Do retailers believe there is a link between merchandising execution and sales conversion rates? 9 out of 10 say yes.
The ability to help customers find what they are looking for easily, better communicate in-store promotions, and increase basket size via incremental impulse purchases are key benefits of merchandising execution practices and play a big role in the aforementioned bump in conversions.
A recent survey of 250 retailers by One Door, partnering with an independent third-party research firm, found some interesting opportunities for retailers looking to turn this belief into a reality.
5 merchandising execution opportunities:
- Move faster – Retailers need to respond to trends and changes in customer demands with speed to keep in step with other channels. 79% of high-level retailers receive 7 or more directives a quarter from HQ.
- Get local – 100% of high-level retailers localize assortments to AT LEAST the individual store level, if not a specific fixture or peg. Not only do retailers need to execute faster, they need to provide product mixes that are in tune with their customers.
- Improve store/HQ communication – For retail teams to function to the best of their ability, store managers and employees must be able to communicate effectively with HQ. This goes beyond email and phone calls and focuses on seamless, two-way communication.
- Provide better guidance – 35% of retailers do not provide store-specific merchandising guidance, this means store associates have to spend additional time interpreting instructions. Sending instructions specific to an individual or store team can cut down on time spent on resets, allowing them to spend more time with customers.
- Measure and reward employees – 93% of retailers identify merchandising accuracy as a key performance indicator yet only 36% of retailers provide bonuses or other monetary rewards for employees who do so.
It is clear that there are incredible opportunities for retailers to improve retail performance through merchandising execution. In fact, most high-level retailers are employing many, if not all, of these tactics today.
To determine how well your organization is positioned to capitalize on these opportunities, One Door has created the Merchandising Execution Maturity assessment tool to help you uncover the hidden potential of your merchandising practices.
You can take the assessment by visiting bit.ly/MXsurvey