As we approach key store resets and promotions for back-to-college and upcoming seasonal sets, it is important to keep the basics in mind – getting your set right from the beginning prepares you for an entire season of successful sales.
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.