Here's how you can assess the results of your strategic decisions as a merchandiser.

1 Sales Data

Sales data is the most direct indicator of your merchandising effectiveness. By comparing sales figures before and after implementing a new strategy, you can get a clear picture of its impact. It's important to consider external factors such as seasonality or economic changes that might also influence sales. Analyze product performance at a SKU (Stock Keeping Unit) level to see which items are performing well and which aren't. This data helps you understand customer preferences and adjust your product mix accordingly.

2 Customer Feedback

Customer feedback is invaluable for assessing the qualitative results of your merchandising decisions. Engage with your customers through surveys, comment cards, or direct conversations to gather insights into their shopping experience. Pay special attention to feedback related to product selection, store layout, and promotional materials. This information will help you refine your merchandising strategies to better meet customer needs and desires, ultimately leading to increased satisfaction and loyalty.

3 Inventory Turnover

Inventory turnover is a measure of how quickly inventory is sold and replaced over a period. It’s an important metric for evaluating the success of your merchandising decisions. A higher turnover rate generally indicates effective merchandising, as it means products are moving off the shelves quickly. To calculate inventory turnover, divide the cost of goods sold by the average inventory value. Adjusting your buying decisions based on turnover rates can help ensure you're not overstocking or missing sales opportunities.

4 Profit Margins

Understanding profit margins is critical to assessing the financial impact of your merchandising strategies. Calculate the gross profit margin by subtracting the cost of goods sold from sales revenue, then dividing that number by sales revenue. This will give you a percentage that represents the profitability of your merchandise. If new strategies have improved margins, it's a sign that you're on the right track. However, if margins are shrinking, you may need to reevaluate pricing, supplier costs, or product selection.

5 Foot Traffic

Foot traffic analysis can reveal how well your merchandising strategies are drawing customers into the store. Use foot traffic counters or software to track the number of visitors before and after changes are made. An increase in foot traffic after a merchandising change suggests that your efforts are attracting more customers. Consider the layout and visual merchandising elements that may be contributing to these changes, and continue to optimize for customer engagement.

6 Conversion Rate

The conversion rate is a measure of how many store visitors make a purchase. It’s an important metric for understanding the effectiveness of your merchandising in driving sales. To calculate the conversion rate, divide the number of sales by the number of visitors and multiply by 100 to get a percentage. A higher conversion rate after implementing new merchandising strategies indicates that your changes are not only attracting customers but also compelling them to buy.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?