How to Sell General Merchandise: The Winning Strategy for Retailers

In 1992, the total sales of general merchandise products amounted to $247 billion, which was already a substantial amount, but then, in 2023, the general merchandise market was worth almost $874 billion. Demand for general merchandise is on the rise. While this market is certainly not easy to enter, it is by no means impossible to succeed with the use of process organization and special software that can do wonders for profits and sales organization.

Key Takeaways

Selling general merchandise requires the right mix of assortment, display, and pricing.

• Group related items to raise basket size. 

• Highlight new or seasonal products. 

• Rotate inventory to avoid stagnation. 

• Use targeted promotions. 

• Monitor performance by SKU.

General merchandise is any type of everyday goods (except groceries and food) sold by stores. The general merchandise group includes many types of products: household items, clothing, electronics, toys, home decor, sports equipment, tools, and much more.

These stores can include supermarkets, department stores, discounters, and other types of general stores, such as Walmart in the US or El Corte Inglés in Europe.

Is it profitable to sell merchandise in a department store, and how beneficial is the concept of general merchandise in general? Let's dive in.

• A broader customer base and the possibility of additional purchases (emotional, unplanned).
• Building loyalty to the store if it provides customers with everything they need in one place.
• Great opportunities for cross-selling, which at the same time increase store revenues and customer satisfaction.
• Market trends can be reflected with ease. General merchandise retailers can afford to devote a large section to fashion or seasonal items, which is much harder for highly specialized stores to do.

• Brand positioning becomes challenging if the store sells everything from razor blades to microwave ovens. Therefore, it is necessary to focus on a unique value proposition.
• The market is very competitive and full of large chains that provide wholesale general merchandise, as well as supermarkets and international companies. The bar for entry may prove too high for small businesses.
• You need staff with versatile experience. Conventionally, a general merchandise seller is a person who can advise in detail on the selection of shoes for a child as well as help choose a multimedia system.

The secret of reaping all the benefits and facing none of the drawbacks lies in the correct organization of all processes, from preparing for sales to putting general merchandise on the shelves. Let's talk about it in greater detail.

As we have already mentioned, in a highly competitive and difficult positioning environment, it is essential to understand which target audience to target. Therefore, market research is a must. It will help you understand what you should offer to customers: for example, the lowest possible prices or fast entry and exit.

Have you ever noticed that general merchandise stores are located in high-traffic areas? These are either busy streets or areas near cities with convenient access and ample parking.

On the other hand, if you sell through an online site, make sure that the design of the main page is recognizable and that the name is simple. That said, don't forget about fast loading and compatibility with any browser as that equals a high-quality location.

Having researched the market and the preferences of potential customers, you need to choose the general merchandise your customers need, be it clothing, food, or other items.

At the same time, consider the size of your retail space and warehouse storage capabilities. How can you avoid miscalculating at the planning stage? Simple, use special software.

Large general merchandise stores have relationships with hundreds of suppliers, buy in bulk, and can set cheaper prices. Obviously, it will be difficult for you to achieve the same at the start.

You need a reliable and constant supply of products, so find as many manufacturers and wholesalers as possible and choose whom to work with.

General merchandise needs to be organized to increase sales efficiency. Items that are properly divided into groups and categories like clothing and food types can be found faster by customers. This increases the likelihood of a purchase.

You need to identify high-margin merchandise and place them correctly. The obvious choice is to put them on the shelves at eye level. The shelf itself should be placed on the far right wall (the so-called "power wall"). This is where most customers always head to first in stores. They will then walk through the entire sales area in search of popular items, which increases the likelihood of additional purchases.

When selling online, retailers need a simple structure, high-quality product pages, and videos with reviews on what you're selling.

General merchandise often fluctuates due to trends and seasonal changes. To ensure a timely item rotation, it is worth using shelf planning software.

Modern platforms based on artificial intelligence and machine learning significantly optimize the processes of organizing general merchandise sales.

LEAFIO Inventory Optimisation software provides autonomous demand forecasting, planning and timely stock replenishment, and order automation.

LEAFIO Shelf Efficiency provides a guided approach to building shelf plans: micro and macro space management, automatic shelf plan generation, easy performance tracking, and advanced analytics. With this software, you can build an effective sales space regardless of the season.

LEAFIO Assortment Performance will help you make data-driven decisions and ensure consistent and accurate category management. Detailed statistics are another advantage.

The applications work as a single ecosystem with mutual data exchange. Schedule a consultation with LEAFIO AI experts today to create a comprehensive merchandising management system.