• | 12:58 pm

How visual merchandising protects gross margins

Cape Union Mart’s Maria Murtas reveals how strategic visual merchandising, solution-based storytelling, and agile floor planning protect gross margins and sell-through amid supply chain volatility

How visual merchandising protects gross margins
For generations, executive boardrooms treated visual merchandising as a decorative afterthought—the creative final coat of paint applied to a physical store after merchandise planners, buyers, and pricing teams completed their work. When footfall slowed or inventory backed up, the standard boardroom playbook defaulted to margin-eroding promotional discounts.
That passive view of store presentation is no longer commercially viable on modern retail trading floors.
In an era defined by unpredictable supply chains, sticky inflation, and cautious consumer spending, visual merchandising has evolved into a frontline profit-protection mechanism. Across more than three decades spanning retail operations, buying, brand development, and store design, industry veteran Maria Murtas has developed a clear operational framework around this shift.
Currently serving as Group Visual Merchandising Manager at South Africa’s outdoor giant Cape Union Mart, Murtas oversees customer journeys, retail environments, capital projects, and visual standards across an expansive national store portfolio. In an exclusive interview, she contends that great store execution does not simply decorate a commercial space—it actively defends gross margins.
“Visual merchandising is often perceived as the final step in retail execution,” explains Maria Murtas, Group Visual Merchandising Manager at Cape Union Mart. “In reality, it is where strategy, inventory, customer experience and commercial performance converge on the shop floor.”

Elevating Perceived Value: Driving Full-Price Conversion Without Discounts

When retailers face cautious consumer spending, the immediate executive instinct is to launch price promotions. However, aggressive discounting trains consumers to wait for sales, systematically eroding brand equity and gross margins over time.
Strategic visual merchandising offers a commercial alternative by increasing the perceived value of merchandise on the shop floor. When products are presented in inspirational, solution-oriented contexts rather than as isolated, price-tagged items, consumers evaluate purchases based on utility and lifestyle aspirational value rather than on baseline unit cost.
At Cape Union Mart, this principle is executed by presenting complete outdoor solutions rather than individual product lines. Instead of displaying technical hiking boots, insulated outerwear, and navigation equipment in isolated, siloed sections, the visual merchandising team combines them into a cohesive adventure story.
“Visual merchandising helps retailers protect margins by increasing the perceived value of products,” Murtas observes. “When stores present merchandise in a compelling, inspirational, and easy-to-shop way, customers are more likely to buy at full price.”
By showcasing a complete outdoor solution together, shoppers evaluate the value of the overall experience rather than focusing solely on individual price tags—driving multi-item basket conversion at full retail price.

Managing Supply Chain Volatility: Protecting the Customer Perception

Global supply chain disruptions, port congestion, and shifting manufacturing schedules frequently leave retail networks with uneven inventory arrivals. While inventory gaps are an operational reality behind the scenes, exposing those gaps on the sales floor damages brand credibility and shopper confidence.
Shoppers rarely notice when a specific stock keeping unit (SKU) is missing from the backroom, but they immediately react to sparse displays, empty shelves, and chaotic floor layouts. Managing customer perception during stock volatility requires an agile approach to floor presentation.
Supply chain disruptions require agility,” says Murtas. “The focus should remain on delivering a consistent customer experience, even when product availability changes. Customers do not always notice missing products, but they immediately notice empty shelves, poor presentation, and inconsistency.”
To maintain a consistent experience during supply chain bottlenecks, visual merchandising teams must deploy agile floor strategies:
  • Adaptive Layout Modularity: Transitioning away from rigid, SKU-specific fixtures toward flexible presentation grids that can be quickly reconfigured based on real-time stock availability.
  • Visual Density Maintenance: Merchandising available hero inventory with higher visual density and creative focal points to prevent “gapping” on wall bays and floor tables.
  • Clear Navigation Storytelling: Utilizing signage and curated lifestyle imagery to guide shopper focus toward fully stocked alternative product categories without drawing attention to delayed shipments.

Visibility Before Markdowns: Re-positioning Stock to Accelerate Sell-Through

When product sell-through slows down, retail operations often default to the margin killer: the first markdown.
From a commercial merchandising perspective, discounting should be the last resort, not the first reaction. In many cases, sluggish sales are not caused by poor product design or uncompetitive pricing, but by poor physical visibility and weak location placement inside the store.
“The first markdown should never be the first solution,” Murtas asserts. “The first solution should be better visibility, better positioning, and better storytelling. By prioritizing key products, reacting quickly to sales trends and showcasing inventory effectively, retailers can improve sell-through and reduce the need for markdowns.”
Before sacrificing gross margin percentage points through price cuts, store teams must audit the product’s physical presence on the floor:
  1. Sightline Optimization: Moving slow-moving inventory from low-density secondary aisles to primary entrance focal points or high-traffic decompression zones.
  2. Cross-Category Styling: Pairing unpromoted, slow-turn items with proven bestselling core products to create new visual interest.
  3. Lighting and Feature Adjustment: Upgrading targeted accent lighting and graphic messaging around lagging stock to reignite customer discovery.

Intentionality Over Capex: Delivering Premium Presentation on a Budget

A common misconception among retail executives is that creating a premium store environment requires massive capital expenditure in custom architectural fixtures and expensive digital installations.
In reality, premium brand presentation is driven by intentionality, consistency, and execution discipline—not fixture budgets.
“Premium presentation is not necessarily about spending more; it is about being intentional,” Murtas explains. “A well-lit, neatly merchandised display with good product density often creates more impact than expensive fixtures that are poorly maintained.”
By standardizing visual compliance across regional store networks, retailers can elevate the brand experience while keeping operational overhead lean and cost-conscious. Looking ahead, Murtas stresses that the future of visual merchandising will be defined by flexibility, speed, and customer relevance, where adaptable store environments and data-driven decisions allow brands to respond rapidly to market shifts.
“Retailers who succeed in uncertain times will not necessarily be those who spend the most; they will be those who adapt the fastest while staying true to their customer proposition,” Murtas concludes. “In the end, great visual merchandising is not defined by what customers see—it is defined by how we make them feel, and ultimately, how those feelings influence the way they shop.”

As retail continues to evolve across markets, the ideas shaping its future are increasingly being defined through global industry dialogue. Retail World Forum & Awards brings together senior retail leaders, technology innovators, and ecosystem stakeholders across high-growth markets to explore the strategies and innovations driving modern commerce—alongside a global awards platform. To partner, speak, or attend, log on to retailworldforum.com

ABOUT THE AUTHOR

With over six years of experience, Mannu specializes in retail journalism, e-commerce, and technology. His role emphasizes content production, editorial consulting, and delivering impactful insights. More