Placement of Goods
Considering the Profit Value of Goods
Generally, staple goods and basic (lower value) goods tend to make lower profits for
retailers than other more occasional and more luxurious goods. For instance, sugar, flour and eggs when sold separately would not make as high a percentage profit (or margin) as decorative cakes, for example. Also, nails and wood may not attract the same percentage margins as a finished wooden cabinet.
Guiding the Customer to Higher Margin Products
For this reason retailers tend to display these occasional/luxurious (higher value) goods
amongst – or en route to - lower value items. This can be particularly advantageous to a self-service store where
customers who are looking for lower value goods are guided past higher value items.
This aspect of merchandising can make a significant contribution to higher profits. This principle is also used in printed catalogues and internet shopping sites.
Shoplifting
Whilst the above principles will improve profitability, consideration must be given to product security otherwise shoplifting could wipe out any increased profits.
Product Display | Legal Requirements | Considering Security | Placement of Goods | Support Material
Display Fixtures | Point of Sale | Window Display
Décor | News Management | Price Deals | Staff Presentation | Merchandising
History | Marketing | The Supply Chain | Types of Retail Outlet
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