Merchandising Mistakes That Cost Brands Millions (and How to Avoid Them)

Jithan Bridgmohan

In retail, execution is everything. But a great marketing campaign can only go so far if the in-store strategy doesn’t follow through. Yet, many brands still underestimate how much poor merchandising choices can end up costing.

The truth is that small mistakes at shelf level quickly turn into big financial and reputational losses, especially at scale. Luckily, most of these mistakes are avoidable if you know what to do.

In this article, I unpack the most common merchandising mistakes we see in FMCG and provide insights on how to avoid them through smarter, data-driven decision-making.

The Cost of Getting It Wrong

Merchandising mistakes can have a significant impact on your bottom line. When execution fails, even the strongest marketing strategies can unravel at shelf level.

Think of empty displays during a peak promo, products out of stock when demand spikes, or campaigns that just don’t land. This results in missed sales, lost consumer trust, poor ROI on promotional spend, and brand momentum that stalls.

In an industry that moves as fast as FMCG, these aren’t small issues either, and they can add up quickly. Over time, this can cost your brand millions in unrealised revenue and reputational damage.

Common Merchandising Mistakes (and How To Avoid Them)

1. Underestimating the cost of poor execution

When displays go up late, stock isn’t replenished, or planograms aren’t followed, it creates a ripple effect that spreads fast. Execution gaps might seem small, but across multiple stores and regions, they can add up to thousands of lost sales.

Avoid this by:

Ensuring real-time visibility into field performance.
Empowering store teams with clear guidelines and ongoing support.
Auditing frequently to spot and fix issues early on.

2. Ignoring shelf data

Sales numbers only tell one part of the story. Without understanding what’s happening at shelf level, brands miss key insights that affect consumer behaviour and sales. Here’s how to avoid this:

Use shelf analytics and compliance tracking tools.
Measure AVA (Available, Visible, Accessible) metrics regularly.
Combining qualitative in-store feedback with sales data.

3. One-size-fits-all merchandising

Rolling out the same strategy in every store ignores local market dynamics, shopper preferences, and in-store-specific formats. What works in a suburban retail store might not resonate in a rural franchise.

Avoid this mistake by:

Tailoring executions by region, channel, or store format.
Using past campaign data and store segmentation.
Tapping into insights from your merchandisers on the ground.

4. Overlooking last-mile logistics

A great strategy means little if the product doesn’t arrive on time, deliveries or in-store displays are delayed, or peak stock is missing. This last mile, from your warehouse to the shelf, is where many campaigns can fail.

To avoid this, you can:

Align your merchandising plan with your supply chain timelines.
Buffer stock ahead of peak periods.
Build flexible last-mile logistics support.

5. Treating merchandising as an afterthought

Merchandising is often treated as the final checkbox, rather than a core part of a business’s growth strategy. When execution isn’t a priority, it shows up in-store and in the numbers.

You can avoid treating merchandising as an afterthought by:

Integrating merchandising into campaign planning early.
Aligning sales, operations, and marketing around shared outcomes.
Partnering with a team that understands both brand and execution.

Turn Small Moments Into Big Impacts with Meridian

Avoiding these common merchandising pitfalls isn’t about perfection. It’s about strategy, consistency, and visibility. With the right systems in place, brands can protect revenue, improve performance, and show up with purpose.

At Meridian, we help brands turn these missteps into growth opportunities. Let’s make your merchandising smarter, sharper, and built to scale.