Visual merchandising is the practice in the retail industry of optimizing the presentation of products and services to better highlight their features and benefits.
[1][2] Visual merchandising traditionally occurs in brick and mortar stores using a blend of lighting, color combinations, and articles of decor to stimulate an observer and generate interest.
[citation needed] In the 20th century, well-known artists such as Salvador Dalí[3] and Andy Warhol[4][5] created window displays.
Currently, visual merchandising has become a major tool of business promotion which is widely used to attract customers and increase sales.
For retailers to gain a competitive advantage in the marketplace, visual merchandising is an important factor and an effective way of adding value to their brand.
Visual merchandising communicates with customers through elements that stimulate their senses, such as lighting, music, aromas, and television screens.
[10] Customers can form an important bias of the merchandise quality based on the retail store design environment, and even factors such as employee's interpersonal skills and how they are treated.
A recent study has found that these two techniques have the greatest effect on impulse buying;[12] therefore, they are important aspects for the retailer.
In-store design and window display techniques can be used to enhance the store environment, influencing consumer behaviour and purchasing decisions.
Efficient, customer-friendly environment makes shopping easier for consumers, which encourages buying and, most importantly, reassures repeat purchasing.
[14] In-store visual merchandising can be used to capture the attention of consumers while they are in the store, an essential component in the buying decision-making process.
[16] When applied successfully to a store, these factors can meet the needs of the consumer and provide a positive in-store purchasing environment.
The layout of a store is a significant factor for the maintenance of a thriving business, which can help advance sales and profitability.
When customers enter the transition zone they need time to adjust to the new environment including the lighting, the temperature and other sights and sounds.
Higher profit margin items are not recommended to be placed in that area because customers do not notice it while they are preoccupied with adjusting to the new environmental stimuli.
[15] Spatial design of a retail store is a key aspect when it comes to creating an enjoyable experience, and is also an effective way of communicating with customers.
[15] In a fashion retail store, complete outfits on a mannequin or the placement of tops beside jackets and bags by other accessories such as scarves and jewelry are an example of bundling.
Atmospherics should all coordinate with each other to create a consistent ambience and positively influence the consumer's shopping experience and buying decision-making process.
[15] Visuals such as light and display are not always enough to enhance the overall ambience of the store, and retain customer attention; therefore, other elements such as music and scents can be used.
The lighting inside a retail store can be used strategically to highlight products on display or to create a comfortable environment for consumers.
It is an important element used (alongside music, temperature, fragrance, and layout) in retail to create an atmosphere that matches with the brand's personality.
[24] The strategic use of light can change the mood of a consumer and affect their subconscious mind during their shopping experience within a retail store.
[24] The music played within a store can promote a brand's image, and can also aid consumers in making purchase decisions.
For example, a store with a teenage target market should consider playing pop music, as this is a genre that a younger audience commonly enjoys.
Playing this genre will make their shopping experience more enjoyable, which can result in them staying longer in the store, exposing them to more merchandise, and influencing possible purchasing decisions.
Windows can give consumers and by-passers understanding as to what goods are sold in store[25] They are also an effective way of promoting fashion trends and providing useful information to the target audience.
[14] Visual merchandising is a multi-sensory tool used by retailers to catch the attention of customers and attract them into a store to make a purchase.
Window displays are used as an initial attraction to bring customers into a store and are also used as a marketing tool to communicate the brand's image to the consumers as well as to distinguish itself from its competitors.
For example, blue can trigger a calm response, green and brown can promote restfulness, warm colours such as red, orange and yellow can initiate exciting, cheerful, friendly, vibrant, simulating reactions, purple can give the impression of elegance and sophistication, while grey colours can give off a depressing, dull feel.
[14] A floor map helps visual merchandisers to find the best place for garments, according to the color stories of clothes and footwear in the shop.