RIS News Research Identifies Keys for Optimizing In-Store Merchandising
In its newest custom research report, RIS News examines retailers’ in-store merchandising practices, identifying that this process is a broken and outdated one for a majority of today’s national and regional retail chains. The study, which is available for download, was sponsored by RBM Technologies.
“After surveying and speaking with these retailers, and learning more about their current practices, it became clear that in-store merchandising is a very broken process. Too many retailers are still relying on spreadsheets when they really need a comprehensive solution for managing their in-store merchandising campaigns and measuring execution.”
“Optimizing In-Store Merchandising,” which is based on survey responses from senior executives across national and large regional retail chains, identifies a new industry term – Known Problem Management (KPM). While the terminology might be new, anyone in retail IT can tell you what their KPMs are. For some, KPMs include shrink and, for others, heterogeneous databases and legacy systems that linger year after year with no end in sight. A major KPM in retail, and the focus of this report, is inaccurate planogram knowledge.
Key findings from the report include:
- A quarter of retailers have up-to-date store surveys, yet only 3.7% say they have accurate planogram knowledge down to the fixture level for all of their stores.
- A major part of the problem is that 63% of retailers are still using Excel spreadsheets for in-store merchandise planning, communication and compliance.
- A quarter of retailers do not even measure store execution and compliance regularly. In fact, a miniscule 7.4% say they only measure it one to two times a year and a much larger group of retailers – nearly 20% – say they never do it.
Joe Skorupa, RIS News editor-in-chief and the author of the report, comments, “After surveying and speaking with these retailers, and learning more about their current practices, it became clear that in-store merchandising is a very broken process. Too many retailers are still relying on spreadsheets when they really need a comprehensive solution for managing their in-store merchandising campaigns and measuring execution.”
The report also found that the bulk of the retailing industry is doing workarounds when they create merchandising plans and forecasts. They are working with historical and aggregated averages; using guesswork instead of hard numbers.
“Retailers have lost confidence in their stores’ ability to execute localized campaigns quickly and effectively,” said RBM’s Chief Operating Officer Dan Wittner. “Retail executives need access to real-time information in order to carry out directives from headquarters. This level of compliance ensures that every customer walking into their stores – regardless of store location – is seeing the right marketing messages and the right merchandise, exactly how it was envisioned to be placed within the store in order to create the optimal customer experience.”
To download a free copy of the report, visit the Research section on the RIS News website.
from Business Wire