Retail & Visual Merchandising: Decoded by the Best

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Retail and Visual Merchandising are two key retail functions that complement each other, each responding to distinct yet interconnected principles and requirements. What are the best proven techniques to turn your stores into standout points of sale? Read more below for the best tips to implement Retail Merchandising and Visual Merchandising.

Retail Merchandising determines the quantities of the ideal product assortment, while Visual Merchandising stages and highlights the products in-store. The Retail Merchandiser selects items, and once they arrive, the Visual Merchandiser arranges them in-store. Though these are two distinct activities, these roles work in tandem.

Retail Merchandisers work through a ‘funnel’

Organizing stores into clusters based on shared characteristics—such as flagship locations, medium-traffic stores, or resort boutiques. Rather than selecting products for each store individually, assortments are chosen by cluster, with minor adjustments as needed. This method saves time when managing many stores, though a more tailored approach is possible for a smaller network.

The cluster technique underscores the Retail Merchandiser's key role: balancing volume factors (e.g., store size, display space, traffic) with qualitative insights on customers—who they are, whether they are locals or tourists, and their purchasing power—to curate the right product selection.

Additionally, image considerations are crucial, especially in luxury. While sales will always be a priority, a strong visual identity is essential. Flagship stores must showcase statement runway pieces, even if they don’t sell, as they enhance brand image, particularly in Fashion Week displays. In contrast, department store corners focus on a more commercial, lower-priced selection.

“The right product, in the right place, at the right time.” However, she also highlights the importance of “recreating the designer’s universe through the product selection, inspiring dreams, and accepting that not everything will be a bestseller—always striving for balance to achieve business goals while maintaining brand image.”

Valérie Voindrot, Global Buying & Merchandising Director, Roger Vivier

One of the biggest challenges for a merchandiser is selecting products based on personal taste rather than what their customers will appreciate. A skilled merchandiser must choose the right products for the specific clientele of each store.

Regarding quantities, for stores with sales history, forecasting is easier, but key factors remain. It is always advisable to stock slightly above predicted sales to cover losses such as damage or theft. Also consider seasonal fluctuations—does the store experience steady traffic year-round, or is it in a location affected by seasonal fluctuations, such as a mountain resort or a seaside town? Lastly, adjust stock depth by price: the more exclusive and expensive an item, the lower the stock depth, and vice versa.

For those responsible for purchasing for the launch of an independent concept store or multi-brand boutique—where product selection is unlimited and there is no historical sales data for forecasting—the task is even more challenging. This topic was at the heart of my keynote speech at the latest Maison & Objet retail conference. Many attendees were eager to understand which product assortment and price positioning would be most suitable for their future stores.

To conclude the best practices in Retail Merchandising, the following golden rules apply:

• Always keep bestsellers well-stocked.
• Broaden the price range to offer options for all customer segments.
• Adopt a continuous “test & learn” mindset—never take anything for granted and be ready to reassess each season.

“The best practices in Retail Merchandising are precision, curiosity, and perseverance! But success ultimately depends on teamwork and cross-functional collaboration.”

STEFAN SEILER, HEAD OF RETAIL MERCHANDISING EMEA, MAISON MARGIELA

Once the Retail Merchandiser has finalized product selection for each store, the Visual Merchandiser takes center stage…

Visual Merchandisers must have balance

The Visual Merchandiser works in all areas of a store where products are displayed—first and foremost in the windows, but also throughout the store, utilizing all visual merchandising tools and display fixtures, such as racks for hanging items, shelves, showcases, and display tables for folded apparel and accessories.

Most luxury brands operate showrooms where internal simulations take place at the end of each buying session—five months before the products reach stores. Multiple display scenarios are tested based on store size and cluster classification. Once these simulations are approved, headquarters sends Visual Merchandising guidelines to each store for implementation.

Advanced merchandising software, such as IWD, facilitates these simulations using an intuitive drag-and-drop interface to create displays within a virtual store.

The challenge in this role is balancing commercial appeal with aesthetics. Depending on the brand’s market position, the emphasis may shift between the two. Even within the same brand, display strategies differ between a flagship store in a major city and a department store corner.

“The pillars of visual merchandising are customer experience and product strategy. The goal is to enhance the product by creating an engaging and stimulating environment while staying true to the creative direction and commercial plan.”

Massimo Cannavacciulo, Head of Visual Merchandising at Prada

Put simply, the more luxurious the brand, the more minimalist the display; mass-market stores, in contrast, require fuller displays due to higher traffic and frequent transactions. Luxury boutiques, with fewer visitors, can afford a refined, less cluttered look.

Striking the right balance is key—a well-organized display reassures customers and drives sales, making it the Visual Merchandiser’s job to align aesthetics with brand strategy.

A few fundamental principles remain effective in this field:

• Always display bestsellers.
• Place new arrivals at the store entrance.
• Organize the space by major product categories, except in window displays, where multi-category storytelling is encouraged.
• Create strong, impactful window displays.
• Beauty and lifestyle sectors favor dense, clean, and symmetrical displays using pyramid structures with odd-numbered groupings.
• Play with various furniture pieces and display materials of different sizes and shapes to add rhythm to the visual presentation.
• For apparel, avoid overcrowding the display with too much stock; instead, ensure regular product rotation and arrange items by theme, followed by color mood.

There is much more to explore about these two fascinating professions and their best practices. But with these golden rules, the essential secrets are now yours to master!

Picture: Martin Margiela Window Display at Barneys