Merchandising performance is a key driver of retailing success. In some ways, merchandising is an art: retailers use their experience and intuition to spot trends and select merchandise accordingly. But merchandising is also a science. By taking a disciplined, analytical approach to merchandising, retailers can place the right products in front of the right customers at the right times, leading to growth in revenues and profits.

End-to-end approach
McKinsey has worked with a broad range of retail clients – including department stores, specialty stores, direct mail houses, and discounters – to help them achieve a competitive edge through improved merchandising. Our experience across channels has demonstrated that merchandising is closely linked to other retail elements including strategy, concept renewal, in-store experience, supply chain, and marketing. We help clients by providing a true end-to-end approach that integrates all the elements of their business.

Unlocking the value
Leading retailers have shown that effective merchandising can drive dramatic top- and bottom-line improvements through increases in sales revenues, significant gains in gross margin, and hefty reductions in inventories. However, unlocking the potential value in the merchandising function requires deep expertise. We bring significant experience in the full set of merchandising activities, including category strategy, visual merchandising, vendor management, supply chain management, in-season management, and pricing.

Building client skills
We use a pragmatic approach to help clients achieve short-term results while building the skills to ensure long-term impact. We work with our clients across their organizations, from senior executives to merchants to store personnel, to tackle merchandising issues through an integrated process, systems, and organizational change program.