Trends in merchandising:

what will change in the next 5 years?

Merchandising is not just the art of arranging products attractively on shelves; it is a science that influences sales, customer loyalty, and brand perception. In recent years, technology and changes in consumer behaviour have radically transformed retail. What once seemed like established rules in merchandising is now outdated, and new trends are already setting the stage for the future.

How will the approach to product display change over the next five years? What trends will shape retail success? In this article, we will discuss the key changes that are already defining the future of merchandising. Technological innovations, automation, and shifting consumer preferences are not just buzzwords but real changes that require the attention of retailers and manufacturers.

Technology is becoming the main driver of change in merchandising. Today, companies are increasingly using artificial intelligence (AI) and big data solutions to improve product placement and optimise store operations. In the next five years, these trends will only strengthen, and manual merchandising management will become a thing of the past.

• One of the key innovations will be the automation of planograms. Software solutions, such as AI-based systems, will be able to analyse not only sales history but also customer behaviour in stores to suggest the optimal product layout. Algorithms will take into account a wide range of factors, from seasonal demand fluctuations to the time products spend on the shelf.

• The Internet of Things (IoT) technology will also gain prominence. For example, smart shelves with sensors will transmit real-time data on product quantities. This will help avoid stock shortages and prevent overstocking. Such systems will not only save staff time but also improve the accuracy of product placement.

• Another important innovation will be the use of virtual and augmented reality. With these technologies, it will be possible to model product displays digitally, analyse how customers interact with products, and choose the best solutions without the need for physical rearrangement.

Consumers increasingly value a personalised approach, and this is influencing merchandising. Generic product displays are being pushed aside in favour of personalised solutions tailored to the needs of specific audiences. In the coming years, this trend will only intensify.

• Modern analytics systems allow companies to gain deeper insights into customer behaviour, identify their preferences, and adapt merchandising based on this data. For example, stores can offer special shelves with products that appeal to particular audience segments, such as health foods, eco-friendly items, or sports gear.

• It is also important to consider local specifics. Different regions have their own preferences, and a standardised approach to product display does not always work effectively. Merchandising software can offer unique planograms for each store depending on its location, customer base, and even the season.

• Personalisation also manifests in the use of digital screens, which can display relevant offers for specific customers. Interactive displays can adjust to individual interests, for example, by providing recommendations based on purchase history or demographic information.

Sustainable development is not just a trend but a requirement for many brands. Consumers are increasingly choosing companies that care about the environment, and this is changing the approach to merchandising. The next five years will show how this trend will affect product displays and store design.

• First, it's about waste reduction. Retailers will increasingly adopt solutions that minimise the use of plastic and other non-eco-friendly materials in product displays and packaging. For instance, more stores are moving towards reusable display solutions or using recycled materials for shelf design.

• Second, eco-products are becoming more prominent. Items with "green" labels need to be placed in highly visible locations to attract environmentally conscious shoppers. Merchandising systems will help to highlight these products more effectively, creating special zones for low-carbon footprint items.

• Finally, optimising supply chains is becoming increasingly important. Retailers are aiming for more precise product placement to avoid unnecessary transportation costs and reduce their carbon footprint. Here, software solutions help manage inventory efficiently and minimise emissions by optimising logistics.

With the growth of online shopping, retail is increasingly moving towards an omnichannel approach. Customers expect a seamless experience between physical and digital stores, which puts new demands on in-store product displays. Omnichannel sales are not just about merging online and offline channels; it's about creating a unified ecosystem for the customer.

• Stores will actively use data from online sales to optimise in-store product displays. For example, if a particular product category is popular in the online store, it should also be highlighted in the physical location. Integrating customer preference data from different channels will help create more effective planograms.

• The trend of integrating digital technologies into physical stores will also intensify. This could include interactive screens where customers can browse product offerings, place orders, or receive recommendations based on their preferences. This improves product interaction and makes it easier for customers to find what they are looking for.

• Flexibility will become a key part of omnichannel sales. Customers want to choose how and where they receive their products: order online for home delivery or pick up in-store. This requires retailers to carefully plan product displays to ensure maximum convenience for customers and reduce the time it takes to find items.

Tilda Publishing