{"id":3836,"date":"2022-02-16T09:15:00","date_gmt":"2022-02-16T15:15:00","guid":{"rendered":"https:\/\/www.rmservicing.com\/?post_type=articles&p=3836"},"modified":"2022-02-16T09:15:00","modified_gmt":"2022-02-16T15:15:00","slug":"why-in-store-execution-matters-endcap-and-display-management","status":"publish","type":"articles","link":"https:\/\/www.rmservicing.com\/articles\/why-in-store-execution-matters-endcap-and-display-management\/","title":{"rendered":"Why In-Store Execution Matters: Endcap and Display Management"},"content":{"rendered":"\n

Despite an increasingly online world, in-store retail\npurchases are still thriving, making in-store execution crucial to suppliers\u2019\nsuccess. Merchandising partners, like Retail\nMerchandising Services (RMS)<\/a> can help brands make sure that their in-store\ninventory is stocked, set, and priced correctly to maximize sales. <\/p>\n\n\n\n

Why engage a third-party merchandiser though? <\/p>\n\n\n\n

Shouldn\u2019t 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%.<\/a> And that was pre-pandemic. Imagine, only 40% of your expensive endcap displays get set correctly.<\/p>\n\n\n\n

Keep reading to discover why this challenge persists and how suppliers can overcome it to make sure they meet their sales targets.<\/p>\n\n\n\n

The Problem: When In-Store Execution Falls Short<\/h2>\n\n\n\n

Retail brands face a massive challenge once their inventory\nhits their retail partner\u2019s backroom. There is simply not enough labor to\nensure that every item gets set correctly. We are not here to point fingers.\nRetail employees are working every day to make sure inventory gets the love\nthat it deserves once it\u2019s in the store. However, there are too many items and\ntoo few hands to properly account for everything. <\/p>\n\n\n\n

These problems have existed for years but with the pandemic,\nthe labor shortage has become increasingly pressing, with retailers and the\nbrands that sell at them experiencing dipping execution rates.<\/p>\n\n\n\n

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<\/a> having quit recently. And retailers aren\u2019t having much luck backfilling the shortage. So is it any surprise that execution rates are less than what they were?<\/p>\n\n\n\n

The challenge is bad enough on store shelves but what about when you\u2019ve invested heavily into end caps and other displays? Having a messy, understocked display not only reduces the number of sales you\u2019ll make; it\u2019s also doing damage to your brand.<\/p>\n\n\n\n

Let\u2019s explore some of the other impacts of poor in-store\nexecution.<\/p>\n\n\n\n

Take a look at the chart below.<\/p>\n\n\n\n

An empty shelf is by far the leading cause of lost sales.<\/p>\n\n\n\n

Main Causes of Lost Sales in the Retail Industry <\/strong>(in\nbillion U.S. dollars)<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Source<\/a><\/p>\n\n\n\n

Not only does a brand miss out on a sale when a customer can\u2019t find what they\u2019re looking for, but they also risk losing that customer for life. <\/p>\n\n\n\n

Why wouldn\u2019t that customer just switch once and then come\nback to their original choice?<\/p>\n\n\n\n

Well, now they\u2019ve 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\u2019ve been given an opportunity to try the competition. What if they find they like it more? Whether it\u2019s a better price, quality, or value, you never want to risk losing a life-long customer because of a simple out-of-stock.<\/p>\n\n\n\n

Differentiation: Why Standing Out Matters More than Ever<\/h2>\n\n\n\n

But we can\u2019t just talk about what happens when things go\nwrong. What about when things go according to the status quo and it\u2019s still not\nenough?<\/p>\n\n\n\n

That\u2019s where differentiation comes in. <\/p>\n\n\n\n

Brands have to compete for customers\u2019 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, \u201cpick me! I\u2019m the best!\u201d<\/p>\n\n\n\n

40\n\u2013 80% of all purchases<\/a> are impulse buys. Even at the low end of that range,\nthat\u2019s an enormous amount of sales that depend on product and displays being\nvisually appealing enough to attract those last-minute decisions.<\/p>\n\n\n\n

The Solution: Merchandising Partners<\/h2>\n\n\n\n

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 \u2013 50%<\/strong>. <\/p>\n\n\n\n

What can a retail merchandising partner help brands with?<\/strong><\/p>\n\n\n\n

Retail merchandisers provide suppliers with many services<\/a>, including:<\/p>\n\n\n\n