration of digital in physical spaces is one of the most promising. For example, some stores use interactive screens to enrich the shopping experience, while others integrate augmented reality applications to enable customers to visualize products in different contexts.

These new approaches aim to combine the best of the physical and digital worlds to create a customer experience more fluid and engaging. The aim is to make the purchasing process not only convenient, but also captivating, by using technology to enhance product appeal and personalize customer interaction.

To discover examples of innovative strategies, this article on new merchandising trends offers an overview of recent successes.

Merchandising as a lever of engagement

The merchandising remains a powerful lever of engagement when well executed. It can still captivate and build loyalty customers by creating memorable experiences that resonate with their expectations and emotions. Today, consumers are looking for authentic interactions with brands, and merchandising can play a key role in this dynamic.

The emerging trends in 2024 show that merchandising is evolving to adapt to new consumer demands. The emphasis is on personalization, the integration of interactive technologies, and the creation of spaces that encourage exploration and discovery. These elements enable brands to stand out in a competitive landscape by offering unique experiences that go beyond simple product presentation.

To find out more about how merchandising can still captivate consumers, this article on new approaches to merchandising is recommended reading.

Conclusion

Summary of key points

In the course of this article, we have explored the profound changes that have turned the world of merchandising in 2024. The boom ine-commerce has redefined the role of physical outlets, forcing retailers to rethink their strategies. Although there are signs of a decline in traditional merchandising, particularly with the rise of the D2C and the growing integration of digital technologies, merchandising is by no means dead. On the contrary, it has evolved to meet the new challenges and expectations of consumers.

So.., is merchandising really dead? ?

Not quite. Although traditional practices are in decline, merchandising continues to play a crucial role, particularly in specific sectors such as luxury and pop-up stores. What's more, the reinventing merchandising through the integration of digital and the focus on the customer experience shows that this discipline is capable of transforming itself to remain relevant. Merchandising evolves, adapts, and continues to be a powerful lever to captivate and retain consumers.

Outlook on the future of merchandising in the coming years

In future, the merchandising will continue to evolve in response to technological innovations and changes in consumer behavior. Retailers who know how to combine physical and digital experience that will succeed in standing out in an increasingly competitive landscape. The importance of personalization and theuser experience will continue to grow, and merchandising will have to adapt to meet these demands while remaining true to the brand's identity.

For those who want to know more about the future of merchandising, this article on future retail trends offers an in-depth analysis of future developments.

Questions & answers about merchandising in 2024

What is merchandising and why is it important?

The merchandising is the set of techniques used by retailers to optimize product presentation in stores, with the aim of attracting customers' attention and maximizing sales. It is important because it directly influences the shopping experience and can be a key differentiating factor for brands.

Is merchandising still relevant in the digital age?

Yes, the merchandising is still relevant, but it's changing. With the rise of online retailing, merchandising now extends into the digital realm, where it is crucial to creating engaging, personalized shopping experiences. Successful companies combine physical and digital merchandising to deliver a consistent omnichannel experience.

How does D2C influence traditional merchandising?

The model D2C (Direct-to-Consumer) allows brands to sell directly to consumers without going through distributors, changing the rules of merchandising. D2C companies are focusing more on their online presence and digital user experience, reducing their reliance on traditional in-store merchandising techniques.

What are the new merchandising trends for 2024?

The new trends include the integration of technologies such as artificial intelligence and augmented reality, increased personalization of the customer experience, and the development of omnichannel merchandising that combines the benefits of physical and online sales. These trends are redefining the way products are presented and marketed in an increasingly connected world.