Purpose – The purpose of this paper is to discover user-generated visual merchandising (VM) directives that could guide VM in physical stores as well as shed light on future development of customizable virtual stores for online retailing. Design/methodology/approach – Applying a facet theory approach, our research involved consumers (n=145) in co-designing VM directives in a 3D virtual store in collaboration with target corporation. In total, 67 virtual shops in three product categories, i.e., women’s ready-to-wear, boy’s Cherokee, and men’s swim wear, were content analysed, along with written reports. Findings – The research findings focused on the three facets of VM: merchandising presentation (fixturing, product density, manner of presentation, and product adjacency), in-store environment (layout and interior), and in-store promotion (signage). The research revealed the elements that these facets contain and the relationships between the elements. The findings suggest that retailers should design an ecological instead of a merely utilitarian environment; clear section identity helps shoppers find a sense of ownership and boundaries; and stores should also present a lifestyle solution instead of a merchandise selection. Originality/value – The research contributes both original creations of VM directives and a methodical framework that moves the subject of VM from the physical to the virtual environment and shifts the traditional in-house function of VM to an open innovation in which consumers participate.

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