Teardown of a retailer’s category reset that improved discovery and basket size through better merchandising.
A deliberate category reset reshaped product placement, signage, and discovery pathways, driving stronger shopper engagement, higher cross-sell rates, and a measurable lift in average basket value across multiple stores and digital touchpoints.
The project began with a clear mandate: increase product visibility for high-margin essentials while simplifying navigation for infrequent buyers. The merchandising team mapped customer journeys across in-store aisles, digital category pages, and mobile apps, identifying friction points where shoppers abandoned their baskets. They conducted quick, iterative tests, using heat maps, ear-to-ear shopper interviews, and sales data to prioritize changes. The plan leaned on modular grids, consistent iconography, and a renewed emphasis on category affinities—bakery with spreads, beverages with snacks, and health with wellness supplements. Early wins emerged from reorganizing shelves into logical, predictable sequences that mirrored real purchase patterns.
A key tactic was implementing a disciplined category reset playbook that could be replicated across regions. Merchandising teams defined clear learnings from best-performing outlets and codified them into a scalable framework. Shelf personas were introduced to capture shopper expectations by aisle, ensuring each category had a compelling entry point and persuasive micro-mesonarratives that guided choices without overwhelming the eye. To complement this, price image and promotion strategy aligned with shopper milestones—weekend trips, payday fluctuations, and seasonal changes. The resulting layout leveraged sightlines and proportional gaps to create intentional discovery moments while preserving aisle integrity and logistical feasibility.
Data-driven improvements that boosted discovery and basket size
The first wave of changes focused on visibility and accessibility. Displays were standardized around a single, high-contrast color family so that related items stood out without competing for attention. Fixtures adopted adjustable heights to accommodate wheelchairs and shorter shoppers, expanding reach and comfort. Endcaps curated with complementary SKUs created a sense of discovery at decision points, encouraging cross-category exploration. Shelf labels adopted plain-language language and consistent icons, reducing cognitive load and speeding decision-making. This disciplined approach improved basket breadth as shoppers encountered more relevant items during every visit, a trend that persisted in both physical stores and online carts.
To sustain momentum, the team deployed micro-tests that could be learned from within a few weeks. They experimented with alternate product sequencing, such as placing best-sellers earlier in the path and test-driving new combinations later in the aisle. They also rebalanced space allocation so high-margin items gained room without sacrificing breadth. Digital merchandising followed suit, with category pages redesigned to reflect the same logical order, ensuring a seamless transition from store to screen. Customer feedback loops were installed to capture sentiment changes and to adjust prompts, imagery, and copy. The combined effect was a more intuitive journey that increased confidence and purchase intent across segments.
Customer-centric testing and continuous refinement in practice
Data analytics revealed strong correlations between shelf proximity and add-to-cart rates, particularly for bundles and meal solutions. The team responded by prioritizing bundle-capable SKUs in proximity to complementary items, enabling quick, convenient combos. Seasonal assortments were tuned to reflect regional preferences, while still maintaining core anchors to prevent confusion. Pop-in promotions and limited-time offers were integrated into the rhythm of the category so shoppers perceived timely value without feeling overwhelmed. The merchandising logic also considered diversifying supplier SKUs to avoid stockouts while preserving a coherent category narrative that felt curated, not chaotic.
The reset’s efficacy sharpened once in-store and online experiences aligned on search and discovery signals. Tagging and taxonomy enhancements let shoppers surface cross-category opportunities with fewer clicks. Visual merchandising extended beyond shelves to include digital touchpoints—kiosk screens, app banners, and checkout displays—that reinforced the same narrative. Training sessions for store associates reinforced the new language and flows, turning frontline staff into confident guides who could proactively direct customers toward high-value bundles. The result was a measurable uplift in average order value and an improved share of wallet across multiple visit types.
Operational discipline that anchored sustainable gains
A culture of test-and-learn became the backbone of ongoing improvements. Teams tracked metrics such as dwell time in category pages, conversion rates on bundles, and incremental profit per square foot. They ran weekly retrospectives to interpret anomalies and celebrate successes, sharing learnings with regional partners to avoid reinventing the wheel. The process encouraged frontline staff to provide real-world observations about shopper behavior, which fed back into the reset strategy. This closed-loop approach helped maintain relevance as shopper needs shifted with seasons, promotions, or new product introductions.
Beyond the numbers, the reset sought to nurture brand trust by delivering consistency across channels. In-store signage mirrored online visuals to minimize cognitive dissonance, while product descriptions maintained accuracy and tone. Merchandisers collaborated with category captains to curate stories around sustainability, origin, and usage guidance—elements that resonated with contemporary consumers. The alignment extended to replenishment cycles, ensuring popular items remained accessible and that substitutions did not dilute the category’s core value proposition. The holistic approach strengthened shopper confidence and fostered repeat visits.
Long-term impact through disciplined merchandising and outcomes
Implementing a category-wide governance model proved essential for durability. Regular audits ensured executions matched the blueprint, while automated dashboards alerted managers to deviations before they escalated. Replenishment routines were synchronized with promotions, enabling reliable stock availability and clean aisles. Training materials emphasized consistent execution in both peak and off-peak periods, so performance did not degrade during busy seasons. The governance also included cross-functional reviews with marketing, pricing, and logistics to preserve the integrity of the merchandising strategy as store formats evolved and new channels emerged.
The store-level rollout balanced central guidance with local autonomy. Regional teams adapted flexibly to each market’s shopper profile while preserving the category’s overarching logic. This approach reduced the risk of generic, one-size-fits-all executions that could undermine discovery. The cadence of updates allowed stores to experiment with localized assortments and promos without compromising the brand’s cohesive story. Leadership recognized that sustainable gains required both standardized playbooks and room to tailor experiences to real-world conditions, thereby maintaining momentum across the network.
Over the course of a full cycle, the category reset delivered a notable lift in engagement metrics and profitability. Shoppers reported greater clarity when navigating aisles and category pages, and they repeatedly demonstrated higher basket counts through cross-sell opportunities. The sales mix shifted toward higher-margin bundles and sustained a favorable margin profile despite competitive price pressure. Store labor efficiency improved as associates spent less time locating items and more time guiding customers, which translated into faster checkout experiences and higher customer satisfaction scores.
Looking ahead, the retailer plans to extend the merchandising playbook to adjacent categories and channels. The emphasis remains on disciplined experimentation, data-informed decision making, and a consistent shopper-centric language. By continuing to optimize discovery pathways, improve item adjacency, and reinforce cross-category storytelling, the business expects to sustain basket growth and broaden loyalty. The teardown underscored a simple truth: well-structured merchandising, rooted in shopper insight, can transform both the moment of choice and the broader relationship between retailer and customer.
