What is "cross-merchandising" in retail?

Cross-merchandising in retail refers to the practice of displaying products from different categories together to create a more compelling shopping experience and encourage customers to purchase complementary items. This strategy aims to enhance the overall appeal of the store layout, stimulate consumer interest, and increase average transaction value by showcasing how different products can be used together.

For instance, in a golf retail setting, displaying golf clubs alongside golf balls, tees, and apparel encourages customers to consider purchasing multiple items at once. This approach not only enhances customer experience but also increases the likelihood of additional sales, thus benefiting the retailer by boosting overall revenue.

The options that focus on price reductions, exclusive branding, or seasonal sales do not capture the essence of cross-merchandising, which is about strategically presenting varied products to promote additional purchases and enrich the shopping environment.