With the dimension of globalization as we experience today, there are new trends in shopping habits that have been revived. Modern consumers are very demanding when it comes to shopping habits, spending their precious time, but also when it goes about the design of the institutions they visit or experience they had there. Consumers demands towards traders are increasingly powerful, more specialized and more precise - they require creativity from traders to attract and motivate them to enter into their store. For this reason, a successful trader can’t do anything else but making the demands of his customers satisfied so he could create a positive image in the consumer's eye, which can be often reflected on the sales level of his store. That’s why the effect of visual merchandising becomes a crucial factor at the supply side in the retail industry. While this is reflected on the demand side as a pleasantly created store environment, it is also reflected in the form of a more economical and profitable business for a trader. A few years ago the retail sector in Europe has increased. New trends in this area - such as breaking new and fierce competitors, numerous brands, strong incentives for direct investments and new technology in the retail sector - have allowed consumers a greater choice in choosing trader but also make traders adjust their consumer's desires. That has made dominant and relaxed traders to create new ideas and new opportunities in the field of serving their customers. Because of that, traders and leading brands often point to the communication marketing strategy with customers in the store and during their purchase - which is known as the strategy of visual merchandising. This powerful communication tool assists and encourages sales, which is why, in a modern consumer society, the merchant business is unthinkable without the obvious elements of merchandising. This assortment management with their supporting service within the store can be defined as a kind of a science of shopping. It represents the proper way to use those merchandising tools that focus on designing signs that consumers will actually read, way to make sure each message is in the appropriate place or way to design layout and arrange displays. The ultimate goal of this marketing strategy is to create conditions for a fast and easy access to every part of the store, so as the conditions for the consumer's satisfaction. The literature review shows many different elements of merchandising, but in this paper, the point of consideration will be following elements: store layout, in-store product displays, regular promotional signage, price promotional signage, product shelf presentation,employee staff and in-store atmosphere. Within this thesis, the named elements of visual merchandising were discussed, so as their correlation and relationship with consumer impulsive buying. As well, there are explored the answers to the question of why marketing strategy decisions about visual merchandising are important for increasing sales at the store? The empirical research relies on previous literature review and refers to discovering the dimensions of visual merchandising that are significant in creating impulse buying or increasing impulsive buying of observed consumers that are visiting large-scale (supermarket/ hypermarket) retail stores. Empirical research focuses on consumers of retail grocery stores mostly in the food sector in the Osijek-Baranja County, Croatia. Empirical research was conducted on a sample of 226 respondents, who are involved in shopping in a grocery store - supermarket/hypermarket, with the main goal: to find out how consumers make their choices when they purchase. The main finding of this research suggests a positive correlation between visual merchandising elements and the impulsive buying. Besides, the element of in-store product displays and the element of the in-store atmosphere have a strong pivotal relationship with the impulsive buying - this suggests their importance in stimulating unplanned purchases. The remaining elements of visual merchandising in the store, the store-layout, regular promotional signage, price promotional signage, product shelf presentation and employees do not have enough strong significance in order to predict the level of sales generated by impulsive buying, but there are a constant correlation and mutual connection of observed variables with impulse buying. This research gives an insight to traders and marketers that operate in the Republic of Croatia about which elements of visual merchandising can significantly affect consumers buying behavior and stimulate impulsive purchases.