Correct merchandising and use of point of sale material can have a significant impact on sales. It is a fundamental requirement of any retail environment to display products in such a way that it generates customer interest and increases sales. Effective merchandising can:

• Increase impulse and link sales.
• Increase prescription business.
• Improve value perception.
• Increase average customer spend.
• Allow you to compete with other retailers or pharmacies.
• Increase sales and profit.
• Improve store layout and appearance.
• Reduce stock holding.
• Create a customer friendly layout making it easier to locate products.

Shoppers can be easily be confused if effective merchandising isn't implemented. This is because as consumers we are tuned into product and range displays within major retail outlets. We like to find our desired product quickly and easily and we want to be able to browse within categories that have a logical flow and are appealing to look at.

Confused shoppers will often leave the pharmacy empty handed, many people assume that a customer will ask if they cannot find the item they are looking for but this isn't always the case. On average a customer will only spend around 30 seconds browsing for their desired product; that time is significantly reduced if they are feeling ill. By ensuring that the principles of merchandising are followed you can reduce the risk of customers walking out without purchasing anything as well as help them navigate their way around the pharmacy.

The next pages will cover the six core principles of merchandising.