Merchandising and Display
This domain tests how products are placed and presented: planograms, layout, shelf positions, signage and display standards that convert footfall into sales.
Merchandising principles
Right product, right place, right time, right quantity, right price. A planogram is the diagram that fixes each SKU's position and facings; compliance keeps the shelf easy to shop and easy to replenish.
Layout types
- Grid: parallel aisles, efficient for supermarkets
- Racetrack or loop: a path past many departments, used in department stores
- Free-flow: open clusters, suited to boutiques
- Herringbone: aisles angled to the main walkway
Placement rules
Eye level is the golden zone for high-margin and promoted lines; bottom shelves take bulk and heavy packs; aisle ends carry impulse and seasonal offers. Use vertical colour blocking, cross-merchandising (chips beside soft drinks), accurate price tags aligned to the product, faced-up front rows, and first-expiry-first-out rotation. Never let cartons or backstock appear in the customer's view.
Worked example
A 1 metre wide bay has four shelves and category shares of 40%, 30%, 20% and 10% of sales. Reasoning: space follows sales, so allocate roughly 40 cm, 30 cm, 20 cm and 10 cm of width. Adjust slightly for profit and give a new line a minimum facing, but keep the total at 100 cm.
Traps that cost marks
Keeping stock in a customer-facing gap; price tags misaligned with the item; heavy items on top shelves; overloading shelves above the safe reach; treating display work as storage.
Key points
- Planogram fixes position and facings per SKU
- Eye level is the golden zone; bulk goes low
- Space allocation roughly follows sales share
- Rotate stock so the earliest expiry sells first
- Gaps and backstock in view reduce sales