Cross-merchandising is a practical tactic that category managers use to drive additional in-store sales. They do this by including a product in a category even though it doesn't belong.
When cross merchandising there needs to be a logical link between the products. Consider the following scenarios:
Good scenario - your shoppers are presented with Doritos dip in salsa sauce while choosing a bag of chips for the evening's pre-dinner snack. These two products have a clear link to each other and will encourage an additional impulsive purchase.
Bad scenario - your shoppers are interrupted by an unrelated display of cutlery hanging over the deodorant shelf. these products have no logical link and won't help drive additional in-store sales.
When done with a "logical link", cross-merchandising adds convenience to the consumer's shopping experience and sparks additional impulsive purchases. These help with the ongoing quest of driving additional store sales.
Here are three examples of cross-merchandising that will drive additional in-store sales.
Pharmacy Stores
Tissues and cold and flu medicines
Picture yourself visiting a pharmacy for some cold and flu medicine. While compiling a cocktail of meds from the shelf you're presented with a box of soft tissues... You're more likely to add that box of tissues to your basket than if it was on the other side of the store.
Convenience Stores
Pairing flowers, wine and chocolate (especially on Valentine's Day)
Some convenience stores take advantage of this one every year. On Valentine's Day husbands and boyfriends forget to pre-plan their shopping so they stop at convenience stores on their way home from work.
These last-minute shoppers are bound to pay more at convenience stores that pair flowers, wine, and chocolate, making them look like superheroes when they get home.
Meat Supply Stores
Braai grids and firewood with braai meat
In South Africa, we love to braai (in other parts of the world, this would be the BBQ equivalent) and when we're in the meat section for some fresh braai meat we enjoy the convenience of having all braai necessities just a few steps from each other.
Conclusion
When done well, cross-merchandising is a great way to encourage impulsive buying and additional in-store sales. The best way to communicate this tactic to store staff, merchandisers, and implementation staff is with planograms.
Remember, cross merchandising has an impact on stock required at stores and it also has an impact on stock replenishment engine algorithms. Interesting in learning more about how a DotActiv solution can help your business thrive? Book your free meeting with a DotActiv expert. You can also browse (and buy) our software editions on our online store.
