4 Types of Retail Merchandise
Retail merchandise is generally categorized into four different types, or classes. Chances are, no matter what kind of retail chain you operate, you specialize in one of these four classes. But you needn’t merchandise your store only with that type of product. In fact, one way to increase your sales and be more competitive is to stock merchandise from each of these categories.
- Shopping Products – Shopping products make up the bulk of retail merchandise. These are the items that consumers want and will spend considerable time researching, testing, and comparing to ensure they find the brand and the model that will make them the happiest. Shopping products can be categorized as consumer products or business products. These easy categorizations simply mean that they are generally in demand among one audience or the other–consumers or businesses. For instance, executive desks are business shopping products because they are usually purchased by businesses, whereas DVD players are most often purchased by consumers.
- Convenience Products – While shopping products may make up the bulk of your inventory, you should also include other types of merchandise. One type of merchandise you should carry falls into the convenience products class. These are products customers can’t live without and that they’ll make a special trip for when they run out or are getting close to running out. Items such as food, hygiene products, cleaning supplies, etc. fall into this category. To increase your revenues, make sure you include convenience products that complement your shopping products merchandise.
- Impulse Products – Impulse products are items that people buy as unplanned purchases. Customers see them, want them, then buy them. Items like magazines, candy and sodas, or health food snacks fall into this category.
- Specialty Products – If you operate a specialty retail store, you’ll stock a lot of specialty products. It will be your primary type of merchandise. However, any retail store can carry specialty items. Try to choose specialty products that complement your typical inventory and customers will spend more money in your store
Merchandising is about choosing the right products to sell and displaying them so that you sell more units. With the right product strategy, you can increase your retail sales, revenues, and profits.