Retail Merchandising Optimization
In-Store Merchandising | Promotional Ad Space | Sales
Goal: Maximise the sell-through of key in-house and third-party products by redesigning prominent retail display areas. Including six vendor-branded podiums in high-traffic zones and a fully merchandised backwall featuring curated product placements, organized by brand and category.
Customer Flow Optimization
Merchandising placements were mapped based on IDEAL customer foot traffic, sightlines, and category heat zones. The six podiums were positioned at key decision points within the retail space, each dedicated to a vendor partnership or a rotating product feature. The backwall was merchandised to guide browsing from high-margin in-house SKUs to trending third-party offerings.
Sales representatives were instructed to follow this floor plan when engaging with guests to drive conversions on homebrand SKUs and sponsored third-party products. Following the red line from check-in to the register, guests first encountered Flower Row. (live product display featuring fresh flower rotated weekly for guests to inspect and smell, ensuring quality and freshness) Next, they would stop at vendor podiums equipped with high-top tables, where sales representatives engaged them in conversation to understand their preferences and needs. As the pair progressed through the floor, they interacted with multiple homebrand and sponsored spaces, ending with a final pass by Flower Row, and would then exit with a goodbye from the front deck attendant.
Vendor Collaboration & Branding Execution
Each month the marketing team was responsible for selling six third-party vendors to co-develop podium branding, compliant signage, and product display plans. Each podium featured vendor-provided educational content, various brand SKUs, and promotional materials aligned with current campaigns. Internal merchandising guidelines were created to ensure visual consistency and compliance.
Vendors also had the opportunity to purchase a portion of the back wall of the dispensary to have exclusive space in the retail location. Purchasing the back wall would also include a digital marketing package meant to leave guests with a lasting impression of the sponsoring brand.
Sales Performance & Impact Metrics
Products displayed on podiums saw an average sales lift of 7% compared to the prior merchandising format, with podium-featured SKUs outperforming similar products in non-featured zones. The backwall contributed to increased dwell time and a 15.5% uplift in units per transaction for highlighted product categories. The merchandising space of the wall and the addition of the digital media accounted for nearly double the ROI as compared to the podium and non-featured SKUs.
The revenue from the Vendor Visual Merchandising program added an additonal 12% to the montly marketing budget, allowing for a reliable source of additional budget to be spent from month to month.
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