The Cost of Merchandising Non-Compliance

It is often said that success in retail boils down to execution.  How well do retailers execute today and what is the cost of merchandising execution non-compliance?

We had the opportunity to discuss the current state of in-store execution with James Tenser, Director at the In-Store Implementation Network.  Below are some of the key findings from a NARMS – ISI Webinar.

In-store implementation facts (courtesy of the In-Store Implementation Network):

  • Only 4% of respondents estimate that in-store promotions, resets and other merchandising activities are implemented completely and accurately.
  • 50% of authorized retail promotional displays are not erected or erected late.
  • The total cost of sub-optimal merchandising to the U.S industry is approximately 1% of gross product sales.

While the implications for multi-unit retailers run deep, the solution is surprisingly straight-forward and achievable.  In Mr. Tenser’s words:

“The retailer that formulates a compliance plan, enables it with appropriate solutions, and  measures its outcome relentlessly will always achieve better performance on in-store programs. ” James Tenser, Principal VSN Strategies

For more information on the costs and ROI of retail audits, please refer to How Much Do Retail Audits Really Cost?



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