Visual merchandising - a silent sales tool

It's all about visual impact

Angel Pharmacy is in an excellent position, with a significant available population. The pharmacy has a thriving prescription business, but front-end sales are low.

To prop up sales, the business stocks household goods such as toilet rolls and cleaning products. The pharmacy counter carries six different display units to encourage customers to buy on impulse, and the manager has encouraged a student who works each Saturday to create displays to enhance sales. There is a large wall space dedicated to gifts and costume jewellery.

The pharmacy owner has tasked the manager with analysing front-end sales and identifying why turnover and gross profit is falling. To appreciate what could be happening, the manager conducts some desk research on the internet. She discovers that the local population has a high level of young families and millennials. Observing her own customer base, she notices that most are older and generally come to in redeem prescriptions. To experience the pharmacy from the customer’s perspective, she conducts a visual merchandising audit. She discovers:

• Poorly dressed windows. Theme never changes. Handwritten and old posters
• Front door covered in signage and old sticky tape residue
• Main aisle end is stocked with cheap toilet roll and household cleaners
• Lighting is dull and some bulbs are not working
• Product is not brought forward and there are several gaps. Numerous boxes sitting on the floor
  30 per cent of goods are discounted
• Old signage hangs from the ceiling, which has water marks
• Pharmacy counter space is cluttered with very little available space for customers to place products onto
• Dump bins are placed all over the store and act as barriers
• The Saturday employee likes art, but has no knowledge of VM principles.

Based on these findings, the manager approaches the owner to agree a merchandising calendar and secure a small merchandising budget. She starts withsimple changes, such as choosing a theme for the window each month based around national healthcare events and seasons.
It is decided to remove cheap toilet rolls and cleaners and stock the aisle end with popular higher margin goods (this changes regularly).

In addition, she extends baby care as a lifestyle section and cross connects products for families. The gift section and cosmetic jewellery ranges are cut. Dump bins are reduced from six to one. Signage is still handwritten but the message is agreed upfront. Lights are checked to ensure that they are working. Customers are starting to comment positively on the changes.
The manager recognises that there is a long way to go including training for employees, but it is a start. When we work in the same environment every day, it is easy to not really see it.