Neville Dunn, Managing Director
In the fast-moving consumer goods (FMCG) industry, simply having a good product isn’t always enough and merchandisers are always looking for ways to stay ahead. One way to gain this competitive edge is by building trust with your retailers.
When done right, I’ve seen how powerful strong retail relationships can be. In this article, I discuss why this is key to achieving success in the FMCG industry and how you can start strengthening your retailer relationships. Let’s dive in!
Why Do Strong Retail Relationships Matter?
Strong retailer relationships can be a game-changer in the FMCG industry. They can have a direct impact on a number of key factors, including shelf placement, brand visibility, and promotional opportunities.
That’s why brands that invest in building reliable, collaborative relationships with retailers often have stronger negotiating power, giving them a significant advantage over their competitors.
4 Key Benefits of Strong Retailer Relationships
So, strong retailer relationships are important because they can give your brand a competitive advantage. But what exactly does that look like?
Improved shelf placement and visibility
Retailers decide where and how products are displayed in-store.
Brands with trusted retailer partnerships are more likely to secure eye-level shelving, end-cap displays, and feature spots near check-out areas. Research shows that products displayed in these areas are associated with the highest percentage of purchases.
More effective promotions
Retailers may be more willing to offer in-store activations and exclusive promotional space to brands they trust. Strong relationships make it easier to ask for your brand to be included in these campaigns, helping you to attract more customers and increase sales.
Better sales forecasting and inventory management
To align your inventory with real-time demand, strong retailer relationships are key. This can help reduce stockouts, overstocking, and product waste. Not only that, but better inventory management can also improve sales forecasting to help you adjust production based on demand for more efficient distribution.
Access to valuable customer insights
Retailers collect large amounts of customer data, from purchasing behaviour to regional shopping trends. Brands with stronger retailer relationships can gain access to these insights, helping them refine product offerings, pricing strategies, and marketing campaigns.
How Can You Build Stronger Relationships with Retailers?
1. Prioritise communication and transparency
Clear, consistent communication is essential for any retailer relationship. Being transparent about product availability, upcoming promotions, marketing trends, and even challenges you’re facing helps foster trust.
2. Deliver on commitments
Reliability is key. Retailers value brands that meet deadlines, fulfil orders accurately and consistently maintain product quality. Missing these commitments can damage trust and lead to lost opportunities, so it’s important to ensure smooth operations at all times.
3. Provide retailers with data and support
Brands that can provide customer insights, sales trends, and demand forecasts may stand out among the competition. Helping retailers understand which products perform well, when to restock, and how to improve merchandising can drive mutual success.
Challenges You May Face (and How To Overcome Them)
Building strong retailer relationships is essential, but it’s not without challenges. Here are some of the most common ones you may face.
Retailers may be resistant to new products
Retailers can be hesitant to take on new products, especially if shelf space has already been allocated to established brands. To overcome this, provide market data and demand insights to show potential sales and proof of profitability.
Competing for shelf space
Retail shelves are highly competitive and brands must prove that they deserve the premium spots. Being reliable and making data-driven decisions that drive sales can help you negotiate for better shelf placement.
Maintaining consistency with multiple retailers
Ensuring consistent product placement, pricing, and marketing campaigns can be difficult to maintain across different store layouts and policies. That’s why it’s important to create clear merchandising guidelines and have regular shelf audits to ensure your brand is compliant—this also helps to build trust.
How Meridian Is Keeping Our Relationships Strong
At Meridian, we know that strong retailer relationships are the foundation of creating brands that thrive. We don’t just see retailers as distribution channels, they are our strategic partners. By focusing on trust, transparency, and value-driven collaboration, we ensure that our clients’ brands are always well-positioned in stores.
Want to know how we can turn your brand into a contending challenger? Reach out to us today.