Walk into any retail store, supermarket, or even a gas station, and you’ll see point of sale (POS) merchandising at work. It’s those tempting displays near the checkout counter, the last-minute add-ons, and the strategically placed products that you never planned on buying but somehow end up purchasing anyway. This isn’t accidental; it’s a well-crafted strategy designed to boost sales.

In this article, we’ll explore what POS merchandising is, why it works, and how businesses can use it effectively to increase revenue.

What Is Point Of Sale Merchandising?

Point of sale merchandising refers to the strategic placement and promotion of products at or near the checkout area to encourage impulse purchases. It leverages consumer behavior, convenience, and visual appeal to increase sales of specific items. This strategy is common in retail stores, grocery chains, pharmacies, and even online platforms that use digital checkout recommendations.

At its core, POS merchandising is about capturing customer attention at the final moment of their shopping journey. By presenting attractive, easy-to-grab products in high-traffic areas, businesses can significantly boost their bottom line.

Why Does POS Merchandising Work?

There are several psychological and strategic reasons why POS merchandising is so effective:

1. Impulse Buying Behavior

Many purchases made at the point of sale are unplanned. A study by CreditCards.com found that nearly 84% of consumers make impulse purchases, often due to clever product placement and appealing packaging. POS merchandising taps into this tendency by offering small, inexpensive, and frequently needed items within arm’s reach.

2. Convenience Factor

POS displays usually feature products that are useful, forgotten essentials, or small indulgences. This makes it easy for customers to justify adding them to their purchase. Think about the gum, batteries, or lip balm you’ve picked up while waiting in line.

3. Cross-Selling Opportunities

POS merchandising allows retailers to cross-sell complementary products. For instance, a bookstore might place bookmarks and reading lights near the checkout, or a coffee shop might display gourmet chocolates and reusable cups.

4. Limited-Time Offers & Urgency

Promotions like “Buy One, Get One Free” or “Limited Time Only” at the checkout counter create a sense of urgency, prompting customers to act quickly. Shoppers fear missing out on a deal and are more likely to make impulsive decisions.

Effective Strategies For POS Merchandising

To get the most out of POS merchandising, businesses should focus on a combination of strategic product selection, visual appeal, and customer psychology. Here are some key strategies:

1. Choose The Right Products

Not all products are suited for POS merchandising. The best items are:

• Low-cost, high-margin products (e.g., snacks, small accessories, travel-sized toiletries)
• Seasonal or trendy items (e.g., holiday-themed gifts, fidget toys)
• Essentials that shoppers often forget (e.g., phone chargers, hand sanitizers)

2. Optimize Placement & Visibility

• Place high-margin, attention-grabbing items at eye level.
• Use clear signage with compelling messages like “Customer Favorites” or “Best Sellers.”
• Keep the area organized and uncluttered to ensure maximum impact.

3. Leverage Technology For Digital POS Merchandising

• Digital screens can display promotions, product demos, or loyalty program offers.
• Online retailers can implement AI-driven “Recommended for You” sections at checkout.

4. Rotate Products Regularly

Keep the display fresh by changing featured products weekly or seasonally. Customers who frequent your store will notice new items, making them more likely to purchase.

5. Bundle Products For Added Value

• Offer combo deals (e.g., “Buy 2, Get 1 Free”).
• Pair related products together, like phone accessories and screen protectors.

Real-World Examples Of POS Merchandising Success

1. Grocery Stores

Supermarkets master POS merchandising with candy racks, small toys, and magazines at the checkout. They understand that customers waiting in line are likely to pick up a snack or an interesting read while they wait.

2. Coffee Shops

Big brands like Starbucks place grab-and-go snacks, branded mugs, and coffee beans near the register, capitalizing on the last-minute decision-making of their customers.

3. Clothing Retailers

Stores like H&M and Zara place small accessories, travel-size perfumes, and gift cards near the register, leading to higher sales per transaction.

4. Online Retailers

Amazon’s “Customers Also Bought” and “Frequently Bought Together” sections function as a digital version of POS merchandising, increasing add-on purchases.

Maximizing Your POS Merchandising Strategy

Effective POS merchandising isn’t just about putting random products at checkout; it’s about understanding customer behavior, selecting the right items, and creating a visually appealing, convenient shopping experience. Whether you’re running a brick-and-mortar store or an online business, strategic POS merchandising can significantly increase your average transaction value and overall sales.

If you haven’t already optimized your POS area, now is the time to start. A well-placed display and thoughtful product selection can turn your checkout counter into one of your most profitable spaces!