BOSTON – Jan. 7, 2025 – We’ve all been there…
We’re shopping, and the physical state of the store is a mess.
Between the option to shop at numerous competitive retailers or complete the purchase online, when does a consumer simply give up?
How does that shopping experience impact the customer’s future behavior?
Wanting to discover precisely that, GlobalData, an analysis and insights firm, and One Door, a leading provider of visual merchandising software, conducted first-of-its-kind research that measures consumer satisfaction with visual merchandising and its impact on retail sales.
The results were astounding: The monetary cost of store abandonment due to poor visual merchandising equates to US retailers losing $124.5 billion in sales. This deficiency represents 3.3% of annual brick-and-mortar retail sales in the US.
According to the report, 73.4% of surveyed consumers are not completely satisfied with visual merchandising in retail stores they visited within the past year.
Additionally, almost 50% of shoppers walked out of at least one store over the past 12 months due to poor merchandising. The frustration was caused by a dozen merchandising factors, such as hard-to-find products, poor display practices, and damaged fixtures.
“For years, retailers have implicitly understood the linkage between great visual merchandising and sales results, but no one has ever really measured the impact,” said One Door CEO Tom Erskine.
“As retailers look to prioritize their investments, this data will shed light on the potential downside of cutting corners related to the in-store experience.”
The full study is available at www.onedoor.com/resource/poor-merchandising-report/.
One Door is the leading provider of cloud-based visual merchandising software for large retailers. The software helps space planners, visual merchandisers, and store operations teams plan, execute, and analyze in-store experiences to improve sales, increase team efficiency, improve compliance, and more.
GlobalData is an analysis and insights firm. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the retail and consumer sectors. Over 4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis, and innovative consultancy.