Merchandising Successful Sales Racks

Merchandising Successful Sales Racks

No retailer likes discounting products, but if you have tried everything to clear a particular line of stock and the product is still taking up precious floor space, you need to make the decision whether that space is best devoted to high margin items.

Yes, everyone wants to sell the newest, highest margin stock first, but having old lines of stock taking up room on your clothes racks for months on end is not good for business. The longer old stock lies around the store, the older and less appealing it looks, especially if you have regulars who see the stock every day or a few times per week.

So, what is the best way to clear this product in a timely manner, while still keeping the highest margin possible?

Read on to find out!

Appropriate Sale Signage

big sale in redShoppers come in many different forms.

Some are looking for the newest, hottest product that has just landed instore. Others will head straight to the sales racks and start rummaging!

It should be obvious which area is on sale, so using appropriate signage is paramount. Use signage on racks, aisles or overhead to clearly show the customer where the sales section is.


Sale Stock – To the Front or the Back?

I honestly believe this is a grey area, and there really is no wrong or right answer. It will all depend on what kind of shop you are, what your clientele is like, whether you are using the sale rack to entice customers into the store, even the time of year makes a difference!

During typical ‘sale’ times, such as Boxing Day or End of Financial Year Sales, I think it is acceptable to have sale product at the front of the store. Customers who come out shopping on these days are generally looking for bargain buys, not full priced product, so make it easy for them and have it at the front of the shop! Plus, there is nothing to inspire excitement among other bargain shoppers than to see a group of women buzzing over a sales rack at the store entry, it’s like free advertising.

Other retailers could argue that having the sale items at the back of the store is a better strategy, because customers have to walk by all the full priced product to get to the sale product, which might inspire an impulse buy – in a similar way to supermarkets stocking their milk at the back of the shop. To each their own – if you are unsure which one will work for you, try both strategies and see which one results in a better day of sales!

Keep it Neat

Yes, we all know sales racks are notoriously messy, but this mess can turn customers off, and can also cheapen or damage the product, especially if it ends up on the shop floor.

Some of the best and easiest to navigate sale sections I have seen have all products in size order using sizing discs, rather than style. In other words, all Size 8’s grouped together, all Size 10’s together, and so on. This way, a customer can see clearly what you have available in their size, and can also avoid the time consuming question ‘Can you check out the back if you have this in my size?’

discount pricing listUse a discount strategy that is easy to understand

Avoid having various sales offers available such as a ‘2 for $x’ deal, some as 30% off and others as a straight price point.

Choose one and stick to it.

If you opt for a % off, it can be handy to display a discount chart like the example to the left, otherwise A4 signage or sale banners to advertise offers is ideal.


Consider Online

This is where sales avenues such as eBay, Gumtree and Facebook Marketplace really come into their own, especially if you do not have the room on the sales floor to fit both full price and sale stock. Everyone visits these websites for a bargain – so let’s give them one!

Ebay logoIf you have never used these avenues before, never fear, there is plenty of online help available. A simple google search will offer help such as this.

There are also plenty of You Tube tutorials available if you need extra assistance online.

Yes, it is disappointing when stock needs to be discounted, but with the right sale strategy you can still achieve the best margin possible.

Happy Selling!

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