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Report: Poor Visual Merchandising Cost Retailers $125 Billion In 12 Months

First-of-its-kind report shows the dire effects of poor visual merchandising

It makes sense that the visual state of a store would affect how much money consumers would spend on purchases, but now we have concrete data to back up these assumptions. Analysis and insights firm GlobalData has released a report in partnership with visual merchandising software provider One Door that measures consumer satisfaction with visual merchandising and its impact on retail sales.

Here are some key findings of the first-of-its-kind report:

● US retailers lost $125 billion in sales over the past 12 months due to poor visual merchandising.

● Over the past 12 months, almost half of consumers left a store and abandoned their purchases due to poor visual merchandising.

● 73.4% of consumers say they are not completely satisfied with in-store visual merchandising.

“For years, retailers have implicitly understood the linkage between great visual merchandising and sales results, but no one has ever really measured the impact,” said One Door CEO Tom Erskine. “As retailers look to prioritize their investments, this data will shed light on the potential downside of cutting corners related to the in-store experience.”

Managing Director Retail at GlobalData Neil Saunders adds: “It’s well known that good merchandising can drive sales, but the reverse is also true – poor visual merchandising is highly damaging to the revenue line. Consumers these days are time poor and have a low tolerance for friction in stores. Retailers that make life difficult with messy displays, hard to find products, or excess clutter are driving their consumers to shop elsewhere. And in today’s competitive market, there are plenty of alternatives – including online shopping.”

The full report is available here.

 

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