Capture Holiday Dollars with Eye-Catching Displays

Eye-catching displays are the key strategy to draw in this year’s holiday consumer. Displays continue the visual narrative that the consumer experiences online. This is a factor of growing importance as omnichannel merchandising becomes more expected. Endcaps and displays are also a perfect vehicle for cross-sells and bundles. This year, 30% of businesses are focusing on cross-selling opportunities, which combines the prioritizing of deals as well as a growing trend of meeting customers where they are.

Endcaps and displays provide strong lifestyle visuals, memorable branding imagery, and information about deals, as well as an opportunity to place complimentary products together. A stunning display can even increase your social media buzz. Brands have found that shoppers will take a photo in front of an exciting display, and data shows that sharing on social media can have a big impact on a retailer’s bottom line. Nearly 80% of consumers say that user-generated content highly impacts their purchasing decisions, and 66% have been inspired to make a purchase from a new brand after seeing social media images from other customers.

This year’s holiday shoppers are all about the visuals, bringing expectations from their online shopping experiences and hoping that shopping itself will be an opportunity for sharing on social media. But they are also concerned with the life cycle of the products they buy. Consumers want to know where a product’s material and packaging come from, and where they might end up. Endcaps and displays are an excellent opportunity for sharing this information in a way that will impact today’s visually-oriented consumers.

Displays are Powerful – if Done Right

Endcaps and displays are a powerful solution for the challenges and opportunities this holiday season presents. But they are also a major stumbling block in the chain between brands and retailers. A third-party merchandiser can tighten up these connections to ensure that displays meet their potential for impact. RMS offers Endcap and Retail Display Services that will make the difference in in-store execution this holiday season.

Here are a few examples of past displays that we’ve serviced:

Athena Club highlights their product with visually appealing colors and larger-than-life imagery. This display emphasizes inviting product visuals to catch the eye of the consumer.

Quip uses their endcap space for storytelling.  It allows them to express what makes their product unique.  Endcap displays allow brands to provide key selling points and short copy much like an online experience.

Function of Beauty uses a soft and dreamy, on-trend ombre color palette to catch shoppers’ attention.  This specific product requires customers to purchase multiple items to match their hair type.  The display uses perfect placement to ensure products are kept in the correct order and easily step customers through the purchase process.

GreenPan’s display uses their identifiable green color to call attention to their brand, which was a well-known Direct to Consumer brand prior to entering retailers. They used their endcap space to identify each of their pan sets and uses, making it an educational and creating a value statement.

The Key to Success – Display Installation and More

The success of each of these displays was in the perfect execution of every step. First, the visual marketing was powerful. Then, the displays had to be installed. Finally, frequent audits and on-time restocking have to happen on the store floor. The financial and time investment in endcaps and other retail displays are worth it. But if your display or product never makes it to the floor, it will all be for naught.

We make sure that doesn’t happen by assigning each client their own account manager who works with the field team to ensure that endcaps and displays are set correctly and that they are fully stocked. All signage and ISM materials are serviced and documented to make sure that your investment in storytelling follows through to the consumer’s in-store experience. With 64% of shoppers reporting that the in-store experience has the greatest influence on their purchasing decision, it is clear that this step is essential to making good on your holiday goals.

Every year we are learning more about the ways that consumers interact with brands both online and in person. While at one time it seemed that one form of shopping might win out over the other, we now see that increased hybridization of the two is the order of the day. While this holiday shopping season will prove to be long and robust, it presents the challenge of keen-eyed consumers whose vision is trained on emotional narratives as well as solid deals. Keeping up appearances is essential this holiday season, but you don’t have to go it alone.

Contact RMS today to find out more!

The post It’s All About Displays This Holiday Season: Are You Ready for Your Close-Up? appeared first on RMS.

In years like this, it’s more important than ever to pay attention to every in-store detail.

Do you have in-store marketing in place? Are your planograms being executed correctly? Did your product make it from the backroom to the shelf? Are you standing out from the crowd? Are you auditing your store presence frequently enough?

All these questions and more are critical to answer. Read on to get the in-store holiday retail checklist and discover services retail merchandising partners can support you with to make sure this holiday season is nothing short of jolly.

The In-Store Holiday Retail Checklist

While managing retail store execution is complicated, the checklist doesn’t have to be. Follow these questions and make sure your in-store presentation is in tip-top shape.

• Is your in-store marketing strategy confirmed and being executed to plan?
• Did your products make it to the backroom of your retail partner’s stores?
• Is your product making it from the backroom to your sales floor locations to meet sales demand?
• Are your products set to planogram and priced correctly?
• Are you taking advantage of promotions like Instant Redeemable Coupons?

Of course, this is a simplified checklist. But the heart of a successful retail season is the same: in-store product management.

58% of consumers expect to spend less on non-food purchases this season so suppliers must focus on making sure there are no gaps in their process and no inventory slipping through the cracks. Land every opportunity for a sale by ensuring your in-store operations are in tip-top shape.

If you don’t have time to go into each retail partner, third-partner retail merchandisers like RMS can be the boots on the ground and the helping hand you need.

How Third-Party Merchandising Partners Can Make the Holidays Bright for Suppliers

Of course, we’re partial to merchandising partners because we are one. But we’re passionate about what we do because we know how much work goes into getting your products placed at a retail store to begin with. We want to make sure your product’s journey doesn’t end sitting in the backroom of a store. Here’s how we can help make sure that’s just the start of its adventure.

First, we’re Backroom Certified at Target. This means we are able to work independently in stores – locating product in the backroom, pulling inventory to the sales floor, printing shelf labels, and looking at store-specific planograms. No matter who you partner with, this is important. Without this certification, your retail merchandising partner is severely limited in what they’ll be able to do for you.

Must-Have Retail Merchandising In-Store Maintenance Services

Make sure your product is getting the attention it deserves, no matter what shelf it’s on.

We offer:

• Planogram maintenance to keep the shelves full, products merchandised to planogram, and tagged correctly on shelves.
• Perishables maintenance to make sure your food and beverages are in stock, not expired, and rotated to maintain the longest shelf lives.

Can’t Miss In-Store Marketing and Visual Merchandising Services

Make your inventory pop and catch customers’ eyes with these services.

• Endcap and display services to maximize brand exposure on those high-value locations.
• Instant Redeemable Coupons (IRCs) to capture eyeballs, stand out from your competition and move inventory faster.
• In-Store Marketing (ISM) and Execution to tell your story and ensure your items stand out from the competition.
• Reset and Revision audits to ensure inline sets are completed, merchandised to planogram, correctly signed, and in-store marketing materials are installed.

Third-Party Managed Programs

• Scan-Based Trading Management (SBT) completes program management from receiving door to transition send-backs. RMS takes care of setting planograms, pricing, inventory management, cut-ins, and overall store execution of each program.

See all of our services here. 

Partnering with a Third-Party Merchandising Partner to Maximize Retail Success 

But what happens if you don’t have a retail merchandising partner?

Did you know that poor store execution can result in up to a 25% loss of retail sales? That’s a hefty price to pay and too steep to risk. Partners like us can boost in-store execution rates by 40 or 50%, making the return on investment more than worth it.

Don’t let your products slip through your customers’ fingers this holiday season. Follow our checklist and partner with a trusted merchandiser to maximize your sales and streamline your in-store presence.

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

The post The In-Store Holiday Retail Execution Checklist 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.

Keep reading to learn more about the trends and what suppliers can do to have a thriving season.

Trend 1: Retail Hiring Shortages

This is the biggie. It’s a tight labor market for retail workers and that doesn’t seem to be slowing down anytime soon, especially not in time for the holiday rush. In fact, 74% of retail executives report that this year their biggest pain is at the store level, with massive shortages in customer-facing positions.

This macro trend will have major implications for suppliers, depending on how their retail partners choose to cope. Before we dive into a few ways those reactions could play out, and their implications, the major takeaway from this trend is that suppliers will need to have a plan to make sure their in-store inventory is taken care of. With fewer retail workers on the floor, those that are there will be busier than ever.

Trend 2: Volume Recruitment

Speaking of hiring shortages, one of the ways many retailers are coping is by embracing volume recruitment. This looks like eliminating as many steps in the hiring journey as possible to hopefully speed up the process and get more people in the door.

However, this comes with its own challenges. While there may be more people in the door, it doesn’t mean they’re quality candidates who will help suppliers’ inventory sell. It also doesn’t mean that it’s solving a high employee churn rate.

Retailers are sure to sort this out over the long run as they hone in on their needs and what qualities make for long-term candidates but that doesn’t solve the immediate challenges facing retailers and suppliers this holiday season. Suppliers still need a way to make sure their inventory is managed in-store by highly trained professionals.

Trend 3: Shortage of Candidates and Recruiters is Here to Stay

Compounding the hiring challenge is that there’s not just a shortage of candidates, there’s a shortage of recruiters – nearly 7 times the number of vacancies that there were in 2020. This means that the whole talent pipeline is being squeezed.

But what’s driving the trend?

The pandemic forever shifted how people view work. And in a more competitive labor market, $15 an hour isn’t enough to attract and retain top talent. But it’s not just pay. Flexibility for working parents is crucial and many parents have been forced to find creative solutions that allow them to structure their days around their children, especially when schools are closing and illness abounds. Finally, the digital age is well underway and retailers are shifting to internet-based operating models that don’t depend on the same physical labor they used to and workers are taking note and planning for their own long-term job security.

Trend 4: Inflation

To complicate matters for suppliers, inflation is rising, which means consumers are looking for deals. Right now, inflation is the worst it’s been for more than 40 years.

When inflation rises, wallets tighten and customers are on the lookout to save a few bucks. This means competition in-store for eyeballs and dollars is going to intensify.

Suppliers can embrace strategies like instant redeemable coupons (IRCs) to catch shoppers’ attention and incentivize them to make a purchase with 90% of consumers more likely to purchase a product if they see an opportunity to instantly save.

Trend 5 – Early Holiday Shopping

To capitalize on deals and maximize savings, 42% of shoppers will start their holiday shopping earlier than ever. We’ve already seen back-to-school shopping start early this year and Amazon Prime day and its competition from other retailers was one of the biggest ever.

What this means for suppliers is that they need to be ahead of the game and start their holiday discounts and sales ASAP.

Solution: What Retail Suppliers Can Do to Counter Pressures

With pressures stacking up from all sides, what’s a retail supplier to do? Pay extra attention to their in-store inventory. Here are the three priorities to focus on this season:

• Priority 1: Getting Inventory to the Floor on Time – because of the dual pressures of a strained inventory pipeline and a retail labor shortage, it’s crucial to pay close attention to making sure your holiday goods arrive at the retailer on time and that your retailer has the labor allocated to get it to the floor. And if they don’t, consider partnering with a merchandising partner that can fill that gap.
  
• Priority 2: Securing High-Traffic and Highly Visible Locations – endcaps and promotional displays aren’t just valuable locations because of higher sales rates. They’re also what retailers pay the most attention to. Maximize sales by grabbing one of these displays but be sure to keep an eye on product you have in these to make sure you’re getting the most bang for your buck.
  
• Priority 3: Don’t Forget Promotions! Run both in-store and digital promotions. This two-pronged approach will guarantee you get as many eyeballs on your deals as possible and drive in-store purchases.

Merchandising partners, like RMS, can help ensure your products make it to store shelves and those costly endcaps and displays are set and stand out. Merchandising companies can also help get late-arriving product out to the floor after missing a reset. Proactive brands who take it upon themselves to step in to help solve the current labor constraints will benefit with fuller shelves, good-looking displays, and most importantly a win with customers.

Interested in maximizing your sales this holiday season? Give us a call today to see how we can help.

Contact Us

The post Five Trends That Will Impact 2022 Holiday Sales appeared first on RMS.

How are Consumers Feeling about the 2021 Holiday Season?

Consumer confidence is key to high sales in any season but especially during the crucial gifting holidays. This year, consumers face a unique cocktail of external pressures that will impact their spending.

Fortunately, the news is good.

While there will certainly be changes to how people celebrate, out of safety concerns, most people are feeling more confident about gathering with friends and family this year for Thanksgiving, Christmas, and beyond. Here are a few highlights that indicate that consumers will be spending, celebrating, and getting out of their homes this year.

For Thanksgiving, more than half of consumers will spend at least $75 on food and other related celebrations and a third will be spending more than $100, in line with past years although one-fifth of consumers are likely to spend more than they have in the past.

In-store shopping rates are also expected to rise from last year, with 47% of people planning to grab at least some gifts from physical shelves.

Perhaps most telling is that consumers are expected to spend more than 20% this year than they did last year, totaling an average of $1,447. And it’s not just on gifts for others, an average of $442 of those dollars will be spent on pampering themselves, indicative of higher levels of consumer optimism and a reaction to a tough two years.

How are Large Retailers Preparing for the Holidays?

The National Retail Federation is predicting holiday sales to reach $859 billion, an increase of 10.5%. Yet there are significant challenges that retailers are already preparing for including:

• Having enough in-store and online inventory available
• Supply chain backlog
• Labor shortages

But the good news is there are forces that should lead to higher sales, too, including:

• Covid-19 booster shots are being administered,
• Vaccines for children have been improved,
• People are returning to work, leading to more foot traffic and greater spending confidence,
• And surprisingly, La Nina the weather pattern that leads to cold and wet winters is correlated with a spike in sales.

Large retailers like Target, Best Buy, and Walmart are pushing early sales as a way to meet customer demand and encourage strong sales, even with the inventory and labor challenges. Some of the common themes are campaigns like:

• Holiday promotions and events earlier than normal
• Exclusive access for longtime customers
• And pushing people to not wait to buy something they want

Retailers and brands alike should also expect these challenges to last beyond the holidays. For instance, shipping vessels are only arriving on-time 40% of the time while the price has increased by 360%.

Retailers will continue to hone the accuracy of their demand planning and be more flexible than ever before. But retail suppliers should also pay attention to their own capacity and be creative about how to end the year with strong sales.

What Can Retail Suppliers Do to Make the Holiday Season Run Smoothly?

The name of the game this year is flexible proactiveness. Brands that are reactive to consumer demand, shipping challenges, and labor shortages will be behind and their sales will suffer before they have time to blink.

On the other hand, suppliers that are able to anticipate a changing retail environment will be able to quickly adapt their available inventory and get it into the hands of waiting consumers.

Be Flexible and Proactive

Don’t be afraid to offer replacement ideas. Many consumers will not be able to fulfill their shopping list exactly as they’d hoped. But just because the sweater they had their eye on is out of stock doesn’t mean suppliers need to miss out on a sale. Be creative and offer alternative ideas to your customer base through a mix of omnichannel marketing and in-store promotions.

Be Communicative

Customers and retailers understand the unique retail environment this year. Don’t be afraid to acknowledge when inventory is running behind. Communicate when to expect shipping delays and if needed, offer incentives for consumers to spend their dollars with you.

Be Prepared

The best offense is a good defense. In the case of retail suppliers, that means having a trusted in-store team who can make sure that product makes it from the backroom to the shelves and once it’s there, looks the way it’s supposed to based on your planogram. Services like retail audits and planogram maintenance can help brands stay on track with their sales targets.

The word “unprecedented” got worn out last year but it is fair to say that this holiday season is yet another, unprecedented challenge. Fortunately, despite the obstacles, optimism remains high. As long as you are prepared and stay on top of inventory changes, the season should remain jolly and successful.

Contact us today if you need an extra set of eyes and hands making sure your product is set, stocked, and priced correctly!

Please note that our December slots are running out fast! Contact us today to get best-in-class merchandising support!

Contact Us

The post Preparing for the Holidays: Retail Outlook 2021 appeared first on RMS.

These manifold challenges are causing retailers and suppliers to come up with creative solutions to make sure their sales targets are hit. Keep reading to learn more about the state of holiday retail this year and how suppliers can maximize their revenue opportunities.

State of Holiday Retail 2021

Retail sales are projected to increase by 7% in 2021, compared to 2020. However, with retailers facing the double threat of worker shortages and COVID-related outbreaks, their already stretched supply chains are getting worryingly tenuous. These forces are expected to cause further delayed shipping times, lower in-store inventory, and even fewer discounts.

While consumers may want to start their holiday shopping earlier this year, retail suppliers are already scrambling. After all, empty shelves aren’t a “win” for anyone.

Unfortunately, the biggest tangle seems to be in shipping logistics. Inventory isn’t making it through ports. According to Neel Jones Shah, global head of airfreight for Flexport, “Covid has turned supply chains on their head. We’re seeing an astronomical rise in shipping rates, a dramatic lengthening of transit times, and a logjam of cargo at every port. Shippers are scrambling to figure out how to get their goods to market in time for the Christmas selling season.”

Take a look at the chart below. Freight cargo delivery times are longer now than at any point during the last year and a half.

Retail giants, like Target, are responding by upping the number of hours staff will work and reimagining their seasonal employees. In fact, Target has said that they expect their current 300,000 employees will work more than 5 million additional hours during the holidays. They’ll also be hiring 100,000 seasonal employees, though this is 30,000 fewer people than in previous years.

What’s a Retail Supplier to Do?

Even though there’s no getting around the complexity of this year, retail suppliers don’t need to lose hope. There are still ways and time to make sure that this year’s sales targets are met.

If you are aware of the supply chain and labor shortages, congratulations! You’re on your way to being prepared. Be sure to document any potential backups in your own supply chain and create contingency plans to cover missed revenue.

Some are choosing to increase their prices and others are choosing to slim down their offerings. While there’s no one right answer, be sure to project out the financial impact of all of your options.

One Cost-Effective Step to Take for Peace of Mind and More

If you find yourself in this position, with inventory backlog and labor shortages at your retail partner, it will be especially important to pay close attention to store execution once product arrives at the store.

The best way to make sure your products are selling?

Making sure they get to the sales floor and are set correctly.

That’s where reset and revision audits by third-party retail merchandisers can come to the rescue.

RMS  offers Target-exclusive services as a Preferred Partner. For less than $10 per store, you can confirm that your products made it to the shelf and POG plans have been executed across retail locations. And, if they’re not, we can also fix them to make sure you’re set and ready to go in time for the holiday traffic.

Make sure your product gets the attention it deserves this season, contact us today!

The post How to Ensure Retail Execution During the Holiday 2021 Season appeared first on RMS.

The ongoing complications with supply chains are causing headaches for retailers and suppliers. Let’s take a look at what’s going on and how suppliers can prepare for the upcoming holiday season.

What’s Going on With Retail Supply Chains?

One year after “Shippageddon,” global supply chains are still tangled worse than an old fishing line. Shipping prices are skyrocketing, delays are worsening, and retailers, suppliers, and consumers are wondering if they’ve already fallen behind on their holiday wish lists.

But what’s driving these challenges? Bottlenecks up and down the global supply chain. Three driving forces are:

1. Increased consumer demand: after the initial spending freeze when COVID-19 first hit, consumers started to open their wallets back up, especially after the stimulus checks in 2020 were mailed out. And where did much of those dollars go? Online ordering. Those e-commerce orders added up to a 44% increase, further straining supply chains and delivery services.
   
   
2. Shipping container capacities are maximized, especially as ports in China have been grappling with COVID-19 outbreaks. Less space means backlogs for months and uncertain timing as new outbreaks crop up.
   
   
3. And due to the decreased shipping space, shipping prices have skyrocketed, further complicating matters for retailers and suppliers who carefully project their needed margins months and months ahead of time. Rob Garf, Vice President and General Manager of Retail at Salesforce predicts that “U.S. companies will spend $163B more on ocean freight in the second half of 2021 than they did in the second half of 2020.”

Later in the supply chain, package delivery is also running behind as evidenced by UPS CEO Carol Tomé saying, “Package delivery demand during the 2021 peak season is projected to exceed capacity by about 5 million pieces per day.”

All of these forces combine to create the perfect storm, one that’s not going away any time soon. With the holiday season already on our doorsteps, this is especially crucial for retailers and suppliers to pay attention to.

What’s Happening with Retail Labor Shortages?

To complicate matters even more, we’re in the midst of a retail labor shortage. The Department of Labor estimated there are about 965,000 job openings in retail.

Retailers are responding by upping their offer. For example, Walmart announced they will hire 20,000 workers and will be paying supply chain associates $20.37 per hour and had raised their hourly rate to $15.25.

But will incentives like this be enough? Only time will tell. But in the meantime, suppliers should be aware that labor shortages are a reality and can impact in-store retail execution, particularly in advance of the busiest shopping season of the year.

How to Prepare for Holiday Retail Execution

How can suppliers prepare to make sure their sales don’t suffer this year? It’s not enough to hope and brace for impact. Rather, get ahead of the game by padding your in-store merchandising team to maximize sales opportunities.

Here are three things to keep an eye on this season that a retail merchandiser can help out with:

1. Displays

Pay attention to sidecap and endcap displays. These prime real estate locations are not to be wasted. Make sure you have consistent eyes on them and someone making sure they are set, frequently stocked, and priced correctly, even if your product is late arriving. Services like RMS’ Display Services can fill this need for suppliers.

2. Planogram Maintenance

With 70% of purchase decisions made at point of sale, you can’t afford not to have your products in stock and engaging to the customer.  Don’t let late arriving products and strained labor affect your product placement.  Partner with a retail merchandiser who can maintain your planograms as if they were their own.

3. Holiday Set Audits

Speaking of planograms, did you know that only 50% of them are set on time and correctly? That number is bound to get worse this year. Prioritize an audit service to make sure your precious inventory isn’t left behind.

RMS is here to help with all of these services and more.

BONUS: if you are a Target supplier, check out our Target exclusive services.

This year is shaping up to be a retail holiday season like only one other: 2020. Taking the collective lessons learned last year and applying them to now will help suppliers navigate the complex sales season and mitigate retail supply chain and labor shortage challenges.

Make sure your products shine this holiday season. Contact RMS for a free consult today.

The post Supply Chain Delays and Labor Shortages: How to Prepare for Holiday 2021 appeared first on RMS.

How Excess Inventory Hurts Brands and Retailers

There are a handful of reasons why you might have leftover inventory. Maybe you simply overestimated how much product you’d sell and now have a surplus. Maybe the retailer’s automated forecasting and allocation system wasn’t fine-tuned resulting in pockets of inventory in the store chain. Whatever the cause is, the result is the same: excess inventory.

These items cost you money to produce, package, ship, and get into the retailer in the first place. Now, they’re taking up valuable inventory dollars at your retail partner and taking up shelf space.

You can cut down on excess inventory in the future with better forecasting and retailer allocation. However, if you’re stuck dealing with excess inventory now or will be after the holidays, continue reading to learn how to get rid of it.

5 Ways to Deal with Excess Inventory

First, decide what is considered excess inventory. Generally, it’s defined as inventory levels that are higher than the planned sales turn. Since every product is different, you’ll need to decide with your retail partner. Once you have determined that you have “excess inventory” you need to decide what to do with it.

1. Do Nothing

If your products don’t expire or are not seasonal you may be able to leave them where they are. This tactic works best for non-perishables and household staples, like detergent, that people need year-round. If your products fall into these categories, great! However, be sure that no matter what type of item you supply, you’re consistently checking your inventory turnover rate to ensure that your products are selling as they should. If you have a surplus, you may need to hold off on your next shipment to get your inventory levels back to where they should be.

2. Returns

Consider making a deal with your retail partner to return any excess inventory to you. This is especially useful if you believe you can resell it. Make sure that you’re factoring in the cost of the return, storing, restocking, and all other associated expenses to see if this is worth it. This works best if you can easily repurpose or resell your inventory. Maybe you just need to repackage it or can ship it to a different location.

3. Reuse, Recycle, Regift

If you can’t sell or reuse your excess inventory, you could consider disposing of it in a responsible way, preferably recycling whenever possible. Make sure that any inventory that you don’t sell is recorded so you can write it off and at least recoup some of your inventory cost.

Also, think of unconventional ways you can deal with your inventory. Donate it to charity, gift it to your employees, or look up recycling programs near you. Most of the time you can still take the write-off with these disposal methods. Even better, you can help make someone’s day or use it as an employee morale booster to increase employee engagement.

4. Sell it NOW – Discounts!

You can still try to sell your extra inventory, even if they’re past their holiday prime. One effective method to do so is by using Instant Redeemable Coupons (IRCs). These coupons are physically placed on your inventory while they’re still in the store. They can be eye-catching and draw shoppers’ attention. Plus, people love a deal.

• IRCs allow you to focus incentives by market or problem stores, saving you from a chain-wide markdown.
• Moving through the inventory at the store saves return shipping and handling costs.
• The incentive does not have to be a huge discount to nudge someone to buy it. Even a label that reads, “$2 off!” can have an enormous impact.

90% of consumers are more likely to buy a product (or switch from a competitor’s brand to you) if they see a label that will give them instant savings!

Source: Consumer Report by Luminer 

5. Use the Data!

Finally, you should monitor your analytics and inventory systems year-round. Use equations like inventory turnover to see how quickly your products are selling. Drill down into the individual product lines to learn what items are performing better than others. This should inform your forecasting and help you get closer to consumer demand.

Don’t forget that if your inventory isn’t selling, it may not just be a lack of consumer interest. Your inventory could be missing, misplaced in the backroom, or not being counted accurately at the point of sale (read our article on Phantom Inventory to learn more about this problem). Perform physical counts and compare them to your retailer’s inventory system. Check to make sure that every system and process is tracking your items correctly.

Preparing for Holidays 2020

Once you figure out how you’re going to unload your extra inventory from the 2019 holiday season, it’s time to think about 2020. Pay close attention to your sales this year. What types of items sold fastest? What products didn’t sell? While trends do change from year to year, it’s always a good idea to sit down and analyze how each year went and to begin forecasting for next year. The more accurate your projections are, the less excess inventory you’ll be stuck with this time next year.

Learn more about how Retail Merchandising Services can help you sell your excess inventory by using IRCs and more!

Contact Us

The post 5 Ways to Get Rid of Excess Inventory appeared first on RMS.

First, make sure you regain store-level inventory integrity.

Before anything else, you need to know what inventory you have on hand. This time of year is more complicated because of the massive amount of returns that pour through the door every day.

Check those processes that can affect inventory counts. Too often a simple error in a process or system gets overlooked and skews the true count. Check to make sure that you’re error-free in the following systems:

• Receiving – are your shipments reaching the retailer? What about your items that customers return to the retailer?
• Backstocking – how are your products faring in the back room? Are all items accounted for?
• Point of Sale – Are products scanning correctly and accurately at the register. Check your margins as they can be an indicator of POS gone wrong.
• The Retailer’s Inventory Audits – When did the retailer last take physical count of your inventory and what is the cadence for the next count?

Read our article on Phantom Inventory to learn more about how to prevent it.

Next, embrace the return process and improve it.

Once you feel good about the state of your inventory, it’s time to check on the return process. How do customers return your items? Of course, you hope it never happens but sooner or later it will. Returns can be tricky because you may not have control over your customer’s experience as they usually return it to the retailer from which they purchased the item. Unfortunately, if they have a bad experience with that retailer, they may associate it with your brand too. Post-holidays are a perfect time to examine the return process as 25% of all returns take place after the winter holiday rush.

Here are a few tips to make it a surprisingly enjoyable experience and build customer loyalty.

When Returns Come Back to You

If you allow customers to return items directly to you, maximize that opportunity. Make it easy by offering free shipping on returns, suggest personalized recommendations as appropriate, and don’t forget to thank them for their time and purchase.

• Make it Easy – Don’t hide your return policy in the depths of your website or make your customers call multiple people to figure it out. Make it as simple as clicking a button or two and printing a shipping label. Bonus points if you can offer free or discounted shipping.
• Express Gratitude – Even if they’re returning a purchase, your customer still spent time and money on it. Show them that you recognize that with a simple “thank you” page that pops up on your website or a follow-up email.
• Survey Time! – Use this return as an opportunity to learn why the customer is returning the item. A quick survey that asks them “why?” can shed light on your customers’ behavior.
• Personalized Recommendations – As part of your follow-up communications during the return process, often through email, add in personalized recommendations. Consider adding verbiage like “We’re sorry your purchase didn’t work out for you but we think you may be interested in this other item!” Adding an incentive like a 10% off your next purchase can also be a great way to continue to build customer loyalty at the point of a returned item.

Online to the Retailer

What is the online return experience like at the retailer? Make sure you go through it as a customer would. Do you feel listened to or frustrated? Doing a simple test can help you better understand your own customers’ return experience. Make notes of what you didn’t like or opportunities you see for improvement and pitch it to the retailer. While they’re not likely to implement a huge change, adding a simple message like a “thank you” email or page is pretty painless and can help not just you but their store as well.

In-Store at the Retailer

Like the online returns, try standing in line at your retail partner to understand what your customers experience. Make suggestions as appropriate to the retailer. Helping them improve their own return experience will benefit them too. See what your customers see while they stand in line. Is there an opportunity for cross-promotion? Ever considered Pop-up displays to capitalize on impulse purchases while they wait? Get creative about how to turn that waiting line into something fun for your customers and profitable for you. Pay extra attention to exchanges as more than 60% of customers want to replace the items they’re returning.

Regardless of how items get returned to you or to your retail partner, that experience reflects on your brand. When customers have a positive return experience, 96% of them will shop with that brand or retailer again. Make it easy for your customers and do everything that is within your control to thank them and continue building trust with them so they’re loyal to your brand next holiday season.

Then, get creative and entice customers to buy more with an experience.

People want an experience. If they’re going to spend money or time, they want to enjoy themselves. Make sure you’re capitalizing on this both at your retail partner and online.

Pop-Up Stores & In-Store Displays

Embrace the possibilities of what you can do in-store with pop-up stores and other visual merchandising options like endcap displays.

Pop-up shops are gaining traction as fun and interesting way to engage shoppers while in a store. The men’s fashion director for Bloomingdale’s Inc., Justin Berkowitz, says about pop-up stores, “I really think that for the future of retail, it’s important to make ‘brick-and-mortar a place where the customer really wants to come.’” Pop-ups engage customers and are successful, even for large items like furniture. Lovesac Co. reports that 10% of their annual sales come from pop-ups. You can do the same thing with your returns.

If your customers are standing in line, like for returns, make that time count for something. Work with your retailer to have additional items next to them. Make it themed so it stands out visually and highlight post-holiday sales. Have your retail partner train their staff to cross-promote related items.

Putting holiday items in a pop-up store, even in January, can help add excitement and help those leftover products sell. You can even resell returned items in a pop-up experience to turn a bigger profit. REI does a great job of this with their “Members Only Garage Sale!” event where members get enormous discounts and also feel like they’re a part of something exclusive.

You don’t have to sell items at full-price to turn a profit. Discount strategically while elevating the shopper experience so your customers feel like they’re part of something exclusive rather than having to dig through bargain bins.

Personalized Offers

People love when stores and brands pay attention to them. Show them that you understand who they are with personalized offers. It could be as simple as an email to your loyal customers with a one-time discount “just for them” when they shop at this retailer and buy your product. Driving home that you value them plus adding a sense of exclusivity to an offer can help boost sales by sending people running to the store to grab that item “while supplies last.”

Also, don’t forget about discounts!

People love a deal. And, as everyone knows, after the holidays is one of the best times of the year to save big, so don’t waste this chance. But before you rush into slapping steep discounts on everything, try a few tricks to help both your customers and your bottom line win.

Themed Bundling

It’s 2020. A new year, a new decade. Re-purpose your holiday gifts under a New Year’s Resolution theme. If your brand specializes in athletic equipment, try bundling a few items together and branding it as a “New Year, New You” package. Or maybe your brand is all about food. Bundle a few different flavors together and call it a “Sampler Package.” You can still discount the package but by bundling multiple items into one price, it creates a sense of savings (and excitement) for you customers.

Instant Redeemable Coupons

Inevitably, you’ll need to discount some products. The great news is, it’s easier than ever to do so with Instant Redeemable Coupons (IRCs). IRCs are stickers or hangtags that a retail merchandiser can do, on your behalf, directly in the store. All you need to do is decide what discount you want to offer, design the sticker, and let your retail merchandising partner do the rest.

Finally, consider donations, auctions, and liquidations if you can’t sell everything.

Once you’ve exhausted your other options, consider ways to unload any remaining inventory. Donating appropriate items to causes near and dear to your brand is a great way to help others and still benefit from a business write-off.

If you’re interested in recouping at least some of your revenue, consider an auction marketplace to resell returned or leftover items. Approved business buyers will then bid on your items and the sheer scale can help you recoup much of your initial investment.

Liquidation and online auctions are good as a last option. Because of the time you’ll spend on these, it’s usually more lucrative to try and sell your excess inventory in-store first, even at a steep discount.

January is a busy month but that doesn’t mean it has to be a sad one. Make a New Year’s resolution for your brand to think about the post-holiday season as an opportunity to try something new and creative with your excess and transitioning inventory.

If your New Year’s resolution is to handle your in-store inventory more efficiently and build a stronger relationship with your retail partners, consider partnering with Retail Merchandising Services, Inc. We specialize in making your products fly off the shelves and are the best in the biz. Contact us today!

The post Holiday Hangover: How to Work through Excess and Transitioning Inventory Post-Holidays appeared first on RMS.

 But as a brand, how do you craft an effective strategy and deliver a memorable experience?

1. Make it easy for your customers to interact with your brand.

The vast world of retail shopping is now a complex blend of eCommerce and traditional brick-and-mortar stores. Customers are accustomed to being able to complete their purchases with a few taps on their smartphone and expect to be able to research a product before buying, no matter the channel. Brands that cannot provide a seamless experience on the web, as well as in-store, will fall behind.

72% of customers do their research online before making an in-store purchase but 94% of all retail sales still come from brick and mortar stores. (1) Yet, only 8% of businesses believe that they are successfully integrating their customer experience. 

Clearly, people still love to shop at physical locations but are expecting more out of the experience than ever before. Make sure that you are providing enough digital content to engage with your customers so when they choose to enter a store, they head straight for your product. 

65% of customers who feel inconvenienced say they will never use that brand again. 

Let’s face it, we are all picky about where we spend our time and hard-earned money. ECommerce has transformed how we define convenience and expectations are high for high-quality experiences. Brands must make it easy for customers to return items and to give feedback on their experience. People want to feel heard and valued and if they feel like they aren’t, they’ll make sure your brand hears about it and you risk not only losing their continued business but anyone else’s in their network.

 Put yourself in your customer’s shoes and simplify how they interact with your brand. Your bottom line will thank you.

2. Stand out from the crowd with visual merchandising.

A great customer experience delights the customer and can be accomplished not only through a great purchasing process but also through superb visual design. How your products are displayed and how they’re branded will make all the difference when a customer is choosing between your product and a similar one right next to it. 

 For the holidays, this means taking advantage of the festive spirit and creating a visual experience that entices and intrigues. Are you packaging your products together? Are you making it easy for customers to buy not just one of your items but multiple? For example, if you’re a haircare company, package your shampoo and conditioner together, tied with a big red bow. It’s simple but effective. Give customers a reason to choose you.

 However, this goes far beyond bows. If you’ve ever walked past a window display that took your breath away, that’s visual merchandising done right. The iconic scenes from holiday movies in New York always include a window-shopping sequence for a reason: great retail displays are appealing to everyone. Don’t miss out on revenue because you are doing the same thing you do the rest of the year. Think differently, think about how to “wow” your customers this holiday season. 

 Visual merchandising isn’t just window displays. It’s also in-store displays that stand out. But no matter where your product sits, visual merchandising should do three things: engage shoppers, reflect your brand, and entice customers to make a purchase.

3. Don’t forget about retail merchandising.

Visuals are fantastic and are what first appeals to a customer. Yet, as any retailer knows, the magic happens behind the scenes and that means cold, hard numbers, planning out every detail, and staying on top of what’s going on with your products inside the store.

Retail merchandising, at its heart, is a process that helps maximize retail sales. This can be done through a variety of tactics including on-site demonstrations, signage, planogram design and maintenance, product stocking, and inventory management. 

50% of items set inline are executed incorrectly by the store; this grows to more than 60% if your product is placed in multiple locations like an endcap or display. (Shop! 2015 Study)

It’s expensive to place your product on the shelf, not to mention what it costs if you’re displaying in multiple locations. Yet stores are unreliable in executing your vision, which leads to lost sales and you may not even be aware of it.

70% of customers are willing to switch brands if their preferred item is not in stock. (Shop! 2015 Study)

 Your product must be where it’s supposed to be and in stock if you want people to buy it. If you don’t have insight into or aren’t managing store level inventory properly, the cost will be drastic.

This is where retail merchandising comes in. Retail merchandising ensures that your product is where it should be, priced correctly, in stock, and inventory levels are accurately reflected.

Customer experience is all the rage right now, and it should be. Almost 65% of consumers value the customer experience more than price. Deliver on experience and your sales will skyrocket. Make sure you’re preparing for your best holiday season ever by prioritizing your customers.

4. Putting It into Practice.

 It can be overwhelming to plan all of this, not to mention implementing it across every single store where you sell your product. 

 Don’t worry.

 Retail Merchandising Services, Inc. is a family-owned business with more than 100 years of retail employment experience. In other words, we live and breathe retail. We can help you with retail merchandising and executing visual merchandising plans so you can rest assured that your customers can find you, buy your product, and have a customer experience that they tell others about.

 To talk to one of our experts today, call 877.248.5429 or email us at info@rmservicing.com. 

 We’d love to chat and see how we can boost your sales. To learn a little bit more about us, visit www.rmservicing.com. 

The post 4 Ways Retailers Can Prepare for a Successful Holiday Season appeared first on RMS.