Key retail visual merchandising terms every retailer needs to know

The world of visual merchandising and shop window dressing could be very confusing with a lot of specific terminology. If you have ever wondered what certain terms actually mean in the retail and visual merchandising world, we have compiled the definitions of some of the commonly used terms.

Basic Visual Merchandising Terms: 

• Merchandising – using effective presentation techniques to entice customers to purchase products.
• Fixtures – Shelving, cabinets, tables, rods, counters, stands, easels, forms, and platforms on which merchandise is stocked and displayed for sale in the shop.
• Optimise – planning, implementing and reviewing steps to improve the likelihood of a purchase being made.
• Inventory – The items for sale in your store.
• Layout – The way in which your store is laid out, and how the products are arranged for sale.
• ROI – Acronym for Return on Investment. This is a way of working out if the money you are investing is profitable. 
• Consumer - a person who purchases goods and services for personal use, or the decision maker for business purchases.
• POP/POS – This stands for Point of Purchase/Point of Sale. The place where the transaction is complete (and a great place to put impulse products!)

More Advanced Visual Merchandising Terms:

• Themes – This is the topic of your display. It should represent the message you would like to convey to the shoppers. Consider the way that your products are used, and build your theme around that.
• Planogram – Shortened to POG, this is a visual representation of the products and services in your shop. Planogram is essentially a model that indicates the best positioning and placement of your merchandise.
• Hot Spot – A place that customers gravitate to in your store. Place your most profitable items here.
• Props – Objects added that support the theme of the display. These items are used for building ambience and theme in your shop; they would not be for sale.
• Sightlines - a line of vision from someone's eye to what should be seen (determining good or bad visibility). Good merchandising would have long sightlines, so customers can see a lot of the store at once.
• Ambience – Difficult to put your finger on, but this is the character of a store. Sensory information will combine to create this (I.e. sight, sound, smell, textures)
• Proportional Merchandising -In simple terms, this is the technique of giving more space to your best sellers and less space to your poor sellers Knowing which items are most profitable, and assigning space to them in your store proportionate to their profitability.
• Product Engagement – When your customer engages with a product, they pay it more attention, maybe by touching or picking it up. Increased product engagement will lead to increased sales.