Definition of cross-merchandising

Definition of cross-merchandising

Merchandising plays a crucial role in optimizing sales andenhancing the customer experience. One of the most effective approaches is cross-merchandising. Used in supermarkets, this technique consists of displaying a product outside its usual aisle, close to another complementary item.

By integrating this strategy in the right way, this method not only boosts sales, but also enriches the consumer experience by facilitating cross-buying.

There are different types of cross-merchandising: 

1. Physical cross-merchandising: the strategic placement of complementary products on shelves.
2. Digital cross-merchandising: online product recommendations based on previous purchases or consumer preferences.
3. Promotional cross-merchandising: special offers and combined promotions for complementary products, such as discounts on the combined purchase of two items.

What are the advantages of cross-merchandising?

Increase in average basket

Cross-merchandising is the strategy of placing complementary products together to encourage customers to buy them simultaneously. This approach uses synergies between products to maximize additional sales opportunities. For example, by positioning sauces next to pasta, customers are often encouraged to buy both items together, thereby increasing the average basket value. According to HBR (Harvard Business Review), sales of complementary products can increase by 20% to 40% thanks to an effective cross-merchandising strategy.

Enhanced shopping experience

In addition, cross-merchandising improves the customer experience by simplifying the shopping journey. Finding related products in the same space reduces search time and helps customers discover items they might not otherwise have considered buying. For example, display batteries at the head of the toy aisle. Customers appreciate the convenience of finding complementary products together, which can improve their satisfaction and keep them coming back. A good shopping experience facilitated by effective cross-merchandising helps to strengthen customer loyalty.

Optimizing sales space

Last but not least, this technique enables optimal use of the sales space. For example, by creating dedicated sections that meet specific needs, you optimize the efficiency of the space. A "pizza parties" area, with pizza dough, tomato sauce and cheese, attracts customers looking to organize a themed meal, while maximizing product visibility and accessibility.

Cross-merchandising can also be achieved using mobile units, which can be used to integrate products on a one-off or seasonal basis when the shelf cannot be extended.

Conclusion

Bcross merchandising can significantly increase sales and improve the customer's shopping experience. By understanding consumer needs and making judicious use of sales space, retailers can maximize the impact of this technique. When well executed, cross merchandising offers a substantial competitive advantage in the modern retail landscape.

To find out more, read our article"5 best practices for effective cross-merchandising".

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