By Jithan Bridgmohan, CFO

Efficient and sustainable practices are essential for success in today’s retail environment. Wasted products, expired items, and out-of-stock situations result in lost revenue, negatively impacting the environment. Brands must prioritise better shelf execution to remain competitive and meet sustainability goals.

I’ve witnessed the detrimental effects of poor shelf management, including product spoilage, stock inefficiencies, and lost sales.  By implementing regular shelf audits, data-driven merchandising strategies, and real-time execution monitoring, brands can minimise waste and increase profitability.  Better shelf execution isn’t just good for business, it’s a win for the environment too. Keep reading to see how it drives both profitability and sustainability.

Why Shelf Audits Matter

Product waste can result from a variety of in-store execution issues, including poor stock rotation, products being left on shelves for too long, and promotions failing to be implemented.

The global retail industry wastes an estimated 1.3 billion tons of food every year due to poor inventory management, incorrect shelving practices, and stock mismanagement. But waste isn’t limited to food, it includes expired pharmaceuticals, damaged beauty products, and unsold consumer goods that end up in landfills.

With regular shelf audits, brands can take a proactive approach to merchandising, identifying potential issues before they become costly problems. These audits help ensure that:

• Products are correctly rotated using the first-in-first-out (FIFO) method to prevent expiration.
• Planograms are being followed, ensuring optimal shelf positioning and visibility.
• Promotional displays are fully stocked and properly executed, maximising ROI on marketing spend.
• Retailers and merchandisers have real-time feedback, allowing for immediate corrective actions.

When brands take control of their shelf execution, they reduce stock losses, lower their environmental footprint, and improve overall profitability.

How Better Shelf Execution Improves Sustainability

Beyond the financial impact, better shelf audits contribute directly to sustainability goals. Every unit of wasted stock represents wasted energy, water, and resources used in production, packaging, and transportation.

• Reducing expired products: Ensuring proper stock rotation minimises the number of expired goods that must be discarded.
• Cutting down on overstocking and stockouts:Data-driven audits prevent over-ordering that leads to excess stock while also avoiding stockouts that force emergency shipments, which increases carbon emissions.
• Optimising packaging and logistics:Real-time inventory tracking enables brands to streamline supply chain logistics, reducing unnecessary transportation and packaging waste.

Retailers that prioritise stronger merchandising execution and sustainability-focused shelf audits don’t just reduce waste, they enhance brand reputation and consumer trust.

Consumer demand for sustainability is stronger than ever. According to a 2022 IBM study, 62% of consumers are willing to change their purchasing habits to reduce their environmental impact, while 68% consider sustainability very or extremely important. This shift highlights a growing expectation for brands to adopt more sustainable practices, making responsible merchandising execution not just a business strategy, but a competitive advantage.

Technology’s Role in Smarter Shelf Audits

Technology has transformed how brands monitor shelf execution and reduce waste. Today, advanced tools enable real-time tracking, AI-driven analytics, and automated compliance checks, making shelf audits more efficient and impactful.

1.  AI-powered image recognition for real-time shelf compliance

Merchandisers can now use AI-powered apps to scan shelves, instantly detecting missing, misplaced, or expired products. These tools provide immediate corrective feedback, ensuring execution issues are addressed on the spot rather than weeks later during manual audits.

2. IoT-enabled smart shelving for stock monitoring

Smart shelves with RFID and weight sensors can track inventory levels in real time, automatically flagging low-stock items before they run out. This technology prevents lost sales and ensures better stock management, reducing waste and improving restocking accuracy.

3. Digital shelf tags for reduced paper waste and dynamic pricing

Instead of using traditional printed price tags, retailers are increasingly switching to digital shelf labels, which allow for instant price adjustments, dynamic promotions, and real-time inventory tracking, eliminating the need for frequent reprints and paper waste.

By integrating these data-driven technologies into shelf audits, brands improve operational efficiency, reduce costs, and enhance sustainability efforts, a triple win for business, consumers, and the environment.

How Shelf Audits Impact the Bottom Line

As Chief Financial Officer, I know that sustainability efforts need to be more than just good PR. They need to make sense financially. The reality is that waste reduction directly translates to cost savings, and better execution means higher sales, fewer markdowns, and improved inventory turnover.

• Stock waste reduction leads to lower write-offs and higher profit margins.
• Data-driven shelf execution increases sell-through rates, reducing reliance on deep discounts.
• Sustainability-driven audits enhance brand reputation, attracting eco-conscious shoppers who drive long-term revenue. 

Brands that invest in shelf audit strategies today will see immediate financial benefits while future-proofing their operations in a world that demands smarter, greener business practices.

Where Brands Thrive

In today’s evolving retail environment, shelf audits are about more than just compliance, they are the foundation of profitability and sustainability. Better execution reduces waste, improves efficiency, and creates a more sustainable, consumer-friendly shopping experience.

At Meridian, we power forward with heart, helping brands take control of their shelf execution, drive better financial results, and reduce waste through smarter merchandising practices.

For companies looking to build a stronger, more profitable, and sustainable future, the time to act is now. Reach out to find out how better shelf execution can transform your business.