Why is Point-Of-Sale Merchandising Important in Retail?

Wondering is point-of-sale merchandising important in retail? New to the idea of point-of-sale retail strategies, or wondered if they would benefit your shop? In this blog, we will explain the benefits of having expertly curated and crafted POS displays in your shop which will drive customer sales.

Is point-of-sale merchandising important in retail?

Ever purchased a confectionary at a till point, been lured to secure an add-on by the cashier or impulsively added an item to your basket while standing in line? If the answer is yes, then you’ve likely encountered an effective Point of Sale design. The Point of Sale (POS) is an area in a retail environment where the customer completes their final transaction. It is the final stage of the in-store retail journey where a customer can be influenced to purchase additional items.

To understand the influence of an effective POS design, it is important to have an awareness of good merchandising. Merchandising in retail involves promoting goods or services, including marketing strategies, display design or promotional offers. It is heavily reliant on psychology and it is vital to display products attractively and engagingly to influence sales.

Let’s dive a bit deeper into the benefits of POS merchandising:

Increased Sales 

POS displays work best for low-value, promotional or new-in products. This is down to the placement of POS displays near the area where a transaction will take place. A customer will already have gone through the decision-making process of the items that they want to buy, but now, it is time for your POS design to do what it does best – drive additional sales.

Impulse buying accounts for 40-80% of all purchases and these are heavily influenced by the store environment. With an engaging POS display, customers can be triggered to purchase more because of a promotional campaign, unexpected need, or visual stimulus.

Brand Awareness 

Whether you’re a new brand or established, a main priority is to drive brand awareness. Customers have the purchasing power now and brand loyalty has weakened over the years due to more choice and comparison. It can be easy for a product to get lost in a sea of similar items. POS designs in line with your brand guidelines, paired with eye-catching colours, fonts and visuals can attract customers to your product. 

This can also give you more control over how your brand is marketed in a retail environment if, for example, you are franchised in department stores. Exposing your customer to your branding is critical to build trust and this will foster brand association in the mind of the consumer, developing the likelihood for return visits and repeat purchases. 

Customer Experience

Your POS stand may not be permanent but it can contribute to long-term brand building which can generate customer loyalty. POS designs can be a cost-effective option to communicate to your customers. When making a transaction, a POS display can communicate a message your sales team may not have time to, or it can distract from long queuing times which is a good means of combatting purchase abandonment.

If a customer has a good experience interacting with your brand, there is the potential for increased sales. Trust and positive interactions can be associated with the exploration of additional products or the sales of higher-priced options.

Think about your POS design carefully and how this can affect cost

It’s not as simple as getting a stand and placing it near the till point. There are important elements to consider when choosing a Point of Sale design. It is important to clarify objectives and goals to ensure that your POS display works for what you need it to do. Things to consider at this stage are things like budget, space, product, target audience and market trends.

The longevity of the stand must also be considered – will it be a permanent or semi-permanent fixture? Permanent POS designs are more durable and long-lasting. They can accommodate a variety of merchandise, allowing merchandisers to conduct product rotation frequently.

More permanent designs are likely created from timber and metal or could include digital elements. Semi-permanent stands are usually kept on display for a maximum of 6 months and are predominately made from cardboard. Cardboard displays can be a more cost-effective solution for items like confectionary, seasonal or hard-to-shift products.

However, permanent POS display stands can be designed to be modular and adaptable, with updatable signage spaces. This allows retailers to match POS displays to whatever promotional or seasonal offering there is at a given time, tailored to meet their needs.

Digital POS designs are perfect for this as they enable retailers to update their POS messaging in an instant. Digital POS designs can include an interactive touch screen or RFID lift-and-learn technology.

Whilst initial costs for these are higher, they can reduce the need to spend on recurring new semi-permanent POS fixtures. They allow shoppers to browse items, acquire extra information, or even make purchases immediately.

Through this interactivity, retailers can gather data on customer preferences. Utilising this data can inform future marketing and product strategies that will bring them closer to their customer and further meet their needs.

Types of POS merchandising displays

There is a wide variety of POS designs available, each tailored to particular product displays, stores, and degrees of consumer engagement. Here are some of the most popular varieties found in retail settings.

Drop Bins

These bins are often large, open containers housing a large number of items, allowing shoppers to quickly browse through and discover products.

Spinner Displays

These stands have rotating panels or tiers that allow many goods to be exhibited on a single platform. They’re ideal for displaying keychains, greeting cards, and smaller accessories.

Free Standing Display Units

These larger, freestanding stands are situated on the floor, frequently near aisles or noticeable spots within the store. They can display a variety of items and promotions and are often more visible.

Countertop Display Units

These are small, compact stands that are put on retail counters to exhibit small goods such as cosmetics, confections, or impulsive purchases. They’re conveniently accessible and draw clients’ attention during the checkout process.

Display Cubes

Display cubes are adaptable POS displays that provide visibility from many angles, allowing retailers to efficiently present a variety of products. They are perfect for displaying popular goods and encouraging impulse purchases in retail environments due to their modular form, branding options, and space-efficient nature.

Hanging signs

POS hanging signs are influential visual elements that draw attention and lead consumers through shop environments. They effectively communicate deals, directions, or brand messaging by using overhead space, boosting the shopping experience and generating interaction.

Bespoke POS displays

Personalised stands can be made to promote certain goods or services. For example, shoe displays stand for sunglasses, or seasonal displays for products exclusive to certain holidays. Bespoke POS displays can differentiate your product or brand in a homogenous retail environment, where competition for customer interaction is fierce.

Top tips for POS design:

  • Ensure that your messaging is clear and specific. Align it with your overall brand identity to encourage brand recall.
  • Highlight specific products. This may be new products or promotional offers.
  • Pick the perfect spot. Position your POS design in a high-traffic area but be sure not to overwhelm the customer with too much product in one space.
  • Make it eye-catching. Use striking images and visuals that align with your brand visuals to grab the attention of the customer.
  • Be flexible. Make sure that you’re giving the customer the newness that they constantly crave by rotating the merchandise frequently.
  • Invest in materials that are both flexible and long-lasting. Designs must be durable and provide simple upgrades or modifications.

How can Ripple help with creating POS designs?

Crafting a compelling and purposeful experience is critical in retail, where every moment at the Point of Sale may leave a lasting mark. We specialise in elevating that critical moment with unique Point of Sale design and manufacture at Ripple. We understand the power of the POS environment, from designing appealing displays to creating one-of-a-kind solutions, dedicated to your business. If you want to see more examples of our designs, please view our case studies.

At Ripple, we understand that engaging store experiences are integral to a retailer’s success. The in-store experience is a key aspect of encouraging an in-store purchase. Point-of-sale retail display solutions can be an easy win for retailers who are looking to boost customer engagement in the retail environment.

Our expertise lies not just in creating stands but in curating experiences that captivate, inform, and drive engagement. Elevate your retail narrative with our cutting-edge POS systems, where design meets function and every consumer touchpoint becomes a chance for long-term engagement and brand differentiation. Contact the team that can revitalise and reimagine the simple point-of-sale.

January 24, 2024

is point-of-sale merchandising important in retail?
Let's chat.

More Blog Posts

a pop-up shop designed by Ripple. Ripple are a leading creative shop design agency who know all about how to open a pop-up shop

How to Open a Pop-Up Shop

Despite the rise of online shopping, the desire for human interaction and tangible experiences with a brand remains steady.  Some consumers have become detached from the businesses they purchase from, reducing the chances of a

Read More »
Let's chat.
Contact info.
How can we help?

Contact the team at Ripple to learn more about how our end-to-end design and manufacturing solution can revitalise your businesses interior spaces.

Main Menu

Get in touch

Find us

Let's chat

Get in touch

Let's chat

Find us

Book a free Consultation.

Whether you’re looking for a new partner in design or manufacture, or if you’d just like to chat about a concept or idea, our team is on hand to help.