How is cross-merchandising defined in retail?

Cross-merchandising is defined as the practice of displaying products from different categories together to enhance sales. This strategy encourages customers to consider related products they might not have thought to purchase together. For example, a store might place pasta next to pasta sauce and garlic bread to inspire customers to buy all the items needed for a complete meal, thereby increasing the average transaction value. This approach not only provides a more attractive shopping experience but also improves the likelihood of impulse purchases.

By grouping complementary items, retailers can effectively highlight various merchandise and create connections between products, making it easier for customers to compile everything they need. This method often enhances customer satisfaction by simplifying the shopping process and promoting convenience.