The Pressing Challenges Facing Merchandising Teams Today

The merchandising industry is at a crossroads, grappling with a range of challenges that disrupt operations and hinder performance. These issues, exacerbated by recent global disruptions, are reshaping the landscape of retail merchandising.

1. High Turnover Rates

Employee retention continues to be a significant challenge for merchandising teams. The annual turnover rate in many industries has risen sharply, leaving teams short-staffed and struggling to maintain continuity.

2. Difficulty in Finding Experienced Talent

The pool of skilled merchandising professionals has diminished, making it increasingly challenging to hire individuals with the necessary experience. Many teams are left with the burden of training inexperienced hires, which requires time and resources they may not have.

3. Onboarding Challenges with Outdated Systems

Legacy retail systems and a lack of robust technology complicate the onboarding process. New hires face steep learning curves, and outdated tools hamper their ability to perform efficiently.

4. Communication Gaps

Disconnected field teams often work in isolation, leading to confusion and a lack of coordination. This isolation makes it difficult for managers to stay informed about on-the-ground conditions, affecting overall performance.

5. Resource Constraints

Merchandising teams are often stretched thin, struggling to cover vast territories with limited staff. This strain leads to inefficiencies in route management, shelf stocking, and compliance checks.

6. Shelf and Inventory Management Issues

With many stores still not operating at full staffing levels, shelf conditions are frequently overlooked. Out-of-stock products, mismanaged displays, and compliance failures disrupt the shopping experience and impact sales.

7. High Expectations from Retail Partners

Retailers increasingly demand precise execution of merchandising plans, but under-resourced teams struggle to meet these expectations. The inability to deliver on agreed display setups or restocking schedules damages relationships and brand credibility.

8. Increased Competition for Shelf Space

With more products flooding the market, competition for shelf space is fiercer than ever. This leads to frequent conflicts between brands and retailers, resulting in suboptimal product placement.

9. Environmental Pressures

Sustainability concerns add another layer of complexity. Teams must optimize their operations to reduce environmental impact, but this often requires investments that overstretched budgets cannot accommodate.

10. Post-Pandemic Recovery Struggles

The lingering effects of the pandemic continue to disrupt merchandising operations. Staffing shortages, supply chain delays, and shifting consumer behaviors compound the difficulties faced by teams striving to return to pre-pandemic levels of efficiency.

Conclusion

The modern merchandising landscape is fraught with challenges that demand attention and strategic solutions. As the industry evolves, these issues serve as critical roadblocks to achieving operational excellence and maintaining a competitive edge.