what is merchandising 
merchandising is the presentation and promotion of goods that are available for purchase for both wholesale and retail sales this includes marketing strategies display design and competitive pricing including discounting merchandising is important for retailers looking to cultivate their brand improve the experience of customers compete with others in the sector and ultimately drive sales understanding merchandisingmerchandising includes the determination of quantities setting prices for goods creating display designs developing marketing strategies and establishing discounts or coupons more broadly merchandising may refer to retail sales itself the provision of goods to end user consumers cycles of merchandising are specific to cultures and climates these cycles may accommodate school schedules and incorporate regional and seasonal holidays as well as the predicted impact of weather merchandising can take on different and more specific definitions in regard to different aspects of retail sales for example in marketing merchandising can refer to the use of one product image or brand to sell another product image or brand the word merchandise comes from the old french word marchandise from marchand which means merchant special considerationssince retailers may or may not be producers of the goods they sell measuring the gross value of all sales provides insight into the company s performance this is especially true in the customer to customer market where the retailer serves as a third party mechanism for connecting buyers and sellers without actually participating as either merchandising may also provide value to retailers in the consignment sector in this sector retailers never officially purchase their inventory even though the items are often housed within a company s retail location the business functions as the authorized reseller often for a fee of another person s or entity s merchandise or property generally they are never the true owner of the item because the person or entity that placed the item on consignment may return and claim the item if they so choose gross merchandise value is the total value of merchandise sold over a given period of time through a customer to customer exchange site it is a measure of the growth of the business all around the world but most notably in the united states the reality of merchandising is getting an update the roles and rules of merchandising are experiencing an evolution chief merchants formerly concerned mainly with the selection and presentation of products now have broader accountability and a heavier hand in customer experience as well as the development of design and talent related to display and marketing design because consumer savvy is broadening and technology is playing such a massive role in merchandising companies need to stay ahead of consumers expectations innovation and experimentation have a central role in retailers merchandising strategies u s retail cyclesin the united states the routine retail cycle starts at the beginning of january during this time merchandising includes the promotion of valentine s day and st patrick s day products and related items shortly following this presidents day is represented through special sales and discounts the next major holiday in the united states is easter during this time not only is the holiday promoted but so is springtime and the associated warmer weather most promoted products at that time of year include clothing items appropriate for warmer weather in addition to tools and other items suited for outdoor activities such as gardening and picnics these items are typically made available mid winter and heavily marketed and promoted to move such items from shelves to make room for the next batch of products the cycle continues through the rest of the year in the same manner accounting for mother s day memorial day graduation season father s day the fourth of july labor day halloween thanksgiving and christmas retail is the largest private sector employer in the united states responsible for one out of every four jobs or 52 million american workers 1merchandising typically varies within retail chains but will vary greatly depending upon the region of the country and within states themselves merchandising company vs service companyas the name suggests a merchandising company engages in the sale of tangible goods to consumers these businesses incur costs such as labor and materials to present and ultimately sell products service companies do not sell tangible goods to produce income rather they provide services to customers or clients who value their innovation and expertise examples of service companies include consultants accountants financial planners and insurance providers merchandising strategiesmerchandisers employ a number of different strategies to attract buyers to make purchases including window and in store displays strategic grouping of products well stocked shelves that have clear signage the highlighting of certain promotional products samples and other freebies in store demonstrations and other in store advertisements cleanliness and neatness are also important as they are synonymous with professionalism a business s online store should also use merchandising strategies to appeal to online shoppers benefits of merchandisingmerchandising is critical for a retailer as it can directly impact sales and customer retention whether a store has a physical presence and or an online presence how the store presents itself and its products is crucial in a physical store cleanliness organization ease of accessibility and the strategic use of discounts and offers can be the difference between a customer that casually browses once and one that becomes a repeat purchaser effective merchandising can help a retailer grow its brand compete with others in its same category and stay competitive even when the economy is struggling 