Merchandising and stocking are essential tasks in virtually any retail business. Effective merchandising techniques prevent a haphazard arrangement of goods that can hinder sales, while efficient stocking procedures ensure the merchandise is always available for customer purchase. While the merchandising and stocking functions are closely related, there are also some key differences between the two.
Merchandising Identification
Merchandising is a retail marketing process entailing the visual displaying of goods as well as product selection. Merchandising involves determining the proper product mix for the store, the shelf position of each item and creating and building attractive displays and signage. Merchandising also includes the creation of special promotions and pricing. When done effectively, merchandising serves as a type of "silent salesperson," as it draws customers to merchandise and displays, often leading to purchases.
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Stocking Identification
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Stocking is the process of filling the store's shelves and displays with merchandise for sale, commonly referred to as "stock." Stocking can also refer to the process of replenishing and storing goods in the store's backroom or warehouse. Store employees known as stock clerks are responsible for keeping the shelves full in their particular departments and reordering merchandise when supplies run low. In larger retail establishments, stock replenishment occurs with the aid of an automated inventory management system.
Relationship
Store management's merchandising policies and practices largely determine the stocking needs of a retail establishment. For example, in a clothing store, if management decides to run a sale on a new line of summer fashions along with creating a special display, store personnel will likely need to order extra merchandise and ensure the display remains fully stocked during the promotional period. If grocery store management decides to carry a new product, stockers need to place the item in the appropriate shelf location.
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Job Duties
From an employment perspective, stocking duties are more physical in nature while the merchandising role requires more analytical and creative abilities. Stockers spend much of their time transporting and lifting merchandise while in the process of filling shelves and building displays. The merchandising role requires the analysis of sales data and trends, such as when determining what items to carry or to put on sale. Creative ability is helpful for thinking of innovative and profitable ways to display products.
