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January 20, 2025

What Are the Best Ways To Increase Sales in a Physical Retail Setting?

The brick-and-mortar retail experience has transformed significantly over the years, moving from mechanical cash registers to advanced digital points of sale. These technological advancements have not only reshaped how stores operate but also introduced cultural shifts that directly impact employees working in retail locations.

While certain aspects, like the importance of politeness, expertise, and cleanliness, have stayed relatively consistent, other norms have shifted and redefined expectations.

So, what are the best ways to increase sales in a physical retail setting in 2025?

The Greeting, or Lack Thereof, Can Make or Break a Retail Sale

It’s important to make contact with each customer who enters the store.

“Generic greetings like ‘Can I help you?’ may appear insincere. Instead, personalize your approach with a friendly opening like, ‘Hi there! Welcome to [store name]. Let me know if there’s anything I can assist you with,’ Shopify recently suggested.

While Shopify’s suggestion is helpful — the only thing worse than a non-greeting or being ignored is a highly generic greeting — it could also face at least light criticism. Most customers are already aware of the shop they’re visiting or browsing, so mentioning it by name could come off as stilted or forced. Appearing to read from a preloaded script can also be a turn-off for today’s increasingly savvy and critical customer.

“Tailor your greeting if they’ve shopped with you before: ‘It’s great to see you again! How’s that [product] you bought last time working out?’ Shopify continued.

This approach may sound good on paper, but there are two potential pitfalls: One, unless that particular associate has dealt with that particular shopper before, it could come off as potentially intrusive — or even the cause of open discomfort. Two, even if associates are equipped with a comprehensive omnichannel array of information about customers they haven’t dealt with before, this can come off as inauthentic and inorganic.

However, Bob Phibbs, The Retail Doctor and a RetailWire BrainTrust member, spoke to the importance of greeting every customer in a similar fashion. Speaking to a potential introverted salesperson as a hypothetical, Phibbs emphasized the point.

“Well, introvert, retail is not about what you want. It is about what customers want. Leaving the shopper alone costs your company big money. 80% of customers never return to businesses due to perceived indifference from staff. 80% want to be noticed. 100% want a friendly greeting,” he wrote.

“Greeting anyone with ‘Good afternoon, welcome to (your store name) feel free to look around, and I’ll be right back’ is not pushy. It’s good manners and the first step to making a successful sale. Doing it within 15 seconds is the best (that’s not that long — try counting as you walk into your store),” Phibbs concluded.

Active Listening Is Key to Further Retail Sales

Something almost all experienced salespeople and retail analysts can agree on: Active listening is key to developing a sale, whether that sale happens to be transactional or based on the principles of relationship selling.

Shopify noted three key points in the approach to active listening that frontline retail workers should abide by:

  • Never pose a response while the customer is speaking: Simple enough — don’t interrupt the customer. It may be wise to formulate ideas, suggestions, or pertinent questions while the associate or manager is listening, however.
  • Engage via body language: Generally speaking, it’s best to avoid getting too close to a customer. With that being said, avoid crossing arms or leaning back, showing disengagement or disagreeableness when listening to a guest.
  • Summarize what the customer said before continuing: This can be as simple as repeating a one-sentence debrief of what the customer has just said before proceeding. Size concerns, flavor preferences, timeliness considerations, price points, and more can be part of this restatement.

While many of the above mirror foundational concepts key to another active listening procedure, mediation, it’s also important in terms of leveling with a customer. These are lynchpins that have stood the test of time on the sales floor for decades but may be especially important in an era where many interactions take place via screen, rather than face-to-face.

However, what is left off the table is the importance of training salespeople to dig deeper, particularly through product knowledge and actual empathy, to offer suggestions that not only benefit the company’s bottom line and their own personal sales figures but also perfectly suit the needs of the customer. Such an approach is the basis of another key retail concept: authenticity, or honesty.

Managers might be receptive to the idea that an engaged and attentive associate is one who is not only actively listening as a job requirement, but one who is also actually actively concerned with the customer’s outcome on a person-to-person level outside of their job description. This can be hard to curate, but is worth consideration.

The question remains, how do you close the sale, and ensure repeat customers? Merchandising is perhaps the unspoken ally of every sales associate.

Retail Merchandising Makes a Huge Impression on Newcomers and Loyal Customers Alike

Merchandising is a cornerstone of the brick-and-mortar retail experience. Untidy and unkempt stores with a great deal of clutter can confuse guests, making navigation of the store a hassle — and a hassle-free experience is necessary for longevity in this space.

As Merchandising Consultants Associates underscored: “Today’s customers expect more than just products on a shelf. Customer satisfaction is more a matter of the experience than the products. When a store is thoughtfully merchandised, it shows. The products are easy to find, the displays are engaging, and the overall flow of the store feels intuitive. This kind of environment can encourage customers to spend more time in the store, which often translates to spending more money.”

When it comes to merchandising, multiple millions of dollars are spent on the psychology and social engineering of today’s store layouts. Despite this, a lack of staffing at the store level combined with an influx of excess product — oftentimes, there’s no room in the receiving area to put trucked-in wares — can contribute to a growing epidemic of retail clutter, particularly in larger outlets.

A clean and tidy store with merchandising selectively placed under correct lighting, on proper fixtures, and with accurate signage is, of course, the ideal. Floor workers benefit by being able to pull desired product immediately to display, customers benefit by being able to find the category they are searching for, and the brand looks all the better for it by leaving a lasting impression of professionalism and a certain cache in being a cut above.

As the retail business transitions to a hybrid model wherein online sales, shipped from faceless storefronts and warehouses, are of equal importance (at least in some cases) to in-store sales, how important is it for a retailer to maintain its physical presence? And if a brand decides to operate tens, hundreds, or thousands of physical retail hubs, how can they ensure frontline associates and managers are performing at their best?

These, and other questions, form the basis of a business in flux.

Discussion Questions

What aspects of the shopping experience, other than those covered, are most important to the contemporary retail customer?

Are frontline retail workers, in your experience, too disengaged, too forward, or on-point when it comes to servicing customer needs in 2025?

How important is merchandising to physical retail sales success?

Poll

22 Comments
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Neil Saunders
Neil Saunders

The best way to ensure sales are made is to provide an orderly and well-run sales floor. A poor selling space loses retailers billions. Out-of-stocks lose retailers further billions. Both things come down to good operational control. Once the basics are there, inspiration and excitement – from merchandising, good buying, and so forth – can help drive incremental spend. These things are retail 101, but it’s shocking how many retailers don’t get them right! 

Bob Phibbs

I am baffled why you chose to cite Shopfiy for how to increase sales in a physical store. While I appreciate the mention of me, these are some of the most generic tips around. Why is it so many retailers spend millions chasing increased conversion in online but ignore the fact people don’t enjoy shopping in their stores? Because raising sales in store requires having a gold standard of what success looks like, training it in an interactive way that requires the brain to focus and fail, it has to be repeated, practiced and the learners held accountable to actually do it. Anything else is like these generic tips – unlikely to be used and soon forgotten. If you’re serious about investing in your people DM me.

Cathy Hotka
Cathy Hotka

There just aren’t enough retail salespeople. Chronic under-staffing results in both poor customer service and theft.

Georganne Bender
Georganne Bender

When it comes to sales training, I am giving it to Bob Phibbs. He lives sales training every day. Now merchandising, that’s my playground.

Merchandising is a lot more than a “neat and tidy” store. It is both an art and a science, although these days we tend to talk more about the science, as in technology.

A good merchant can take a pile of nothing and finesse it into a meaningful display. Techniques like cross-merchandising, featuring products that can be used together to entice shoppers to buy more than one item go a long way to increasing sales. There are plenty of visual merchandising techniques available to grow sales but I rarely see them utilized in chain stores.

Good merchandising requires planning and thought. It also requires merchants who are allowed to tweak corporate planograms to make them work for their unique stores.

How important is merchandising to physical retail sales success? Take it from a merchant, it’s far more important than magic mirrors and digital signing.

Last edited 9 months ago by Georganne Bender
Craig Sundstrom
Craig Sundstrom
Noble Member

Kind of sad, isn’t it, that we would need to treat what seems like basic selling as some kind of revleation ? RetailWire > RemedialWire.

Ananda Chakravarty
Ananda Chakravarty
Active Member

Spot on!

Karen Wong
Karen Wong

Increasing sales and increasing profitability are two different things. For physical retailers, the emotional experience of in-person shopping is the key to sales optimization. This is often a combination of making the sensory/discovery part of the experience as memorable as possible and making the checkout experience as frictionless as possible. This means merchandising products in ways that encourage cross-selling to increase basket size, that slow the shopping experience and encourage physical engagement (touch, smell or taste), well-trained sales staff, easily accessible product information (e.g. labels linking to website descriptions), and technology that makes it easier for shoppers to checkout and track sales history for returns.
Yes, having the right products and the right staff will always help. But with shoppers as knowledgeable as they are today, making it easier for them to make decisions, faster for them to take their purchases home, and making them feel like they are making great decisions has always been what differentiates good retailers from great retailers to me.

Jeff Sward
Famed Member
Reply to  Karen Wong

You make a great point about how much smarter customers are these days when they walk through the door, as opposed to just a few short years ago. That changes the dynamic on the sales floor.

Oliver Guy

Some great advice here but culture also plays a part. I have often felt when shopping in the USA that store associates pounce on me – versus a much more reserved approach in the UK.
Clean stores, nice lighting, music that is not too loud, changing rooms that are tidy, appropriately lit, easy to use, and provide somewhere for a companion to sit all help keep people in store. Lacking these are things is what make some people shop online – where they can try on clothes much more easily and in comfort.

Gary Sankary
Gary Sankary

It’s nice to see that despite enabling technology, the fundamentals of retail selling are still genuine personal interactions. This article could have been written 100 years ago; all the fundamentals for greeting and interacting with customers are the same.
In my experience, retail workers today are no more or less attentive than their predecessors. Stores that invest in training and developing their teams typically provide better customer experiences than stores where a lack of training and support for front-line team members leads to high turnover and a lack of engagement.

Dick Seesel
Dick Seesel

Start with assortment planning: Does the product (and pricing) make sense for the store’s brand image? Can the merchandise be presented in a coherent way? Can the store manage replenishment if it’s part of the formula? And can the store staffing (at whatever level makes sense) handle the flow of goods?

These are just a few issues, but it all starts with merchandising.

Jeff Sward

The retailer’s job is to manage the customer’s emotions. Manage emotions, not logic. People feel faster than they think. How do they manage emotions? Storytelling. What’s storytelling? Merchandising. Executing to the Brand Promise in a continuously engaging manner. It’s Product (Price/Promotion) + VM + Flow + Selling Technique + Managing Friction +++. There are so many moving parts it’s single one out, so I summarize it all with “storytelling”. What story will the customer tell themselves and their friends after their visit? What will they single out? The product, the sales person, the techie thing…??? Depending on the quality of the retailers storytelling, the customer will have their own story to tell. Customers want to Explore + Experiment. Is the retailer Executing to that Expectation? What kind of Experience does it all add up to…???

Lucille DeHart

Being in stock on key items satisfies the immediate gratification of today’s shoppers. Consumers visit stores for a few reasons: community, immediate need, product review/try on, brand experience/events/services, pastime. One under valued opportunity is to offer first releases in stores or exclusive products. Stores can be strong customer acquisition platforms but they still play a huge role in creating the brand and strengthening brand loyalty through discovery and services.

Scott Norris
Scott Norris
Reply to  Lucille DeHart

There’s the word! Discovery is where stores should be shining, with unique brands and novel assortments. If you already know what you want, down to the item #, then online is superior except for shipping cost / logistics issues. But if you don’t know what you need, or just want to be inspired, then assortment + merchandising + staff training + adequate staffing is how lightning strikes.

Nolan Wheeler
Nolan Wheeler

If store operations are disorganized, whether because of inefficient workflows or poor communication, employees can’t deliver the kind of service that drives sales. The same goes for merchandising. Even the best displays won’t make an impact if associates don’t have the time or support to keep them tidy and stocked. When operations run smoothly and priorities are clear, employees can focus on creating better experiences for customers.

Michael Mollitor
Michael Mollitor

This is absolutely one of my favorite discussions in retail. Based on my experience here is how I see it, I’m happy to collaborate on any of the following in more detail if needed.
Optimize Merchandising: Strategically region high-margin items, use cross-merchandising, and create enticing seasonal displays.
Enhance Customer Experience: Train group of workers, provide in-keep demos, and make sure an intuitive keep layout.
Leverage Data Insights: Analyze income traits, gather remarks, and use loyalty packages to customize gives.
Drive Promotions: Use restricted-time offers, one-of-a-kind in-keep offers, and bundle pricing to encourage purchases.
Foster Community Engagement: Host occasions, accomplice with neighborhood companies, and combine social media for promotion.
Maintain Operational Excellence: Keep cabinets stocked, stores smooth, and checkout traces green.
Build Customer Relationships: Engage customers, observe up with customized communications, and act on remarks.
Adapt to Trends: Incorporate omnichannel alternatives, eco-friendly practices, and technology like QR codes or digital shows.

Ananda Chakravarty
Ananda Chakravarty

Keeping promises. Retailers who are able to build their business model on promises and capabilities such as EDLP, easy returns, environmentally conscious, convenience, selection, or price are all promise builders when it comes to merchandising. When these are violated, immediate trust with the customer breaks down, and loyalty follows quickly afterwards. Retailers cannot take this trust for granted and they must work to continually reinforce it.
Frontline workers need to follow the trustbuilding model, engaging on behalf of legitimate customers. For the last question, good merchandising practices including assortment selection, availability, placement and support are all table stakes- missing any of these will be quickly noticed and reflected in bottom line results. Retailers cannot sell merchandise without good merchandising practices.

Mark Self
Mark Self

Retail staff, and what they do and how they interact with shoppers and whether that makes a difference is (obviously?) dependent on the type of store in question.
No one offers recipe ideas at a supermarket anymore (did they ever?) but sometimes the samples help. Get ignored at a boutique dress store and that usually kills the opportunity.
Take stock of what segment you are in and who your customers are and hire and train accordingly. As a somewhat negative aside, good luck finding those people!

Lisa Goller
Lisa Goller

Beyond a friendly welcome and magnetic merchandising, in-store shoppers also value availability, fit, multisensory experiences and ease. Customers may like a new product but leave it behind if the long checkout line is barely moving.

Brad Halverson
Brad Halverson

A simple and visually impactful store, fully merchandised, and easy for the customer to shop will, alone can account for a 3%-5% in sales increase in any flat environment. In order for this formula to work it needs to be executed on. Daily commitment to a clean store with good lighting, with color blocked product, and clear signage helps customers quickly find what they want when sales associates aren’t available.

John Karolefski

The two best ways to increase sales in physical stores are to offer outstanding customer service and to stage events like store-wide sampling that include coupons.

Anil Patel
Anil Patel

Today, the shopping experience hinges on speed, convenience, and genuine human connection. Customers don’t just want polite staff, they want associates who are helpful, knowledgeable, and empathetic without being pushy. Sadly, too many frontline workers either feel disengaged or try too hard, both of which turn customers off.

As for merchandising, a messy store sends the message that the business doesn’t care, and customers notice that. Clean, organized, and visually appealing spaces make a difference. Retailers shouldn’t be surprised of losing business to online competitors if they don’t invest in training their staff and maintaining their stores.

BrainTrust

"For physical retailers, the emotional experience of in-person shopping is the key to sales optimization."
Avatar of Karen Wong

Karen Wong

Co-Founder & CEO, TakuLabs Ltd.


"Even the best displays won’t make an impact if associates don’t have the time or support to keep them tidy and stocked."
Avatar of Nolan Wheeler

Nolan Wheeler

Founder and CEO, SYNQ


"The retailer’s job is to manage the customer’s emotions. Manage emotions, not logic. People feel faster than they think. How do they manage emotions? Storytelling."
Avatar of Jeff Sward

Jeff Sward

Founding Partner, Merchandising Metrics


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