The Power of POS Data in Retail in Improving your Store Design 

Introduction

In a recent study here, big retailers were asked what they wanted from their data; the big two responses were 62% said merchandising and 60% marketing. 

To do this, you need an appealing and well-organized store in today's retail environment.

Your Point of Sale (POS) data can help improve a store's layout and merchandising in this regard, just like them.
Identifying and using your POS Data

Rely heavily on your POS data to understand your clients' purchasing habits.

Using your POS data, you can highlight your best-selling items.

Go to the top N stock report, which you can find in the Register reports.

We then put in a period, say the last two months; this will show you what is selling now. Then when you have your list of best sellers nicely ordered by quantity, profit and sales.

Take note of top colours and sizes.

Also, consider making them more visible through lighting and signage.

Review what items you sold last year

What worked last year often works this year.

Use the above report with this period, last year.

Look at your merchandise that should be move 

One-way retailers can use POS data to improve store layout is to move merchandise near products often purchased with it, so we look at your items that sell well with other items

Go to Sales-Register > Dissection Companion Sales by Period.

Try looking for an abnormally high number of products for other stuff that sells well with that department. It is beneficial as it can help you select a product to display near a department prominently. This is a well-known method of increasing incremental sales that all majors use.

You take items that sell well with what products of another department and place some of them in that other department's area. There is nothing wrong with a good seller having a few spots in the shop. 

Like this one, a stand of good sellers in a prominent position is always good.

As you can see here (green arrow), there are quite a few extra sales that could be made by moving some other companies' chocolates close to Darrel Lea Chocolates. Darrel Lea may not like it but ....

Another great use is more long-term. If grouped by department, you can get a feel of where you should position the display for the department. As you can see here by the green arrow, the books should be close to the stationery.

You may be able to pick up a few extra sales if people looking at your book can see your stationery too. 

These metrics can give you insights into which products to display prominently.

Regular reviews

To use these reports to keep up with the preferences and trends of your customers and watch shifting conditions you need to run these reports regularly - consider monthly.

Conclusion

For success in the retail industry, it is essential to keep abreast of shifting customer preferences and trends and continuously improve store layout and merchandising strategies.

You can only have a successful store layout if you regularly track your current situation. It is impossible to overstate the significance of adaptability and continuous improvement in-store layout and merchandising success.