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.

Costs and missed opportunities

When done, here is content other readers find helpful:

The following statistics are provided 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?

Stop leaving money on the table with poorly executed merchandising


Refer to the Merchandising category for checklists, how-tos and best practices for merchandising.

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