Online Visual Merchandising in Grocery Retail: The Impact on Retailer and Customer Behavioural Outcomes

Purpose. In an age where digital shopping is fast becoming the norm, this study looks at the art of presentation and persuasion that occurs on the screens of our devices. It delves deep into the intricate balance of colours, layouts, and design elements, all carefully curated to influence customer online grocery shopping choices. This study investigates the outcomes of online visual merchandising on retailer and customer behavioural outcomes. Design/methodology/approach: The authors reached out to a diverse group of online grocery shoppers through online surveys, aiming to capture valuable quantitative data through convenience sampling technique. This process involved 250 online grocery retail customers in South Africa. The hypothesised model was tested using partial least squares structural equation modelling (PLS-SEM), allowing to determine the relationships and dynamics at play and its impact on the online grocery retail sector. Findings: The results highlight the significant role of online visual merchandising within the South African online grocery retail sector. All the hypotheses were all supported. Practical implications: The study highlights the prominent influence of particular online visual merchandising strategies on customer behaviour, highlighting the potential for retailers to improve their mobile platforms by implementing recommendations related to visually appealing product displays and targeted promotions. The study aims to provide invaluable insights for the digital era, enhancing not only the shopping experience but also the strategies adopted by retailers in this dynamic and rapidly growing sector. Originality/value: To the best of the authors’ knowledge, this study is among the first few to examine the outcomes of online visual merchandising in the online grocery retail sector in South Africa.