Cross Merchandising

Cross Merchandising

Cross Merchandising Jonathan Poland

Cross merchandising is a retail strategy that involves placing related or complementary products in close proximity to each other in order to encourage customers to purchase multiple items. This can be done both in-store and online.

For example, a retailer might place a display of barbecue grills near the outdoor furniture section, or a display of swimsuits near the beach towels. The goal of cross merchandising is to present products in a way that makes them more appealing and encourages customers to add additional items to their purchase.

Cross merchandising can be effective in increasing sales and revenue for retailers. By placing related products together, retailers can create a cohesive shopping experience and make it easier for customers to find everything they need in one place. Cross merchandising can also help retailers to make use of underutilized space, such as corners or end caps, by creating a visually appealing display that draws customers in.

However, it is important for retailers to be mindful of the placement of items and ensure that the products being cross merchandised are relevant and complementary. Otherwise, the strategy may be ineffective or even confusing for customers.

In addition to in-store cross merchandising, retailers can also use cross merchandising techniques online, such as through product recommendations or upselling techniques. By presenting related or complementary products to customers during the online checkout process, retailers can encourage customers to add additional items to their purchase. Overall, cross merchandising can be a valuable strategy for retailers looking to increase sales and improve the shopping experience for their customers.

Here are some examples of cross merchandising:

  1. A grocery store placing bags of chips near the dips and spreads section.
  2. A clothing store placing a display of belts near the shoes section.
  3. A bookstore placing a display of travel guides near the luggage section.
  4. An electronics store placing a display of phone cases near the phone section.
  5. An online retailer recommending related or complementary products to customers during the checkout process, such as headphones to go with a new phone or a protective case for a new tablet.
  6. A home improvement store placing a display of gardening tools near the seeds and plants section.
  7. A toy store placing a display of board games near the puzzle section.
  8. A sporting goods store placing a display of water bottles near the fitness equipment section.
Learn More
Cost Performance Index Jonathan Poland

Cost Performance Index

Cost Performance Index (CPI) is a project management metric that measures the efficiency of project cost management. It is calculated…

Analysis Paralysis Jonathan Poland

Analysis Paralysis

Analysis paralysis, also known as “paralysis by analysis,” is a phenomenon that occurs when individuals or groups become so focused…

Professional Skills Jonathan Poland

Professional Skills

Professional skills are a combination of talents, abilities, knowledge, and character traits that are necessary for a person to be…

Pricing Power Jonathan Poland

Pricing Power

Pricing power refers to a company’s ability to increase prices without significantly impacting demand for their products or services. This…

Relationship marketing Jonathan Poland

Relationship marketing

Relationship marketing is a type of marketing that focuses on building long-term, mutually beneficial relationships with customers, rather than just…

Risk Probability Jonathan Poland

Risk Probability

Risk probability refers to the likelihood that a particular risk will occur. It is an important element of risk analysis,…

Risk-Reward Ratio Jonathan Poland

Risk-Reward Ratio

The risk-reward ratio is a measure that compares the potential for losses to the potential for gains for a particular…

Operating Costs Jonathan Poland

Operating Costs

Operating costs are the expenses that a company incurs in order to generate revenues from its business operations. These costs…

Sticky Prices Jonathan Poland

Sticky Prices

Sticky prices are a common phenomenon in many markets, and they can have a significant impact on the overall economy.…

Content Database

Search over 1,000 posts on topics across
business, finance, and capital markets.

Strategy 101 Jonathan Poland

Strategy 101

Business strategy is the set of actions and decisions that a business takes in order to achieve its goals and…

Market Research 150 150 Jonathan Poland

Market Research

Market research is a fundamental step for business development as it helps businesses understand their market, customers, and competitors better.…

Industrial Design Jonathan Poland

Industrial Design

Industrial design involves creating designs for mass-produced products. A common principle in industrial design is that the design should be…

Compliance Risk Jonathan Poland

Compliance Risk

Compliance risk refers to the risk that an organization may face as a result of not complying with laws, regulations,…

Social Capital Jonathan Poland

Social Capital

Social capital refers to the networks, norms, and trust within a society that facilitate cooperation and coordination. It is the…

Sales Planning Jonathan Poland

Sales Planning

Sales planning is the process of setting revenue and unit targets for a sales team, and developing a plan to…

Relationship marketing Jonathan Poland

Relationship marketing

Relationship marketing is a type of marketing that focuses on building long-term, mutually beneficial relationships with customers, rather than just…

Product Launch Jonathan Poland

Product Launch

Product launch refers to the introduction of a new or updated product to a specific market. This is an important…

Rites of Passage Jonathan Poland

Rites of Passage

A rite of passage is a ceremony or event that marks an important transition or milestone in a person’s life.…