Merchandising
Quick answer
Merchandising is how products are placed and presented in store so they are easy to find and buy: shelf position, facings, materials and stock.
Key takeaways
- Presence of listed products and absence of gaps
- Number of facings and shelf position (eye level, next to competing or complementary products)
- Correct displayed prices and mounted promotional materials
- Expiry dates and stock rotation on the shelf
What merchandising is
Merchandising is the work at the point of sale that turns a commercial agreement into sales: products must be on the shelf, in the right place, clean, with a visible price and no gaps. It is done by the retailer's team, by supplier agents or by specialised merchandising firms.
What is checked on a visit
- Presence of listed products and absence of gaps
- Number of facings and shelf position (eye level, next to competing or complementary products)
- Correct displayed prices and mounted promotional materials
- Expiry dates and stock rotation on the shelf
How it is measured
Share of shelf = own facings / total category facings × 100. On-shelf availability = stores with the item present / stores visited × 100. Planogram compliance = correct positions / positions in the planogram × 100.
Common mistakes
1. Visits without a checklist. Each agent checks something different and results cannot be compared.
2. Full shelf, but no sales. Stock on the shelf is not the same as stock sold: without sell-out, merchandising cannot be evaluated.
3. Out-of-stock treated as a shelf problem. Sometimes the gap comes from incomplete deliveries, not in-store execution.
How it shows up in a CRM
Merchandising visits are planned on a route and recorded as agent activity. CRMconnect's Sales Agent Management aggregates calls, visits, quotes and opportunities into reports per agent, team or area.
Real-world example
An agent visits 10 stores and finds the item present in 7. On-shelf availability is 7 / 10 × 100 = 70%. In one of the 3 stores the gap comes from an incomplete delivery, not the shelf, and in the other two it had not been added to the range.
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Frequently asked
What does merchandising mean?+
Merchandising means placing and presenting products at the point of sale: shelf position, number of facings, materials and cleanliness, so products are found and bought.
How is merchandising different from trade marketing?+
Trade marketing is the strategy towards the channel, with promotions and commercial terms. Merchandising is in-store execution: what actually reaches the shelf and how it looks.
What is share of shelf?+
It is the proportion of your products' facings out of all facings of the category on the shelf. It is usually compared with your share of category sales.
Who does merchandising?+
The supplier's sales agents during visits, dedicated merchandiser teams or external firms. The choice depends on the number of stores and the desired visit frequency.
Where CRMconnect fits
Where CRMconnect helps
Sales Agent Management records each agent's calls, visits, quotes and opportunities and aggregates them into reports per agent, team or area.
Related terms
Planogram
A planogram is the diagram showing where each product goes on the shelf, at which level and in how many facings, so stores present products consistently.
B2B commerceTrade marketing
Trade marketing brings together a manufacturer's or distributor's actions towards retailers so products are present, visible and sold at the point of sale.
B2B commerceSell-through rate
The share of received stock sold in a period: units sold / units received × 100.
OperationsStockout
A situation where a requested product is not available in stock, causing lost sales and dissatisfied customers.