Manufacturers and distributors can work with their retail partners to drive more revenue for all partners in the supply chain are through a practice called cross-merchandising. Cross merchandising is seen in nearly all types of retail, from fashion to grocery, automotive to garden supplies and everything in between to promote brands and drive sales by adding value to the customer experience in the retail environment. An example of cross merchandising in grocery retail would be found on the grocery store end cap: retailers often put a variety of products together that can serve a purpose for the customer.
- Cross merchandising happens when a retailer displays seemingly unrelated items together so customers can find the relationships between them.
- For manufacturers and distributors, cross merchandising is all about taking control of placement and positioning.
- There are several ways for manufacturers and distributors to work with retailers to promote cross merchandising opportunities for their products.
“Cross merchandising can be a way of driving up sales by promoting impulse buys.”