Mastering Merchandising: How Strategic Product Placement Drives Sales

Merchandising isn’t just about making your store look good—it’s about optimizing your space to sell more, faster, and at better margins. Whether you’re a retail business owner, a store manager, or a franchise operator, understanding how to place, display, and move products can have a significant impact on revenue.

In this blog, we’ll explore real-world examples of merchandising techniques that boost sales, including strategies from major retailers and lessons from Ayoub’s, my own retail business.

1. The Metrics Behind Merchandising: What to Track?

Before moving products around, you need to understand which metrics matter when deciding product placement:

• Sales per Square Foot – Is every part of your store generating maximum revenue?
• Sell-Through Rate – How fast is a product selling compared to its inventory?
• Basket Affinity – What products are frequently bought together?
• Impulse vs. Destination Products – Do customers seek this product, or does it need to be in high-traffic areas?
• Turnover Rate – How quickly does stock need replenishing?
• Gross Margin Return on Investment (GMROI) – Are you making enough profit for the space a product takes?

By tracking these numbers, you can make data-driven decisions instead of relying on intuition.

2. The Power of Abundance vs. Minimalist Displays

The way you display a product influences customer perception and sales velocity.

A. Abundance Display: The "Stack It High, Watch It Fly" Approach

Large, overflowing displays create urgency and imply freshness and affordability. Stores like Costco use this strategy because it signals bulk savings and value.

Example from Ayoub’s: Abundance Drives More Sales

At Ayoub’s, we found that when roasted nuts were in pre-packaged bags, customers hesitated before buying. But when we displayed them in large, overflowing bins near the entrance, sales jumped by 25%. The smell of fresh roasting plus the visual abundance made them irresistible.

Best For:

• Bulk foods
• Seasonal promotions
• High-velocity products

B. Minimalist Display: The "Less is More" Luxury Effect

Luxury brands like Apple or high-end boutiques use single-unit displays to create an exclusive feel. Customers associate sparse, well-lit displays with premium quality and limited availability.

Example from Ayoub’s: Single-Unit Display for Premium Items

For our saffron pistachios, instead of bulk bins, we used a premium wooden tray with only a few carefully arranged packs. This increased perceived value and allowed us to charge a higher price without resistance.

Best For:

• Premium or artisanal items
• Limited-edition or seasonal releases
• Products with a high price tag

3. The Science of Product Placement: Where to Put What?

Where you place a product in your store determines how well it sells.

A. Eye-Level is Buy-Level

Studies show that products placed at eye level sell up to 30% more than those at lower levels. Supermarkets charge brands for eye-level placement because they know it guarantees better sales.

Test This in Your Store: Move best-margin products to eye level and track their performance for two weeks.

B. End Caps: The Best Sales Boosters

End caps (the displays at the end of aisles) are some of the most profitable spaces in a store because they catch passing traffic.

Example from Ayoub’s: Holiday Sales Boost with End Caps

During the holiday season, we placed gift-packaged dried fruits and nuts on an end cap instead of regular shelves. Sales increased by 40% because customers didn’t have to look for them—they were right in their path.

Best For:

• High-margin impulse buys
• Seasonal or limited-time items
• New product launches

C. Cross-Merchandising: The Art of Pairing Products

Customers buy more when they see products that naturally go together.

Example from Ayoub’s: Selling More by Pairing Coffee & Nuts

We tested placing dark chocolate-covered almonds near our premium roasted coffee. Since both are seen as “luxury pairings,” we saw a 20% increase in sales for both products.

Best For:

• Complementary items (e.g., coffee and nuts, tea and honey)
• Increasing basket size

Try This: Place a popular product next to a complementary high-margin product and see if sales increase.

4. Customer Flow: Making Customers See What You Want

Ever noticed how IKEA forces customers to walk through the entire store before reaching the checkout? That’s intentional—it ensures exposure to every product category.

Example from Ayoub’s: Controlling the Shopping Journey

In one of our stores, we moved high-margin snack packs to a midway stopping point instead of just at checkout. Customers had a chance to consider them before their final decision—resulting in a 15% increase in sales.

5. Scarcity Sells: The "Only 5 Left" Effect

Nike and Supreme use limited-time, low-stock displays to create a sense of urgency.

Example from Ayoub’s: Creating FOMO with Limited Stock

When we launched a limited-edition spiced nut blend, instead of stocking 50 units at once, we displayed only 5 at a time. Customers assumed it was running out, and sales skyrocketed.

Best For:

• Exclusive, small-batch items
• Seasonal or holiday specials
• High-margin specialty goods

Final Takeaways: How to Apply These Strategies

Track the Right Metrics: Monitor sell-through rate, turnover, and sales per square foot to guide placement decisions.
Use the Right Display for the Right Product: Abundance for high-volume products, minimalist for luxury goods.
Move High-Margin Items to Eye Level: Place bestsellers and high-margin products where they’re easiest to grab.
Leverage End Caps & Cross-Merchandising: Place impulse buys in high-traffic areas and pair products to increase basket size.
Test & Adapt: Experiment with small changes in placement and track sales performance.

What’s Next?

If you’re running a retail store or franchise and want to optimize merchandising for higher sales, start by testing one or two of these strategies today.

What merchandising tactics have worked best for you? Let me know in the comments!