Effective Categorization = Better Sales & SErvice

What does an effective Category Plan have to do with successful retailing? Well, a lot! Case in point the right photo. A scrapbook shop traditionally presents their merchandise categorized by product type. While this means easier inventory taking for the staff, it is a nightmare for customers looking for products. Scrapbookers create books by occasion or event – such as weddings, vacations, birthdays, etc. When products are grouped by type, this means they have to browse (or crawl in this case) through all the papers displayed as the left photo shows. Then move onto the scrapbook section to do the same, and so on. Realistically, who has time for that?! The shop on the right displays categories by END-USE. This means grouping everything a shopper needs in one section. For example, all wedding themed scrapbooks, papers and accessories are set-up together. Therefore, depending on how your customers use your merchandise, your Category Plan should ideally reflect this as well.

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