RIS News recently issued a custom research report (available here) tackling the issues surrounding in-store merchandising. The study uncovered compelling evidence that it is time for retailers to tackle the problem. Over the course of this blog series, we will examine a number of issues currently preventing retailers from becoming more compliant, and the situational factors bringing about changes for the better.
In this post we introduce many of the issues retailers are facing to remain campaign compliant and the revolution in brick-and-mortar stores that will bring about change.
First, the bad news. As retailers labor to meet customers’ needs with omnichannel strategies, and the complexities of brick-and-mortar retail continue to grow, campaign planning and forecasting has deteriorated.
The RIS News research report examines how many retailers have a problem with in-store merchandising accuracy. Anecdotal evidence from discussions with merchandisers indicate the problem is large and is supported by the research report that found only 3.7 percent of retailers have exact accuracy of planogram knowledge down to the fixture level for all their stores.
Retailers have lost confidence in their stores’ ability to execute localized campaigns quickly and effectively. Campaign intricacy is accelerating with products, POP, kits and creative being shipped to stores on a more frequent basis. In addition, communication from headquarters to stores typically lacks timeliness and relevance.
These inefficiencies not only waste time and lead to confusion, but also impact profit margins in the form of overprinting, shipping costs, and lost sales due to untimely and inaccurate product mix and messaging.
Now the good news. With the right suite of visual merchandising management solutions, an accurate merchandising planning process is attainable. With these tools, communication becomes clear and precise, and retailers save time and money. Visual merchandising management solutions enable retailers access to real-time information needed to carry out accurate localized campaigns to their stores.
When the right product and messaging is delivered to the right store, at the right time, on the right fixture, retailers can drive the customer experience envisioned in the original planning process.
Over the course of this series, we will examine some of the specific issues holding retailers back from becoming more compliant, the factors causing them to change their approach to in-store merchandising for the better, and finally how Known Problem Management (KPM) can help retailers identify problems and work toward a long-term solution.
Does your company currently implement visual merchandising solutions to ensure campaign compliance at the fixture level? We would love to hear from you in the comments section below. Please feel free to also reach out to us on @Merch_Matters.
A free copy of the full RIS News research report is available here.