What does the term "cross merchandising" refer to in category management?

The term "cross merchandising" refers to the practice of promoting a collection of products from different categories simultaneously. This strategy is effective in category management as it encourages customers to purchase complementary items that they may not have considered together. For example, displaying pasta alongside pasta sauce and garlic bread can enhance the shopping experience by suggesting meals, increasing the likelihood of higher sales for the store.

This approach not only helps in increasing the overall basket size for customers by providing them with related product options, but it also improves customer satisfaction by making shopping more convenient. Ultimately, cross merchandising leverages the relationships between different product categories to drive sales and enhance the shopping experience.