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Why You Need to Monitor Merchandising Compliance

In-store merchandising compliance. It sounds so simple, yet anyone who oversees brick-and-mortar retail knows that getting merchandising from idea to execution is anything but. 

Naturally, the outcome always ends up being significant with something that is easier said than done. In this case, the outcome of merchandising compliance will directly affect many areas of your business, helping to drive sales and position you as a leader in the industry.  

As a result, here is why you must monitor your in-store presence for merchandising compliance: 

A Lack of Motivated Shoppers 

The first reason why you need to track compliance has to do with your shoppers. Specifically, how you can lose shopper motivation due to non-compliance.  

For example, your in-store displays may not be set up properly. They could be broken, with television displays, lights or other visual elements out of order. Perhaps you were supposed to have an end cap, but that display wasn’t set up on schedule.  

No matter the scenario, non-compliant merchandising can drive shoppers away from your store or brand and to a competitor. It won’t motivate them to buy and it will do little to inspire brand loyalty.

Stocked grocery shelves

An Increase in Out-of-Stocks 

The next reason why you must be monitoring merchandising compliance is out-of-stocks, or OOSs. A compliant shelf is one that is well-stocked with the right number of products on it. Obviously, your customers can’t buy if you don’t have anything available.  

Out of stocks can be caused by many factors, including mismanaged supply chains, poor forecasting, or retailer ordering errors. Keeping an eye on merchandising compliance can prevent those problems from cropping up. You can spot warning signs early and ensure that your shelves are stocked just as you need them to be. 

A Rash of Untrained Associates 

Merchandising compliance can also directly affect in-store associates. On-the-ground staff are crucial to the success—or failure—of a product or store. Customers turn to them for help finding the right item and their behavior and knowledge reflects on the entire company. 

Therefore, it’s a must that you track compliance to prevent a rash of untrained associates. Non-compliant associates are those who don’t know enough about your products or services. They may answer customer questions incorrectly or guide them toward competitors.  

Trained associates can also identify broken displays and OOSs and take corrective action. The bottom line is that compliance is incredibly important for store associates. 

Tablet cash register

A Problem with Prices 

The price is right, except when it’s wrong. And non-compliant merchandising can directly lead to incorrect prices.  

This is another reason why you must watch your in-store compliance. Improper prices can take a couple of forms. First, they can be a mismanaged promotion. The wrong discount could be offered, either degrading margins or decreasing sales. Second is the wrong price is listed. This can have a similar effect.  

Both can be prevented with improved merchandising compliance.  

Upgrade Your Merchandising Compliance 

All in all, you can’t take action until you know where to act. This is at the heart of why you must monitor in-store compliance. You will be able to know exactly what is going on within stores and focus your efforts on those locations. 

Wiser offers in-store merchandising solutions so you can optimize your on-the-ground presence. We will help you monitor displays, end caps, store associates, and much more so you can act quickly and with confidence. 

Connect with us today to learn more! 

Matt Ellsworth

Matt is the Content Marketing Manager at Wiser, the leading provider of actionable data for better decisions. He holds a BA from Salem State University.

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