Online & In-Store Grocery Merchandising: Everything You Need To Know

Grocery shopping has changed significantly in the last few years. Online grocery shopping has grown exponentially for maximum convenience. But despite the gradual shift toward digital shopping, the value of a welcoming, navigable, and visually appealing physical store remains undeniable.

Grocery business owners must learn the art of grocery store merchandising to hit their targets for moving inventory and earning revenue.

In this article, we’ll first explore grocery merchandising strategies for physical stores and then transition to techniques optimized for online stores.

What is grocery merchandising?

Grocery store merchandising is the practice of staging a store to encourage customers to purchase more products. This grocery store operation leverages merchandising strategies, promotions, and creative product displays to prompt customers to add items to their carts.

Whether you operate a small independent store or a large chain of supermarkets, grocery merchandising will always be important. To succeed, store owners must cater to customers’ preferences and shopping behavior.

There is a clear financial incentive to learn how product placement in grocery store displays affects people's purchases. Every time a customer visits your store, it represents an opportunity to make a sale and clear inventory.

On average, a US household of two members spends $165 on groceries each week. A 2022 consumer survey found respondents more likely to shop at brick-and-mortar stores. Over 70% of respondents declared a preference for physical retail over online shopping.

Grocery store merchandising can yield significant returns for a very low investment. Tracking sales data, customer traffic, and forecasting demand will help you create a plan that best uses your store’s physical space.

4 key elements of grocery merchandising in your physical store

Regardless of the size of your store, you need creative grocery display ideas to keep customers engaged. One of the main objectives of supermarket merchandising is to create a vibrant environment where customers can shop.

For the best results, your grocery merchandising strategy should include the elements and best practices listed below.

1. Shelf placement

How you arrange products on your store shelves is a small detail with a huge impact. Strategically place complementary items close to each other to encourage impulse purchases. For example, place readymade dips next to the chips and snacks section.

You should also use vertical space effectively. The underlying principles for shelf placement are as follows:

• Top shelf: This space is reserved for premium-yet-lightweight products that customers are happy to reach upward and grab.
• Eye level: This is the most valuable real estate on any shelf, as it is situated in the shoppers’ line of sight. It is called the “reach” section and should be used for fast-moving, best-selling products.
• Lower shelves: Lower-priced alternatives to best-sellers are placed on the lower shelves. These shelves are in children's “reach” zone, making them a great place to store products like chocolates and candies.
• Bottom shelf: This shelf is reserved for staples and bulky products. It is also called the “destination” shelf since it usually contains the items that prompt regular shopping trips.

Effective shelf placement of your products is an asset to your inventory management, as it will help you clear stock at a faster rate.

2. Promotional displays

Learning how to best use promotional displays is one of the critical aspects of grocery store merchandising. Customers approach promotional displays for special products or valuable offers, so having a few dotted around your store is vital.

There are different types of promotional displays you can use to attract customers:

• Free-standing display units: Usually situated toward the front of the store, these are attractively staged displays of special products, such as new arrivals or seasonal specialties.
• End caps: Located at the end of each aisle, end caps are vertical displays that showcase a collection of products from a single brand. They can also highlight one particular product over alternatives in the aisle.
• Offer bins: Discounted goods or low-priced items should be placed in offer bins and displayed conspicuously. Customers can browse the selection and choose what they want to add to their cart.

3. Fresh produce counter

A consumer survey by Drive Research found that fresh produce is the second-most purchased grocery category among US shoppers. More than 80% of all grocery consumers buy fresh produce on every trip.

Ensure that your fresh food display looks colorful and eye-catching. Break up the green with brighter veggies and fruits like carrots, bell peppers, and oranges. Use staggered shelves to showcase more goods in the same space.

4. Store planning

Consumers visit grocery stores for three primary categories: dairy, fresh produce, and snacks. Knowing this, you should plan your store’s layout to ensure customers spend as much time as possible in your store before checking out.

Place the best-selling, most popular items toward the back of your store. This ensures that customers have to walk through aisles, view other items in stock, and add them to their cart.

Impulse purchases, like candy, magazines, and cigarettes, should be placed near payment counters. Customers will usually make a last-minute decision to add these to the cart while they’re waiting in line.

Keeping items near cashiers also serves time-strapped customers who just want to quickly step into the store and grab one or two small items.

4 principles for successful grocery merchandising

Formulate your grocery merchandising strategy using these four fundamental principles:

• Product expiry: Place products close to expiry at the front of the shelves so they do not become dead stock.
• Product visibility: Every product in your store should be oriented toward customers, and brands and packaging should be clearly visible.
• Product availability: Customers should be able to reach out and pick up the products easily. This means shelves and displays should be organized and clutter-free.
• Price relevance: All price tags must be up-to-date and accurate so customers know how much each item costs.

Effective grocery store merchandising leads to better shopping experiences and higher revenue. Switch your layout once every few months to prevent customers from becoming locked in a pattern and neglecting certain sections of the store.

Keeping customers engaged is an ongoing effort for all supermarkets, but it doesn’t have to be difficult. Effective grocery store merchandising is a reliable and proven way to increase engagement and sales among customers who visit your store.

Online grocery merchandising. Key strategies for ecommerce success

As online grocery shopping grows, online supermarkets and grocery stores must optimize digital merchandising to engage customers and drive sales effectively. Here’s how traditional merchandising principles can be adapted for online platforms.

1. Optimizing Virtual Shelves

In online grocery stores, the "shelf" is the product catalog or homepage. Here’s how to make virtual shelves work:

• Product Placement: Showcase popular items on the homepage or at the top of search results. This approach mimics in-store shelf placement, positioning high-demand products within easy reach.
• Product Grouping: Place complementary items together online, such as grouping dips with chips or bread with sandwich spreads. It encourages customers to add more items to their cart in one visit.

Wave Grocery allows stores to feature popular and seasonal items on landing pages and suggests complementary products to encourage multi-item purchases.

2. Personalized Product Recommendations

Personalized suggestions drive customer engagement by offering items based on past purchases or browsing history, similar to in-store end-cap displays featuring customer-favorite items.

• AI-Based Suggestions: Use AI to analyze browsing patterns and recommend products. This can include recent purchases, commonly paired items, or new arrivals.
• Targeted Promotions: Offer personalized discounts or bundles, such as discounts on produce frequently bought together. Personalization increases the likelihood of customers adding extra items to their carts.

Wave Grocery supports AI-driven product recommendations, which dynamically adjust based on each customer’s shopping patterns, leading to better-targeted promotions.

3. Digital Promotions and Limited-Time Offers

Online grocery platforms can leverage digital promotions similar to physical promotional displays, making sure customers are aware of limited-time offers and high-value deals.

• Highlighting Discounts and Bundles: Display exclusive online promotions prominently on the homepage or in a designated “Deals” section. Include visual tags like “Save 20%” or “Limited Time” to create urgency.
• Cart Reminders: Cart reminders can increase conversion by prompting users with potential savings before checkout, similar to in-store displays near the cash register.

Wave Grocery allows stores to design and feature special promotions on the app interface, which boosts visibility for offers and bundles while ensuring smooth checkout reminders.

4. Enhancing Customer Engagement

Effective digital merchandising keeps customers engaged, much like an inviting physical layout in a store. Here are engagement tips for online stores:

• Personalized Notifications: Use push notifications for loyalty rewards or special promotions based on past purchases to build rapport.
• Interactive Features: Integrate interactive options, such as “like” buttons for favorite items, allowing customers to save products for easy future access.

Wave Grocery’s ecommerce platform offers built-in and ready-to-use customer loyalty and engagement features, making it easy to send targeted promotions and re-engage customers through loyalty rewards.

Adapting merchandising strategies for an online grocery environment maximizes engagement and conversions. With a platform like Wave Grocery, stores can seamlessly transition traditional techniques into the digital space, improving both customer satisfaction and profitability.