By Rob Hind

In an increasingly competitive market, many FMCG brands may find themselves wondering why their current operational focus is no longer effective. This is where the role of merchandising partners is becoming more important.

With consumer expectations higher than ever, brands need their merchandising partners to go beyond filling shelves and start prioritising sales.

In this article, I’ll take a look at the role of merchandising partners in FMCG sales and how you can ensure they prioritise strategies that drive consumer engagement to keep your brand top of mind.

The Shift from Operations to Sales Outcomes

Traditionally, merchandising in FMCG has focused on operational tasks like stock management and product placement. While these tasks are essential for visibility, they are no longer enough to guarantee sales.

Consumer expectations are higher and the market is more competitive than ever, which means brands need to fill shelves and ensure they drive purchases. This is why merchandising strategies must shift to prioritise sales outcomes.

The shift means focusing on increasing sales and profitability, but it also requires a deeper understanding of your customer. When you align your merchandising efforts with your customers’ needs, you can create a brand with an unforgettable retail presence.

How Merchandising Partners Impact Sales

Merchandising partners play an important role in driving sales by improving product visibility and shelf displays. By strategically placing products in high-traffic areas, adjusting facings, and using eye-catching signage, they ensure products attract attention.

In-store merchandising directly impacts sales by creating a good shopping experience. When products are well-positioned and easy to find, shoppers are more likely to make a purchase.

This is why effective merchandising increases the likelihood of impulse buys, while reinforcing brand recognition, boosting sales, and creating customer loyalty.

Strengthening Your Partnerships

Clear communication

Regular communication helps align expectations and strategies. This ensures that both the FMCG brand and merchandising partner are working towards the same goal.

Establish KPIs

Setting clear and measurable KPIs helps track progress and ensures focus on sales outcomes. These metrics keep both parties accountable and aligned.

Have regular performance reviews

Having regular performance reviews allows you to review the results and identify areas where improvements can be made. This ongoing feedback loop helps refine strategies and drive better sales over time.

Key Metrics for Sales Success

Conversion rates

Conversion rates measure the percentage of customers who make a purchase after interacting with a product. Tracking this metric helps determine the effectiveness of product placement and in-store promotions.

Sell-through rates

Sell-through rates track the percentage of inventory sold over a specified period. This metric indicates how quickly products are moving off the shelves and can highlight the success of in-store merchandising strategies.

ROI

ROI measures the profitability of merchandising investments against their cost. High ROI shows that merchandising strategies are driving sales effectively, increasing profitability.

Why FMCG Must Have Access To Sales Results

With consumers having more choices than ever, competition in the FMCG industry is intense. To stay ahead, brands must focus on optimising every aspect of their merchandising strategies to ensure they stand out.

FMCG leaders must also take a proactive approach by insisting on having access to sales results from their merchandising partners.

By holding partners accountable for sales performance, brands can ensure that their retail strategies are both functional and effective. This is also why it’s important to partner with a merchandising team that aligns with your sales strategy and prioritises it to help drive growth.

Partner with Meridian and Power Forward with Heart

When success is about more than operational efficiency, you need a partner by your side that prioritises the outcomes that matter. When you work with Meridian, you step into a partnership that powers forward with heart.

Get in touch with us to see how we can help your brand thrive.