Peak season is coming up and the promo calendar is set -- but the store never ordered any products. Merchandising encompasses everything from product placement and shelf management to promotional displays and pricing adherence. A lack of clarity or miscommunication with retail partners can result in poor execution, and ultimately hurt sales.
Why Merchandising and Investing in Retail Relationships Matter
Your products need to stand out on crowded shelves. The “buy zone”—eye-level placement—is the most coveted real estate in any store. Securing that position requires strong partnerships with retailers and an investment in maintaining those relationships.
Retail relationships are also vital for ensuring that stores carry out your merchandising plans effectively. When communication breaks down, displays may not be built as planned, and you’re left with limited visibility into the results of your investments. According to the 2024 Food Industry Association report, the average American household spends $165 per week on groceries and visits the grocery store approximately 2x per week. It’s important to get in-store execution right.
However, brands often face merchandising challenges like:
- Uncertainty Around Display Execution: After investing in Trade Promotion Management (TPM) spend, many brands struggle to confirm whether displays were built as planned or how many cases were featured.
- Out-of-Stocks: These can severely impact sales and harm retailer relationships. Lack of visibility into stock levels makes it difficult to act quickly and replenish inventory in time.
- Limited Data for Decision-Making: Without granular insights into SKU-level performance, brands risk missing opportunities to optimize their merchandising strategies.
Leveraging Technology to Address These Challenges
Modern technology solutions can transform merchandising by providing actionable, real-time insights. For example:
- Image Recognition and Analytics Tools: Solutions like Repsly and Trax use advanced algorithms to capture and analyze real-time data. These tools provide merchandising teams with SKU-level visibility and actionable insights, ensuring swift and precise action when issues arise.
- Merchandising Support Services: Teams like Basemakers act as extensions of your brand, ensuring your products are placed correctly and displays are maintained.
- Demand Forecasting and Sales Tracking: By analyzing customer traffic and sales data, brands can forecast demand more effectively and optimize their use of physical store space.
Building a Comprehensive Tech Stack
To truly excel in in-store execution, brands need a cohesive tech stack. A well-rounded solution might include:
- Tools like Trax or Repsly for image recognition and real-time SKU tracking.
- Merchandising support services like Basemakers to handle on-the-ground execution.
- Pantry AI to streamline new purchase orders (POs) and provide inventory visibility, complementing your merchandising efforts.
By integrating these tools, brands can address the most common pain points in retail execution—from ensuring proper display setups to avoiding out-of-stocks—while maintaining strong relationships with retail partners.