Unparalleled Retail Merchandising Experience

RMS is a privately owned, boutique agency specializing in servicing Target, and is proud to have been a Preferred Target Partner for 38 years and counting.

Collectively, our leadership team brings more than 150 years of executive retail experience. On top of that, the majority of our leadership team and account teams have worked in Target stores, with many as Executive Team Leads and Store Directors. This brings a deep understanding of Target to our clients that just cannot be matched.

Flexible Merchandising Solutions

By drawing on this experience, RMS is able to offer solutions that are flexible to the shifting needs and challenges our clients face. And above all, we care about building deep and long-lasting partnerships with both our clients and our retailer partners.

Our “secret sauce” is an open secret – we value relationships.

We assign field reps to specific stores that become that representative’s primary location. This provides concrete insight to the unique qualities of every store and creates strong relationships between the RMS field rep and the management team at the assigned store. The result is more efficient service, more willingness to help from Target team members, and higher rates of success locating cartons of critical SEM or product because of deep knowledge of that store.

Customizing solutions allows RMS to respond to specific challenges with nimble strategies. Numerous case studies show how RMS has been able to make a difference for brands facing issues such as Scan-Based Trading (SBT) management. RMS is also responsive to challenges and opportunities that arise from economic trends and seasonal patterns, designing crucial strategies for display maintenance in response to changing consumer behavior.

Every Target Store Covered

RMS covers every Target store with average completion rates over 95%. Our field team visits every Target store at least once per week and averages over 1 million logged hours in Target stores annually.

RMS focuses on quality service. We employ 150 certified trainers across the country. Every field rep spends their first day in face-to-face training at the store they are assigned, learning the RMS way as well as the Target process and meeting the Executives and Team Leads in the store they will service.

RMS offers so much more than routine visits, and the difference shows in our execution rates and client satisfaction. Our best-in-class compliance and other protocols are popular with clients, garnering such comments as “Everything was great! Love the communication” and “RMS is a great partner and I recommend their services to our clients regularly.”

Whatever your unique challenges, RMS has the experience and flexibility to provide the merchandising solutions you need. Our built-in process with Target means we are positioned to improve everything about how your brand is represented there. Contact us today to see what we can do for you!

The post Why RMS is the Right Retail Merchandising Partner for Target Suppliers appeared first on RMS.

The key to success for any SBT program is top-notch retail inventory management. Every step from locating boxes of inventory at the receiving dock, to getting them to the sales floor must be executed flawlessly. Inventory counts must be frequent and timely. And of course, every item needs to be priced correctly. For a supplier with nationwide coverage like this brand, finding the right partner who could perform at the highest level consistently, was the top priority.

RMS was thrilled at the opportunity as we specialize in nationwide, SBT support, and our in-store execution rates are unparalleled. RMS accepted the challenge and set out a plan to help this card company course-correct and set them up for future growth.

Read on to learn more about the challenges this company was facing and how we were able to develop a program that has helped them thrive over several years.

The Challenge

This greeting card company needed to address the daily management of their SBT program and during peak holiday seasons. Before RMS, this brand’s cards were not making it to the shelves. From missing shipments at store locations to improperly managed out-of-stock items, to accuracy challenges, it was clear they needed robust processes and automation to improve store execution. 

RMS’ Solution

After implementing some basic blocking and tackling SBT strategies during the initial non-holiday period, they were thrilled with how efficiently RMS handled their day-to-day management. Ahead of the first cycle of holidays, we collaborated with them to ensure every gap they wanted addressed had a strategic plan and process to address it, giving them peace of mind, even before the busy season hit.

RMS developed specific strategies for this client to address the time-sensitive nature of the product, creating specialized and season-specific shipment tracking. RMS partnered with the client to create branding on shipment boxes to help field representatives locate a higher percentage of shipments, versus their previous service provider.  RMS also created a shipping carton scan feature that automatically matched sent cartons to the cartons the field reps were servicing.  We also implemented a photo capture of the shipping label to provide to the client to double confirm the correct cartons were being located and worked to the sales floor.

To improve inventory management, reps scanned out-of-stock and damaged items and uploaded information to the client’s inventory system automatically every evening.

RMS also partnered with the client to create a scannable Add/Drop product list for service efficiency.

Finally, we created detailed scan guides that were sent to reps to help improve accuracy in setting new POGs and seasonal endcaps.

Results

Once this client and RMS partnered, we were able to deliver significant improvements and have been honored to be their merchandiser of choice ever since.

A few highlights of our work together:

• In 2021, RMS completed a total of 28,628 visits during Holiday servicing.
  
• In 2022, Mother’s Day saw 98% of cartons were located and installed, while stores were visited 7 to 11 times per week during the Valentine’s Day 2022 period.
  
• In 2023, Mother’s Day and Valentine’s Day numbers remained high, with 93.6% visit completion for Mother’s Day and 91.7% visit completion for Valentine’s Day.

Since starting with RMS, this greeting card brand has beat internal seasonal sales forecasts every period. We wanted to make sure they were set up for long-term success so they also retain the reporting and automation created by RMS for future seasons. This includes Box Find reporting for tracking and reporting all shipments sent to the store, and the Box Scan Functionality, which allows reps to scan shipment tracking barcodes to improve the accuracy of shipments.

At the conclusion of each season, RMS provides a hindsight presentation highlighting wins and opportunities, and strategies for future seasons. This is in addition to weekly inventory reports, weekly servicing recaps, and weekly reporting on missing ISM.

Most recently, this supplier reported that they had a successful holiday season thanks to RMS’ execution, adding “Major, major kudos to everyone involved with this project, it was a gigantic success!”

Flexible solutions make the difference in maximizing in-store execution for products like these, and RMS has the robust and tested methods to make the most of every season.

Companies of every size and scope need focused solutions for improving SBT performance. RMS has a standard program that covers the basics of shipment locating, product stocking, planogram transitions, SEM management, and service reporting. Account managers are able to develop specific strategies to address the particular needs and opportunities of each client to make sure your goals are met or exceeded.

If you’re wanting to experience best-in-class management of your SBT program, give us a call to see how we can help!

Contact us today!

The post See How A Large Greeting Card Company Partners with RMS for Expert Scan-Based Trading Management appeared first on RMS.

The sheer volume of people purchasing graduation gifts is climbing. The NRF reports that the number of people purchasing graduation gifts hit a ten-year low in 2020. But in just two years the number of purchasers has rebounded to the ten-year average of 33%, with a total expected spend of $5.8 billion across the population. The average amount spent on graduation gifts is also climbing, a trend that has continued steadily in recent years. Respondents to the 2022 survey reported spending an average of $114 on graduation gifts.

What People are Gifting Their Grads

But what are people actually giving the graduates in their life? There are more options out there than ever, and some experience pressure to come up with unique or personalized gifts for graduates, which is why it’s no surprise that the most popular choices for graduation gifts continue to be cash, cards, and gift cards. Cash is by far the most popular graduation gift, accounting for 52% of graduation gifts in 2020. Giving cash gives graduates the option to spend or save as they choose, an important parallel to their transition into adulthood.

A card with a personal message is still an important way to congratulate graduates on their achievements. Cards account for 37% of graduation gifts in 2022. When paired with cash, a card can combine a personal touch with practicality. The card’s message could be an opportunity to suggest how the cash or gift card could be spent, such as for dorm room supplies or headphones of the graduate’s choice.

In a similar way, gift cards can suggest a type of gift while giving the graduate the actual purchasing power. Gift cards are the third most popular choice in the NRF survey, accounting for 31% of graduation gifts. With gift cards, retailers have two opportunities to connect with consumers: first with the initial purchase of the card by the gift-giver, and then with the graduates themselves. Whether catching the attention of someone purchasing a gift card or drawing in a graduate with a gift card to spend, brands must ensure that their shop floor presence is on point to maximize in-store execution.

How RMS Can Help Brands Capture Grad Dollars

RMS is uniquely positioned to assist brands in making the most of graduation season. Your RMS account manager works with you to develop ISM strategies and conduct field tests of the service, ensuring that displays are in place and up-to-date and that shelves are re-stocked promptly. 64% of consumers report that the in-store experience has the greatest influence on what they choose to purchase, making these strategies essential for driving graduation season purchases.

In-store displays and stock-level management are important for other graduation gift categories too. Apparel and electronics represent 16% and 11% of 2022’s graduation spending respectively in the general population. These gift categories are more popular among younger graduation gift-givers, with 27% of people aged 18-34 spending on apparel and 19% in the same age group spending on electronics. Electronics and apparel brands have a great opportunity to catch the wave of younger graduation gift-givers spending more on the graduates in their lives but need to have reliable strategies to track and improve in-store execution.

RMS uses a proprietary platform to provide summary-level and store-level reporting that makes the difference in enhancing your merchandising strategies. Combined with our management team’s more than 150 years of executive retail experience, our cutting-edge reporting allows brands to shape their presence to meet the shifting habits of our younger consumers.

While younger graduation gift-givers are more likely to give electronics and apparel, consumers age 45 and up overwhelmingly give cash. In the 65+ category, 66% of respondents report gifting cash to graduates. This trend is driven by the belief that graduates are better at selecting gifts for themselves, and also from the understanding that they may need more help with basic necessities than they realize. As graduates enter a challenging economic climate, help with groceries and dorm room basics can actually be the best use of graduation gift funds.

The class of 2023 has faced some unprecedented challenges on their way to graduation. Remote learning and economic uncertainty have shaped their experience in education and will continue to shape their lives. Friends and family members recognize this and are showing up for graduates with gifts that empower them. Whether they receive cash or gift cards, graduates will be making the ultimate purchasing decisions on their graduation gifts. Brands have two waves of consumers to catch this graduation season, and RMS has the tools and experience to make the most of it.

Interested in partnering with RMS for all of your retail merchandising needs? Call us today!

The post Graduation Gifting is on the Rise appeared first on RMS.

Retail merchandising execution remains a challenge in this landscape, cited as a major challenge across global merchandising decision-makers and for 18% of respondents, it is their most pressing challenge. A retail merchandising partner can help maximize in-store sales, but how can you make sure your merchandising partner has what it takes to make sure your inventory is placed, set, and priced correctly?

Question 1: How is the firm owned and operated?

Many firms are simply divisions of larger companies that have been acquired and do not operate independently. Is the firm you’re considering privately held?

RMS is a privately held firm, which means we are more flexible and more focused than an acquired division. RMS provides better customer service because our team is more informed and more engaged with the realities of retail merchandising. Our entire team is able to nimbly address client concerns, so no matter who answers your call, you know you’ll find your answer.

Question 2: Who represents the company and how are they trained?

The skills and experience of a company’s field team determines their ability to maximize sales. Is your potential merchandising partner staffed by experienced and knowledgeable personnel?

RMS hires the most skilled and qualified individuals to perform merchandising tasks. We are highly focused on our training, with over 140 Certified Trainers across the country ensuring that all new merchandisers are up to speed. RMS’s award-winning training program provides an edge for effective store execution and reliable data collection.

Question 3: What services beyond merchandising does a firm also offer if any?

Some companies split focus across many strategies including sampling, remodels, and new store openings. Multiple strategies can lead to a scattershot approach lacking effectiveness.

Merchandising is all RMS does. Our focus on maximizing execution is unwavering, and we have developed specific technologies to enhance performance. We use a proprietary platform and mobile application to increase flexibility and provide unparalleled data collection.

Question 4: What access does the field team have to the retailer systems?

A merchandising firm’s ability to access retailer systems and work independently will determine their success. Without access, the merchandiser relies on the retailer’s ability to monitor and move stock. With retailer-only execution rates hovering around 40%, your merchandising firm needs access to inventory in order to improve sales execution.

RMS is BackRoom certified at Target with access to their backroom and inventory devices. This means our field team can independently locate backstock and move it to the sales floor, closing a major gap in the sequence to successful execution.

Question 5: What kind of experience does the corporate office have?

Real-world experience is necessary to understand the issue at retail and the best way to achieve optimal store execution results. It’s important to know where your potential merchandising partner’s corporate office gained their experience.

The RMS leadership team has more than 150 years of manager-level retail experience both at stores and corporate offices. Our seasoned experts also draw from backgrounds in merchandising, operations, and manufacturing. The concrete skills and deep knowledge of our leadership team means we understand retail through and through.

Question 6: Where does the company’s field team spend their time?

If you are looking for help with a particular retailer, it’s essential to take a look at how much time a merchandising company’s field team spends there. How often do they visit, and what does their presence achieve? The more familiar a rep is with a store, the better their ability to complete tasks and the more likely successful execution will be.

Every RMS rep is assigned their own store so that they can familiarize themselves with the operations of a specific store and garner a relationship with the retail team. Our reps collectively spend over 1 million inside our retail partner t stores each year. 

Question 7: Do the client service leaders of the firm have retail experience?

Just like with the corporate office, it is important that client service leaders have retail experience under their belt. Does your potential merchandising partner have a field team with real-world retail experience?

Our client service leaders have all had management-level positions at retail stores. Furthermore, our field team is all required to pass in-store training from RMS-certified trainers upon hiring. This ensures that our team brings practical experience to bear, as well as delivering performance consistent with our standards.

After three years of upset and uncertainty, the opportunities of the “new normal” is coming into focus. Consumers are returning to in-person events, and retailers have a chance to capitalize on the desire for an immersive and holistic shopping experience. Retail execution implementation remains a major concern, reportedly leaving 81% of companies unsatisfied. With the right merchandising partner, there are great gains to be made in this new landscape.

Contact RMS today to see if we’re the right fit for your merchandising needs!

The post What Questions Should You Ask When Considering a 3rd-Party Merchandising Firm? appeared first on RMS.

If you win, you meet your sales goals and the busiest season of them all gets to be a solid success. But if you fail, the loss can echo for years to come, like the ghost of Christmas future.

We’re going to walk you through your game plan for this holiday season to make sure you avoid the pitfalls too many suppliers fall into and come out the other side with your pockets full of gold coins.

The Goal: Sell. That. Inventory!

Here’s the easy bit. Your mission this season is to sell your inventory. After a few years of challenging supply chains, labor shortages, and now inflation compounding all of it, each sale is more important than ever, not to mention more challenging than ever.

Not to worry though, we’ll go over how to mitigate these obstacles and how to keep your customers’ eyes on your products so you walk away with the prize: a successful holiday season.

The Key: Capturing the Consumer Attention Span

Some good news for all suppliers that sell their products at brick-and-mortar locations: foot traffic is bouncing back. Now, the trick is to turn heads once those shoppers enter the store. There are three strategies that can be deployed separately or together that can help grab those eyeballs.

Strategy 1: Omnichannel Presence

Don’t wait until feet are in the store to start marketing. Embrace digital marketing and online store presences to generate awareness and appetite so shoppers walk into the store with your products on the top of their “must buy” list.

Strategy 2: Visual Merchandising

Visual merchandising is crucial no matter where your products are living but especially if you’ve invested in any sort of promotional display. Make sure your products stand out and are visually appealing. If you can, employ in-store signage to further direct feet your way.

Strategy 3: Instant Redeemable Coupons

Who doesn’t love a great deal? While consumers are always scouting for a few ways to save, with increasing inflation and the purchasing power of a dollar decreasing instant redeemable coupons (IRCs) are the perfect way to capture not just attention but most importantly, purchases.

Challenge 1: Labor Shortage

The retail labor shortage isn’t new news and while it’s been an issue for a while now, it’s more pressing during the holiday season than at any other time during the year. In fact, it’s an even bigger worry for retailers than the supply chain challenges with 50% of companies surveyed reporting that it’s their biggest concern.

Challenge 2: Inflation

Inflation is rising, currently hovering at 8.5%, and consumers are taking note with the average household looking to spend $770 on gifts in 2022 vs the average of $1,000 spent in 2021.

This leads to intensifying competition for every consumer dollar. Whether your strategy is impeccable visual displays or embracing in-store coupons, perfect execution is going to be your best friend for capturing eyeballs and getting into peoples’ carts.

Challenge 3: Inventory Floods and Backroom Chaos

Alas, it’s not just your products in retailers’ backrooms. They’re contending with a flood of inventory from all angles and especially during the holidays, this creates chaos. The heightened load during this season directly impacts salesfloor execution and not for the better.

That’s one of the reasons it’s crucial to have a merchandising partner that can ensure your inventory makes it from the backroom to the floor. Find an expert merchandising partner who is certified to enter your retailer’s backroom.

The Solution: In-Store Execution Assistance

Having feet on the ground in-store is the best way to increase the success of displays and on-shelf sales. Because you and your team can’t be everywhere at once, it is imperative to partner with a merchandising partner you can trust.

Partnering with the right merchandising partner can raise your in-store execution rate by as much as 50%, and the average store-only execution clocks in at 40%.

Even though it’s another challenging holiday season for suppliers, there’s no need to fret if you’re properly prepared. Having a solid in-store strategy and accounting for the external forces will set you up for selling success.

Want to make sure you’ve got a best-in-the-industry merchandising partner by your side? Give us a call today and see how we can help you navigate the holiday season and come out stronger on the other side!

Get in touch with us today!

The post Why In-Store Retail Execution Matters Most During the Holidays appeared first on RMS.

Businesses face new challenges from a strained labor market and inflation. It is important to leverage in-store marketing (ISM) and achieve high execution rates to help customers understand the value of your products and to remove any barriers to getting them in hand.

Read on for more considerations on leveraging store execution to increase sales and maximize profits.

Data Informs a Renewed Focus on Execution Rates

As the United States faces the highest inflation rates it has seen in over 40 years, it is important to understand the impact this has already had and will continue to have on consumers in order to make informed strategic decisions around store execution investments. Here are the facts:

• Foot traffic is on the rise. While consumers still enjoy the convenience of online shopping catalyzed by the pandemic, in-store traffic has seen steady increases since 2021. 
• Spending is up, total products bought are down. While omnichannel consumer spending has continued to rise, households are purchasing fewer goods for more money as they face inflation.
• Discretionary spending is down increasing competition between products to prove their value. 
• Brand “shake up” is trending. There are more consumers switching brands this year than in the past 2, and 90% intend to continue. 
• Value is a priority. Consumers say they are making purchase decisions based on availability and value. It is especially important for premium brands to explain why their product is worth the money.

As consumers face difficult decisions to stay within their budgets and reduce discretionary spending, brands should focus on making their products an easy choice. High merchandising execution rates and ISM help drive consumer purchasing decisions. Products being in stock, easy to find, and callouts for their value all influence a buyer’s decision to reach for your brand. 

Don’t Leave Dollars on the Floor

While brands cannot single-handedly fix inflation, there is still an opportunity to optimize your strategy and maximize your sales. Consider what dollars may have been left on the floor during the good times due to product out-of-stocks, incorrect inventory counts, and poor or non-existent ISM placement due to low execution rates. A third-party audit can be a great step to help increase sales in a flattening sales growth trend.

Keep an Eye for What’s Going on In-Store

Great execution rates set the stage for your retail success. It is essential that your products:

• Make it to the floor, set correctly, and shelves full.
• Have shelf labels and priced correctly
• Displays and ISM are placed correctly and put your products at center stage. 

However, with the ongoing labor shortage, the average execution rate falls around 40% when merchandising is left up to the retailer. As retailers struggle to be fully staffed, a good merchandising partner can help set up products during key store resets and fill the important role of improving retail execution rates by 40-50%. 

Achieve High Store Reset Execution Rates with the Right Merchandising Partner

Improve execution rates and maximize ROI by partnering with merchandising experts such as Retail Merchandising Services during major store resets, display installations, and promotional launches. Focusing investment on a dedicated partner to ensure ISM is appealing and strategically placed, and that products make it to the proper places on the shelf can drive your whole season’s success. Consider finding a great merchandising partner for your next back-to-college plan and future seasonal resets. 

Retail Merchandising Services (RMS) is an experienced retail execution partner. As industry experts, we bring all the knowledge and staffing needed to execute every step of your next major store reset.

Call today to see if we are a good fit!

The post How to Increase Store Execution and Create Successful Retail Resets, Display Installations, and Promotions appeared first on RMS.

Keep reading to learn how scan-based trading can benefit traditionally D2C and emerging brands in 2022.

Scan-Based Trading Makes it Easier for Retailers to Say “Yes” to New Relationships

SBT allows retailers to take the leap to stock emerging brands and traditionally direct to consumer products by mitigating their risk. In SBT, suppliers retain ownership of their stock until items are scanned, retailers pay for the stock, and split the sale at checkout. Scan-based trading makes retailers likelier to say “yes” to new relationships since the risk of paying for stock up-front is removed. This allows suppliers to:

• Grow their footprint in the retail environment faster
• Introduce their products to new markets
• Retain control of their own merchandising and marketing plans

Since retailers turn to SBT to mitigate their risk, can suppliers really benefit? With the right strategy, absolutely.

Using Scan-Based Trading to Get into More Retailers Faster

Emerging brands and direct-to-consumer sellers looking to expand to the retail environment know that this can come with a handful of obstacles. Scan-based trading allows suppliers to bypass the traditional retailer systems, removing many of the steps that slow time to market.

Scan-based trading also offers new levels of efficiency in the supplier-retailer relationship as compared to the traditional stocking model. SBT shrinks the supplier-to-shelf supply chain, typically cutting out retailer warehousing. This allows suppliers to have ultimate control over distribution timelines. Additionally, removing retailer pipelines means that suppliers have more control over where to focus their inventory, how much inventory to risk to catch sales, and the opportunity to offer a larger assortment of products.

Point of Sale Data allows Suppliers to Maximize Sales and Trial New Products

The scan-based trading model provides suppliers with store-level physical inventory count data. This along with retailer POS sales data, allows suppliers to keep track of granular stocking needs, geographic preferences, and overall product success. With the right data systems in place, suppliers can assess new products and optimize inventory at the store level. This ensures that the right inventory is making it to the right stores at the right time, maximizing sales.

Scan-Based Trading Opens Cash Flow

In the traditional model, payments to retailers involve tracking, invoicing, and payment terms. Oftentimes, turnaround takes between 90 and 200 days. With Scan-based trading, payments happen around the POS, rather than before or after. Payouts are generally weekly, increasing cash flow. 

Maximize Success with a Great Merchandising Partner

Effective retail execution is essential for suppliers to get the most out of their scan-based trading relationships. With profits contingent upon products making it to checkout, the success of a supplier relies on their ability to maintain relevant stock and assess POS data. Suppliers can maximize their success by making sure they have the right team to execute their SBT strategy.

Experienced merchandising representatives ensure products are stocked attractively and appropriately. They maintain inventory reports to ensure optimal, store-level stocking.

RMS is a Proven Scan-Based Merchandising Partner

Retail Merchandising Services (RMS) is an experienced Scan-based trading partner. As industry experts, we bring all the knowledge and staffing needed to execute every step of your scan-based trading program from the receiving dock in the backroom, to a perfectly executed POG, to accurate store-level inventory audit reports.

Our services include top-notch:

• Visual Merchandising – making sure your planograms are set accurately and appealing to customers. Transitioning new products in and retired products out of the assortment.
• Inventory Management – Receiving shipments, taking physical inventory counts, and ensuring shelves are filled to capacity.
• Price Management – ensuring products are priced accurately and ringing correctly in the retailer’s system. 

Curious about growing your retail footprint? Learn more about RMS’ scan-based trading services today!

The post Scan-Based Trading: Entering the retail market as a direct-to-consumer business or emerging brand appeared first on RMS.

Question 1: How can you improve my in-store retail execution rate?

Did you know that retailer execution rates hover around 40%? This is one of the most pressing reasons that suppliers partner with retail merchandising firms. To risk inventory not being on the salesfloor or heavily invested displays not being set, creates a major risk to hitting sales expectations.

Any retail merchandising company you partner with should be able to significantly improve your retail execution rates.

So how do you vet this? Ask the merchandising firm what their average store visit rate is.  If a firm is only able to visit 70% of the stores you need them to service, they are not going to be able to greatly improve the overall execution of the tasks stores were not able to complete.

RMS Reference: Prior to COVID, our visit rates average 96% and during COVID and the current labor market strain, we’re proud to maintain an average visit rate in the low 90s. Check out our case studies to learn more! We also report on issues we find and also fix them. We want to make sure our clients get the fastest service possible so their sales stay on track.

Question 2: What level of training and certifications do your field reps have?

Your business depends on your product selling. And your product selling in-store depends on being set, priced, and stocked correctly. With that much at stake, you want to be confident that the field reps of your retail merchandising partner are experts at what they do.

Find out whether a company’s field team can work independently or if they’ll need to work through the retail employees to get tasks completed. This directly impacts both your cost and the time to complete a service.

One way to figure out the level of service you’ll receive from field reps is to understand whether they’re independent contractors or W-2 employees. While there is nothing wrong with either classification, it can be an indication of how much control the merchandising company has over training, scheduling, and reliability.

RMS Reference: The RMS field team are all W-2 employees, are Backroom Certified and are one of a few Target Preferred Service Partners. This means we can go into Target’s backroom, locate inventory and move it to the sales floor. It also enables us to do independent task completion like printing new shelf tags and locating ISM shipments. The benefit is a better-trained field team, with more access, able to complete services more quickly.

Question 3: What’s your field coverage?

It’s important to choose a retail merchandising partner that can service your retail locations. For example, if you sell to Target, does the firm you are working with hire at least one field rep for every Target store? Having the consistency of one merchandiser serving the same store every week is crucial for data consistency and quality control.

RMS Reference: We hire reps for 100% of Target stores and assign reps to a specific home store.  These reps are in their home store at least once each week.

Question 4: Is merchandising your specialty and what’s your company’s experience in it?

Beyond field reps and field coverage, you want to vet the company as a whole, in particular, you need to understand if merchandising is their specialty and what their experience in it is.

Some agencies that offer retail merchandising offer other services as well. While this is fine and may be a great fit for some brands, it may impact the level of service you receive so it’s worth understanding what their focus is and if they can go as in-depth on your in-store needs as you desire.

RMS Reference: We focus exclusively on retail merchandising and are proud to be Gold Certified for retail service management standards by the World Alliance for retail excellence and standards.  RMS screens and hires, and trains solely to meet merchandising excellence.  Even the teams at our corporate office are primarily former manager level and above from Target stores.

Question 5: What level of customer service can I expect?

Finally, be sure to understand what level of customer service you can expect from your merchandising partner at all levels. Check to see what type of contact you’ll have. For example, will you have an assigned person who will handle every aspect of your account? Or will it be a “waiting for the next available rep” type situation when you call?

RMS Reference: Not only are our field reps experts but our clients are assigned their own account team with one point of contact. Even our corporate leadership team knows every one of our clients so no matter who picks up the phone, they’ll be able to help you without you having to repeat your whole story to them.

Whoever your partner with for retail merchandising, be sure to vet them against your business goals. They should be able to thoroughly and professionally meet your in-store inventory needs.

See if we’re the right fit for your merchandising needs and contact us today!

Contact Us

The post 5 Questions to Ask Retail Merchandising Firms to Maximize In-Store Sales in 2022 appeared first on RMS.

Let’s dive into why it’s so important to pay extra attention to in-store shoppers and look at their behavior and what brands can do to capture their precious dollars.

All About Purchase Decisions

How many decisions are made at the store?

Despite the increase in online shopping, brick-and-mortar retail isn’t going anywhere anytime soon. In fact, while 27% of consumers make an online purchase every week, 40% of consumers physically go shopping on a weekly basis. Furthermore, 70% of consumers count the ability to purchase in a store as impacting their choice of brand and retailer.

So, do in-store shoppers use the internet at all? Yes. 74% go online to do research, see if an item is in-stock, or check store hours, making it imperative that retail suppliers have a strategy to make sure their items are in-stock and up to date.

And for those worried that the “kids these days” will drive a decrease in foot traffic, that’s turning out not to be the case. Gen Z, the most digital generation yet, actually prefers to shop in-store. 81% report that they prefer brick-and-mortar because it helps them discover new products and more than half indicate that it’s precisely because it helps them disconnect from their phones.

The numbers are in folks and they’re looking good for retail suppliers. Even a global pandemic couldn’t wipe out people’s passion for retail therapy. Indeed, it may have fueled appreciation for it.

But what does this all mean for in-store retail strategies? If the foot traffic is there, how can brands capture purchases?

Two Foci for Retail Suppliers: Planned and Impulse

Brands need to have a two-pronged strategy to maximize their in-store sales.

First, they need to prepare to meet customer expectations. For instance, if that customer has gone online and checked to see if a product is in stock and shows up at the store to purchase it, that item had better be in stock. The consequence of it not being in stock? A bad brand experience, an unhappy customer, and a competitor captures those dollars and perhaps all their future business. In other words, risking a domino effect.

Second, brands need to capitalize on impulse decisions and retail therapy shoppers. In fact, 84% of shoppers have made impulse decisions when buying in-store. This is a huge opportunity that brands need to embrace and capitalize on with visual merchandising.

Visual merchandising at its core is making sure your inventory stands out from the crowd via packaging, in-store marketing, and in-store promotions.

But what happens when you have a visual marketing strategy but the retail execution levels don’t go according to your plan?

Retail Execution Levels

Most retail suppliers choose one of two options to meet their retail execution needs: relying on the retailer or partnering with a third-party retail merchandiser.

What do execution rates look like when using just the retailer’s resources?

There’s no one number to point to as it varies retailer to retailer, store to store, and brand by brand. It will even vary from week to week. And the retail labor shortage isn’t helping anything. But what we’ve seen as have other merchandisers is execution rates hovering around 40% when it’s up to just the retailers.

What’s more telling is how brands struggle to have an accurate view of what’s going on with their inventory when it’s in the store and how much (25%) of sales are lost due to poor retail execution.

To understand your brand’s retail execution rate, you need to look at a few factors:

• On-Shelf Availability: is your inventory where it should be or is it in the backroom?
• Endcaps and Promotional Displays: if you secured a promotional display, is that display where it should be? Is it set according to your planogram?
• Retailer Knowledge: is the retailer staff able to answer questions about your product? This is especially helpful for electronics.
• Pricing and Promotions: are the prices on your products what they should be? Are your promotions, like instant redeemable coupons, being placed?
• Planogram: are your products being executed according to your planogram?

You’ll want to track trends over time to get a feel for seasonal changes, consistent gaps, and most importantly – to understand how many sales are missed.

There’s a glaring problem with this though, how can you measure retail execution rates without having a good grasp of store-level activities?

That’s where third-party retail merchandising partners come into play.

How Third-Party Partners Improve Execution Rates

Third-party retail merchandisers like RMS help retail suppliers by conducting store-level audits and inventory maintenance to make sure your sales are maximized. This helps brands trust their retail data and make better decisions based on real numbers, not estimates.

See all of our services here: https://www.rmservicing.com/services/

Increase sales, profit margins, and minimize lost revenue by partnering with a third-party retail merchandiser. Make more strategic decisions based on good data to make sure your brand is prepared for tomorrow and next year.

See if we’re the right fit for your retail merchandising needs!

Get in touch with us today!

The post Maximize Sales: Visual Merchandising and Retail Execution Rates appeared first on RMS.

Why engage a third-party merchandiser though?

Shouldn’t the inventory be taken care of as part of the retail agreement? Yes, to some extent. However, there are many more steps and opportunities for lost sales than one might expect. Perhaps most alarmingly for retail suppliers is that the average retailer execution rate (with no third-party help) hovers around 40%. And that was pre-pandemic. Imagine, only 40% of your expensive endcap displays get set correctly.

Keep reading to discover why this challenge persists and how suppliers can overcome it to make sure they meet their sales targets.

The Problem: When In-Store Execution Falls Short

Retail brands face a massive challenge once their inventory hits their retail partner’s backroom. There is simply not enough labor to ensure that every item gets set correctly. We are not here to point fingers. Retail employees are working every day to make sure inventory gets the love that it deserves once it’s in the store. However, there are too many items and too few hands to properly account for everything.

These problems have existed for years but with the pandemic, the labor shortage has become increasingly pressing, with retailers and the brands that sell at them experiencing dipping execution rates.

Retail workers are quitting at above-average rates, even compared to the massive labor shift across all industries, with 4.4% of the retail workforce having quit recently. And retailers aren’t having much luck backfilling the shortage. So is it any surprise that execution rates are less than what they were?

The challenge is bad enough on store shelves but what about when you’ve invested heavily into end caps and other displays? Having a messy, understocked display not only reduces the number of sales you’ll make; it’s also doing damage to your brand.

Let’s explore some of the other impacts of poor in-store execution.

Take a look at the chart below.

An empty shelf is by far the leading cause of lost sales.

Main Causes of Lost Sales in the Retail Industry (in billion U.S. dollars)

Source

Not only does a brand miss out on a sale when a customer can’t find what they’re looking for, but they also risk losing that customer for life.

Why wouldn’t that customer just switch once and then come back to their original choice?

Well, now they’ve had a poor brand experience with your brand and are frustrated. This could leave a sour taste in their mouth and make them think twice about buying from you again. And secondly, now they’ve been given an opportunity to try the competition. What if they find they like it more? Whether it’s a better price, quality, or value, you never want to risk losing a life-long customer because of a simple out-of-stock.

Differentiation: Why Standing Out Matters More than Ever

But we can’t just talk about what happens when things go wrong. What about when things go according to the status quo and it’s still not enough?

That’s where differentiation comes in.

Brands have to compete for customers’ fleeting attention spans. That means in-store marketing and visual merchandising. Make sure that there are coupons and bright colors and something about your product that screams, “pick me! I’m the best!”

40 – 80% of all purchases are impulse buys. Even at the low end of that range, that’s an enormous amount of sales that depend on product and displays being visually appealing enough to attract those last-minute decisions.

The Solution: Merchandising Partners

While in-store retail execution rates vary from store to store and day-to-day, adding a third-party retail merchandiser like us can increase execution rates by 40 – 50%.

What can a retail merchandising partner help brands with?

Retail merchandisers provide suppliers with many services, including:

• Endcap and display management: make sure that your displays look the way they’re supposed to
• Instant redeemable coupons (IRCs): draw customers’ eyes with attention-grabbing coupons
• In-store marketing execution (ISM) and Maintenance: increase sales by as much as 20% by differentiating yourself from the competition
• Planogram maintenance: don’t let the point of sale be the reason you miss a purchase
• Reset and revision audits: as new planograms are only compliant 50% of the time, this is a crucial service for any supplier
• And more!

Don’t let your inventory sit or get lost in the shuffle. Make sure your inventory gets all the attention it deserves. Partner with a retail merchandiser to be confident that your in-store strategy is executed on and your sales are maximized.

Give us a call today!

The post Why In-Store Execution Matters: Endcap and Display Management appeared first on RMS.