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Having displays in retail settings is an effective way to sell products and organize a storefront. Retail displays can be as simple as brochure holders or as elaborate as pop-up displays. Mannequins that wear clothing in a clothing or department store also fall under the category of retail displays.
In the retail world, there are hundreds of different competitors for consumers to choose from. Using retail displays to organize a store and display a product effectively is one of the best ways to set yourself apart from your competitors. There are many benefits and a few pitfalls to purchasing displays for retail settings.
Benefits of Using Retail Displays to Sell Merchandise
Retail displays can help to increase your bottom line in a cost-effective manner. Some examples of retail displays include mannequins, brochure holders, pop-up displays, and other display kits.
Using retail displays can increase your sales. According to Point of Purchase Association International, approximately 60 percent of in-store sales are attributed to retail displays. In order to be especially effective, you should place the retail displays in prominent locations with a lot of traffic, such as the end of aisles and by the checkout stands.
Most retail displays are colorful and contain graphics that add depth to the space. These factors attract a customer’s attention. Some retail displays include a sense of mystery that makes the customer want to check out the items on the display. If your retail display is a mannequin or another clothing display, make sure that you use vibrant colors, the smallest size available, and matching accessories to bring the display to life.
Retail displays make the area of your store look neat and organized. This makes it easy for your customers to find the items they need and want. When you are placing items on the display, try to put the most expensive items at eye level. This space is considered premium space. In the space above the eye-level area, place the second expensive item, and put the least expensive items on the bottom of the display. For some retail displays, this isn’t possible, as the slots in the retail display are pre-marked and priced for items.
Some retail displays are provided by manufacturers who want their items marketed a certain way. These types of retail displays are the most cost effective. However, when you consider the increase in sales from using the displays, the cost-per-item is likely going to be minimal, and over time will dwindle to nothing. Once the display is paid for, there isn’t any cost-per-item for the display.
Pitfalls of Using Retail Displays
While using retail displays can increase your sales, there are some pitfalls to consider before you start setting them up. The exact pitfalls will depend on the ambiance in your store, the type of display and the products being put on the display.
Clash with Décor
There are some instances when a retail display will look out of place in your store. If your store features a subtle decorating style with muted colors, a vibrant retail display will clash with your décor. By the same token, an earth tone display wouldn’t look appropriate in a retail store that features a bright color scheme.
Takes Up Valuable Space
Some retail displays, especially those from product manufacturers, are large. While these displays do draw attention to the products on them, the displays often take up a lot of valuable space. If your store is large, you may not notice the space. In a small store, however, a large display will take up too much valuable space, and you may have to move other items to a storage area or try to squeeze them into the remaining space to accommodate the display.
If you opt to put a retail display for one item in your store up without doing the same for other products, customers may assume that you are endorsing the products on the display. While this may not be a cause for concern for some retailers, for small operations or stores that are belief-based, endorsing any product may make your customers look for a new store to frequent.
Bright, vibrant and large retail displays may be a little too pushy or overwhelming for some clientele. When it comes to retail displays, finding a balance between marketing the products and keeping your customers happy can come down to something as simple as the location of the retail display. Try not to place overwhelming and pushy displays right near the registers. By doing this, you balance out marketing throughout the store. The impulse buy items are near the registers and the retail displays are across the store.
The retail business is a competitive industry and knowing the dynamics of that industry is important if you plan to open your own store. Retail display is an important part of your business, as it gives you an opportunity to present and promote the product you sell. Retail stores play a huge part in the economy, with consumer spending accounting for 70% of the U.S gross domestic product in 2011, according to Reuters.
How you want your shop to look is up to you, but your finances will affect your decision. If your store needs a lick of paint and new flooring, you are looking at a relatively low-cost start-up. If you want new floors and wooden displays and counters, the costs will be much higher. Depending on the condition of your shop, a refurbishment can be as little as $1,000 to as much as $100,000.
Fixtures and Fittings
Items such as display cabinets, racks and sales counters can be bought secondhand or through an auction house as a job lot. A refurbished cash register will do the same job as a brand new one for a fraction of the price. A multi-featured refurbished register can cost as little as $150.
As you can see above, there are many different reasons that a retail business may choose to purchase display equipment. For a reasonable cost, retailers can organize their storefront and make their store more visually appealing. Having an organized store has been known to lead to an increase in sales. Customers are also happier to return if they are able to shop in a store that is easy to navigate and they don’t have to waste time trying to find what they are looking for.
The cost of purchasing retail displays can vary greatly depending on how many displays you are looking to purchase. However, purchasing retail displays and organizing your store can have such a positive effect on sales and customer opinions that it is easily worth the cost.
One of the most effective ways to draw customers to your place of business is by utilizing the power of your retail display. From conservative to funky to thought provoking, the only limit is your imagination.
The first principle of an effective retail display is to showcase the products that will most appeal to your target audience. Don't save the best for last; lead with it, and find ways to creatively present your merchandise in a manner that enhances both the item and the emotional appeal to your customers. This can be achieved through a variety of methods such as lighting, color, texture, focal point, and placement. A good rule-of-thumb is to arrange your retail display at eye level. Most people do not look up or down when they shop-they look straight ahead. Catch their gaze by placing your merchandise where it is sure to be seen.
If you are artistic, you can make your own retail display by incorporating any number of materials, but creatively-challenged types may choose to depend upon retail supply stores for ideas and ready-made units. Even when using standard display equipment, you'll want to make sure that your product is effectively presented in an appealing way.
Your retail display is a crucial component of your marketing strategy. Be sure to reference Business.com for additional ideas and resources.
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