Merchandising Audit: Definition, Key Components, And Key Areas to Evaluate

Merchandising audit is a systematic process used to evaluate the presentation, placement, pricing, and promotion of products in a retail environment. Merchandising audit also ensures that in-store execution aligns with brand standards and marketing strategies, ultimately driving customer engagement and sales. 

According to a 2024 report by NielsenIQ, 60% of purchase decisions are made at the shelf, underscoring the importance of consistent and effective merchandising. Moreover, retailers who conduct regular merchandising audits report up to a 25% increase in compliance with promotional strategies and a 15–20% uplift in category sales, as highlighted by McKinsey & Company. Given its impact on profitability and shopper behavior, understanding the definition, key components, and critical areas of evaluation in a merchandising audit is vital for retail success.

What is a Merchandising Audit?

Merchandising audit is a structured evaluation of how products are displayed, priced, promoted, and stocked in retail environments. Merchandising audit also identifies discrepancies between brand standards and in-store execution, ensuring that retail strategies are effectively implemented at the ground level. These audits are typically conducted by field representatives, store managers, or third-party merchandising teams to assess a range of factors, including shelf layout, promotional compliance, product availability, signage accuracy, and overall visual appeal.

The primary purpose of a merchandising audit is to maintain consistency across retail locations, which directly influences consumer behavior and purchasing decisions. According to Retail Dive, 70% of shoppers say that in-store product presentation plays a key role in their buying choices. Additionally, research from the Path to Purchase Institute reveals that poor shelf compliance, such as out-of-stock items or misplaced products, can result in up to a 20% drop in sales.

With today’s highly competitive retail landscape, where consumers are flooded with choices, an effective merchandising audit helps ensure that brands stand out on the shelf. It enables retailers and manufacturers to collect actionable insights, identify underperforming areas, and take corrective measures quickly. Moreover, data from NielsenIQ suggests that brands that consistently maintain merchandising standards can experience a 15–25% increase in category sales. Ultimately, merchandising audits are not just a checklist; they are a strategic tool for driving retail success and strengthening customer loyalty.

Why Merchandising Audits Matter in Retail

Merchandising audits matter in retail as they help optimize retail performance by ensuring that every aspect of in-store product presentation aligns with brand and operational standards. From improving product visibility to reducing inventory inefficiencies, these audits provide retailers with actionable insights that drive sales and enhance the customer experience.

1. Improving Product Visibility and Availability: When products are properly placed and clearly visible, customers are more likely to make purchasing decisions. According to NielsenIQ, up to 60% of buying decisions are made at the shelf, highlighting the importance of effective visual merchandising. Merchandising audits help ensure that high-performing SKUs are prominently displayed and easy to locate, increasing the likelihood of conversion.
2. Enhancing Store Layout and Shopper Experience: A well-organized store layout improves navigation and reduces shopper frustration. A study by the Journal of Retailing found that an intuitive and attractive store layout can increase shopper dwell time by up to 40%, significantly boosting the chance of additional purchases. Audits help identify layout inefficiencies and ensure stores follow design and merchandising guidelines that optimize traffic flow and product discovery.
3. Maintaining Inventory Accuracy: Inaccurate inventory levels can lead to stockouts or overstocking, both of which negatively impact profitability. According to the IHL Group, retailers lose nearly $1.75 trillion annually worldwide due to inventory distortion. Merchandising audits enable more precise stock monitoring by verifying actual shelf stock against reported inventory, helping to correct discrepancies in real-time.
4. Boosting Sales Through Better Product Placement: Products positioned at eye level or near checkout areas often sell more due to increased exposure. A report by Deloitte states that optimized product placement can result in up to a 20% increase in sales for promoted items. Audits help ensure that planograms (shelf layouts) are followed correctly so brands get the visibility they’ve paid for.
5. Preventing Stockouts and Overstocking Issues: Stockouts frustrate customers and can lead to lost sales, while overstocking ties up capital and leads to markdowns. A Harvard Business Review study found that stockouts cause an average loss of 4% in annual sales, and 21% of shoppers will abandon a purchase entirely if their desired product is unavailable. Merchandising audits help retailers proactively identify replenishment needs and ensure accurate stock rotation, reducing both extremes.

Merchandising audits matter because they directly impact how effectively a store can serve its customers and compete in a crowded retail environment. By improving visibility, accuracy, layout, and compliance, these audits become a powerful tool for boosting profitability and operational excellence.

What Are The Key Components of a Merchandising Audit?

The key components of a merchandising audit are essential for ensuring consistent retail execution and maximizing sales potential. These components provide a structured framework to evaluate everything from product placement to promotional compliance and stock levels.

Store Exterior & Entrance 

The store exterior and entrance are vital components of a merchandising audit, as they shape the customer’s first impression and influence foot traffic. Audits focus on key areas such as signage, which must be visible, legible, and updated with accurate information like store hours and current promotions. A FedEx Office survey found that 76% of consumers have entered a store they’ve never visited before simply because of adequate signage, while over 60% say poor signage would deter them. Similarly, window displays are evaluated for alignment with current marketing campaigns, seasonal themes, and visual impact. Studies show that well-executed window displays can increase product sales by 20–30%, making them a powerful promotional tool.

Additionally, audits inspect the store entrance for cleanliness, accessibility, and the absence of obstructions such as cluttered signage or misplaced displays. A Retail Customer Experience report highlights that more than 50% of shoppers associate a clean, organized entrance with product quality, underlining the importance of a welcoming entry point. The overall exterior maintenance is also reviewed, including parking areas, landscaping, lighting, and the storefront’s physical condition. According to Business Insider, 68% of consumers believe the condition of a store’s exterior reflects the quality of the products inside. By ensuring these external elements meet brand and operational standards, retailers can attract more customers and create a positive, lasting first impression.

Store Layout & Flow

The store layout and flow are critical to guiding customer movement and maximizing sales opportunities, making them an essential focus of any merchandising audit. A well-designed floor layout ensures smooth traffic flow, appropriate aisle width, and ease of navigation—all of which contribute to a more enjoyable shopping experience. According to a study published in the Journal of Retailing, an effective layout can increase customer dwell time by up to 40%, directly boosting the likelihood of additional purchases. Merchandising audits evaluate whether store design supports natural customer circulation and reduces congestion, especially during peak hours.

Product placement is another key element. Audits assess whether items are positioned in their designated sections, are easily accessible, and follow planogram guidelines. Proper product placement can increase visibility and encourage impulse buys; in fact, data from NielsenIQ shows that optimized shelf placement can lead to a 20% increase in category sales. In addition, signage and communication are reviewed to ensure they are clear, consistent with brand messaging, and effectively guide customers throughout the store. Poor signage can confuse shoppers and reduce conversion rates, while clear signage improves overall navigation and helps highlight key promotions. Together, these elements of store layout and flow not only improve the customer experience but also play a direct role in driving sales and operational efficiency.

Product Displays

Product displays are a core focus of merchandising audits, as they directly impact product visibility, shopper engagement, and sales performance. Audits begin by evaluating shelf condition and stock levels, ensuring that shelves are clean, fully stocked, organized, and free of clutter. A disorganized or empty shelf can lead to missed sales opportunities; in fact, according to the Harvard Business Review, stockouts can result in a 4% loss of annual sales, and over 20% of consumers will abandon their purchase if an item is unavailable. Fronting, positioning products to face outward and appear full, is also critical, as it enhances shelf appeal and encourages customer trust in product availability.

Another key element is planogram compliance, where auditors check that products are displayed according to pre-set visual merchandising plans and shelf layouts. When followed correctly, planograms can help improve product findability and optimize high-margin item placement, contributing to a 20% increase in category performance (NielsenIQ). Promotional displays are also inspected to ensure they are well-stocked, located in high-traffic areas, and clearly priced. According to Point of Purchase Advertising International (POPAI), in-store promotional displays influence up to 76% of purchase decisions, underlining their importance. Finally, the condition of products is assessed; damaged, expired, or unsellable items must be removed promptly to maintain quality standards and shopper confidence. By ensuring that every element of the product display meets brand and operational standards, merchandising audits help retailers present a polished, efficient, and sales-driven in-store environment.

Pricing & Promotions

Pricing & Promotions directly impacts customer trust, sales performance, and brand reputation. Accurate pricing ensures that the shelf prices align with promotional materials such as flyers, digital ads, and in-store signage. According to a study by Retail Dive, 67% of consumers say inconsistent pricing reduces their trust in a brand. An audit checks that current prices reflect any ongoing promotions and that outdated signage is removed promptly to avoid confusion or legal compliance issues.

Promotional consistency and proper material placement are equally important. A Nielsen report shows that 60% of buying decisions are made at the shelf, highlighting the importance of correctly displayed promotional materials like shelf talkers or endcap signage. The merchandising audit ensures these materials are not only present but aligned with corporate campaigns and seasonal marketing strategies. Inconsistencies can lead to lost sales, customer dissatisfaction, and diminished campaign ROI. Overall, this audit area validates that the pricing and promotional elements work in harmony to drive conversion and maintain brand credibility.

Visual Merchandising

Visual Merchandising influences customer perception, engagement, and in-store experience. It ensures brand compliance by verifying that all displays, signage, and product arrangements align with brand standards. According to the Journal of Retailing and Consumer Services, consistent visual branding can increase customer recognition and trust by up to 80%. Auditors assess whether colors, themes, and layouts reflect the intended brand identity, supporting both marketing goals and customer loyalty.

Key aspects such as lighting, mannequin presentation, and cleanliness are also critical for an effective shopping environment. Research by Shop! Association reveals that well-lit displays can boost product attention by 103%, while properly styled mannequins increase apparel sales by up to 20%. Visual merchandising audits check that lighting is functional and enhances product visibility, mannequins are styled in line with brand directives, and the space is clean and clutter-free. These elements together not only enhance visual appeal but also positively impact dwell time, conversion rates, and overall customer satisfaction.

Customer Experience

Customer Experience is a fundamental component of a merchandising audit, as it directly affects customer satisfaction, retention, and sales. Evaluating customer service involves assessing staff attentiveness, product knowledge, and responsiveness. According to PwC, 73% of consumers say customer experience is a key factor in their purchasing decisions, and one in three customers will leave a brand they love after just one bad experience. A merchandising audit ensures employees uphold service standards, creating a welcoming and helpful in-store environment.

Additional focus areas include the fitting rooms and checkout area, both of which contribute significantly to the overall experience. Clean, well-maintained fitting rooms can increase conversion rates for apparel by up to 67%, as per retail studies. Likewise, a streamlined, clean, and organized checkout area reduces wait times and enhances customer satisfaction, critical given that 86% of shoppers have left a store due to long lines, according to a Harris Poll. By auditing these touchpoints, retailers ensure operational efficiency and a consistent, high-quality customer journey that supports loyalty and repeat business.

Inventory Management

Inventory Management is a vital component of a merchandising audit that ensures product availability, accuracy, and security within the retail environment. Maintaining optimal stock levels is critical, as studies by IHL Group reveal that out-of-stock situations can cost retailers up to $1 trillion globally each year, with nearly 70% of shoppers switching brands or stores when products are unavailable. Auditors verify that shelves are well-stocked to meet customer demand, preventing lost sales and negative shopping experiences.

In addition to stock availability, inventory accuracy is essential to reconcile physical inventory with recorded data, reducing discrepancies that can disrupt replenishment and sales forecasting. According to the National Retail Federation, inventory inaccuracies can lead to a 10-15% loss in sales annually. Audits also focus on loss prevention by assessing security protocols, surveillance, and potential vulnerabilities that could lead to theft or shrinkage. Retail shrink averages around 1.33% of sales in the U.S., translating to significant financial loss. Together, these audit elements ensure efficient inventory control, minimize losses, and support overall retail profitability.

Digital Signage & Technology

Digital Signage & Technology is an increasingly important component of a merchandising audit, especially as retailers adopt tech-driven strategies to enhance customer engagement. Digital signage must be operational, current, and aligned with marketing goals. According to Intel, digital signage captures 400% more views than static displays and can increase purchase amounts by up to 30%. Audits ensure that screens display accurate pricing, promotions, and product information, critical for maintaining a seamless and dynamic shopping experience.

Beyond signage, auditors assess the functionality of technology used for merchandising and sales, such as handheld inventory scanners, mobile POS systems, or interactive kiosks. Malfunctioning tech can lead to poor customer service and operational inefficiencies. A Deloitte study found that 80% of consumers are more likely to shop in stores that offer tech-enhanced experiences. By ensuring that all tech tools are functioning properly, merchandising audits help retailers deliver a modern, efficient, and satisfying customer journey, while minimizing downtime and revenue loss.

By focusing on these core components, retailers and brands can identify gaps, improve store performance, and deliver a more consistent and engaging customer experience. A well-executed merchandising audit turns insights into action, driving both operational efficiency and sales growth.

What Are The Key Areas to Evaluate In Merchandising Audit Checklist?

The key areas to evaluate in merchandising audit checklist allow maintaining retail standards, optimizing store performance, and ensuring a consistent customer experience. It helps retailers identify gaps, uphold brand integrity, and align in-store execution with company strategies.

Store Layout Evaluation

Store Layout Evaluation is a critical area in a merchandising audit, as it directly affects customer navigation, product visibility, and shopping efficiency. This evaluation involves measuring aisle width, store flow, and identifying traffic hotspots to ensure the layout supports both customer comfort and sales goals. According to a study by the Path to Purchase Institute, 76% of shoppers say a well-organized store layout positively impacts their buying decisions.

Proper aisle width enhances accessibility and encourages more leisurely browsing, especially important as ADA guidelines recommend at least 36 inches of clearance for accessibility. Meanwhile, an efficient store flow, the logical arrangement of departments and merchandise, can boost basket size by up to 20%, as reported by Nielsen. Identifying and optimizing traffic hotspots ensures that high-demand areas are not congested and that promotional or high-margin items are strategically placed. This not only improves customer experience but also increases opportunities for impulse purchases, which account for up to 40% of retail sales.

Product Availability

Product Availability is a vital focus area in a merchandising audit checklist, as it directly impacts sales, customer satisfaction, and brand loyalty. This evaluation includes checking stock levels, verifying correct product placement, and identifying any out-of-stock items. According to IHL Group, retailers lose nearly $1 trillion globally each year due to out-of-stock issues, with 24% of shoppers abandoning their purchases when faced with empty shelves.

Correct product placement is also crucial, studies show that products placed at eye level generate 35% more sales compared to those on lower or higher shelves. Auditors verify that items are positioned according to planograms and merchandising strategies to maximize visibility and conversion. Ensuring high-demand products are consistently available and properly displayed helps retailers reduce missed sales opportunities and improves the overall customer experience.

Shelf Arrangements

Shelf Arrangements are a key area in a merchandising audit checklist, as they directly influence how customers interact with products and make purchasing decisions. This involves verifying product organization, ensuring accurate category placement, and maintaining proper facing, the number of product units visible on the front of the shelf. According to a study by Nielsen, well-executed shelf organization can lead to a 4%–10% increase in sales, as it enhances product visibility and ease of selection.

Proper category placement helps customers navigate the store efficiently and encourages cross-selling by grouping complementary products. Auditors ensure that items are placed according to the store’s planogram and that facings are consistent, with popular products given more space to meet demand. Research from the Journal of Retailing shows that products with more facings can experience up to 50% more sales than those with minimal visibility. By auditing shelf arrangements, retailers can boost product exposure, reduce shopper frustration, and optimize sales performance.

Signage and Pricing

Signage and Pricing are essential components in a merchandising audit checklist, as they directly impact customer trust, buying decisions, and store credibility. This area focuses on verifying the visibility and accuracy of signs, shelf labels, and promotional tags. According to a study by Retail Systems Research, 56% of shoppers say unclear or missing pricing is a top frustration in-store, often leading them to abandon a purchase.

Accurate signage not only helps customers make informed decisions but also supports legal compliance and promotional consistency. Clear and visible pricing can increase purchase intent by up to 18%, especially when aligned with current promotions or sales campaigns. Merchandising audits ensure that all signs are up-to-date, professionally displayed, and correctly matched to the products they represent, ultimately enhancing transparency and boosting sales.

Visual Merchandising

Visual Merchandising plays a critical role in influencing customer perception and purchasing behavior, making it a key area to evaluate in a merchandising audit checklist. This involves ensuring that products are aesthetically displayed in a way that attracts attention, reflects the brand identity, and encourages impulse purchases. According to the Journal of Retailing and Consumer Services, compelling visual displays can increase unplanned purchases by up to 24%.

Effective visual merchandising includes neat product arrangements, attractive color schemes, and thematic displays that align with current seasons or promotions. A study by Shop! Association found that 60% of purchasing decisions are made at the shelf, emphasizing the importance of strong visual appeal. Merchandising audits assess whether displays are engaging, strategically placed, and aligned with brand guidelines to enhance the overall shopping experience and drive sales.

POS Systems

Point-of-Sale (POS) Systems are a critical area to evaluate in a merchandising audit checklist, as they directly impact the checkout experience, pricing accuracy, and overall operational efficiency. Audits should confirm system functionality, ensure price matching, and verify transaction accuracy to avoid customer dissatisfaction and revenue loss. According to a study by Retail Consulting Partners, 52% of retailers identify improving POS capabilities as a top priority due to its direct effect on customer experience and store performance.

Accurate pricing at checkout is essential, as discrepancies between shelf prices and POS can erode trust. Consumer Reports notes that nearly 30% of customers have encountered incorrect pricing at checkout, leading to lost sales and complaints. Ensuring that POS systems are updated with current promotions and pricing helps maintain consistency, prevent transaction errors, and support loyalty program integration. A properly functioning POS system also speeds up checkout times, improving customer satisfaction and supporting higher transaction volumes.

Promotions

Promotions influence customer traffic, purchase behavior, and overall sales performance. This involves evaluating the effectiveness of current promotions and discounts by reviewing execution, signage accuracy, and customer response. According to Nielsen, promotions influence over 60% of in-store purchase decisions, but nearly 40% of promotional spending fails to break even due to poor implementation or visibility.

Auditing promotions ensures that discounts are clearly communicated, strategically placed, and aligned with the intended marketing objectives. It also helps identify whether promotional items are in stock and whether sales data reflects increased engagement. A study by the Promotion Optimization Institute found that well-executed promotions can boost sales by 15–20%, but misaligned or poorly executed campaigns often result in wasted investment and lost opportunities. Regular audits help retailers fine-tune promotional strategies for maximum impact and profitability.

Customer Experience

Customer Experience is a key focus in a merchandising audit checklist, as it encompasses how the store environment influences shopper behavior, satisfaction, and loyalty. This includes assessing elements such as cleanliness, staff interactions, store layout, and overall ambiance. According to PwC, 73% of consumers say a positive customer experience is crucial in influencing their purchase decisions, and 32% will stop buying from a brand they love after just one bad experience.

Evaluating the in-store experience helps identify areas that either enhance or hinder shopper engagement. For example, a clean, well-organized store can increase dwell time by up to 40%, while friendly, knowledgeable staff can boost conversion rates by up to 78%, according to Salesforce research. Through merchandising audits, retailers can pinpoint gaps in service, layout inefficiencies, or environmental issues that may impact customer behavior, ensuring a shopping experience that supports both satisfaction and sales growth.

How to Conduct a Merchandising Audit?

To conduct a merchandising audit, one must follow a series of steps that ensure their stores are operating at peak efficiency and delivering a consistent brand experience. 

Preparation

Gather all necessary tools and information, including store layouts, inventory data, promotional calendars, and brand guidelines. This ensures the audit is comprehensive and focused on relevant benchmarks.

Site Visit

Conduct a thorough walk-through of the store, observing product placement, signage, stock levels, cleanliness, and staff behavior. Document findings accurately using notes, photos, or digital devices to capture any deviations from standards.

Data Collection

Use spreadsheets or auditing software to organize and track observations systematically. This helps quantify compliance and identify specific areas that need attention.

Review & Analysis

Analyze the collected data to uncover patterns, strengths, and weaknesses. Compare actual store conditions against merchandising standards to prioritize key areas for improvement.

Follow-up Actions

Develop a clear action plan addressing audit findings, assigning responsibilities, and setting deadlines. This step ensures issues are resolved promptly and merchandising standards are consistently maintained.

Regular audits not only help maintain standards but also adapt to evolving consumer preferences and market trends. Ultimately, this ongoing evaluation is essential for sustaining growth and creating a compelling shopping experience that keeps customers coming back.

What Are The Common Mistakes to Avoid During a Merchandising Audit?

The common mistakes to avoid during a merchandising audit ensure accurate insights and effective store improvements. Many audits fall short not because of the process itself, but due to oversight in planning, execution, or follow-up.

• Failing to Involve the Right Team Members: Excluding key stakeholders such as store managers, merchandisers, and inventory staff can lead to incomplete audits and missed insights. Involving the right team ensures accurate information, diverse perspectives, and smoother implementation of improvements.
• Rushing Through the Audit Process: Conducting a quick or superficial audit increases the risk of overlooking critical issues. Taking the time to carefully observe, document, and analyze each area leads to more reliable results and actionable insights.
• Ignoring Small Details That Can Have a Big Impact: Overlooking minor issues like slightly incorrect pricing, misplaced signage, or poor lighting can affect customer perception and sales. Attention to detail is essential, as small inconsistencies often compound to create a negative shopping experience.
• Not Reviewing Audit Results Regularly: Failing to consistently analyze and act on audit findings means problems persist and opportunities for improvement are missed. Regular review and follow-up help maintain high merchandising standards and continuous store performance improvements.

By steering clear of these pitfalls, such as rushing or neglecting details, retailers can maximize the value of their audits. Consistent involvement, thoroughness, and regular review pave the way for stronger merchandising performance and better customer experiences.

How To Use Tools and Software for Streamlining a Merchandising Audit?

To use tools and software for streamlining a merchandising audit, retailers must be aware of the options that streamline the merchandising audit process, enhancing efficiency and accuracy. One such platform is Taqtics, a comprehensive retail operations management solution designed to digitize and optimize store audits.

• Preparation: Taqtics allows auditors to access and organize essential resources, such as store layouts, inventory data, and promotional schedules, directly within the platform. This centralization ensures that all necessary information is readily available and up-to-date, facilitating a more organized and efficient audit process.
• Site Visit: During the store walk-through, auditors can utilize Taqtics’ mobile application to capture real-time data, including photos and notes. The app’s geo-fencing and time-stamping features ensure that observations are accurately recorded and linked to specific locations and times, enhancing the reliability of the audit findings.
• Data Collection: Taqtics automates the aggregation and organization of audit data, generating reports in various formats such as Excel, PDF, and PPT. This automation reduces manual data entry errors and saves time, allowing auditors to focus on analysis and decision-making.
• Review & Analysis: The platform provides real-time insights and analytics through its Business Intelligence (BI) dashboard. Auditors and managers can track compliance, identify trends, and compare current audit results with historical data, enabling informed decision-making and targeted improvements.
• Follow-up Actions: Taqtics streamlines the corrective action process by automatically assigning tasks to relevant teams based on audit findings. The system tracks progress, triggers escalations for delayed actions, and ensures accountability, facilitating timely resolution of issues and continuous improvement.

By leveraging tools like Taqtics, retailers can enhance the effectiveness and efficiency of their merchandising audits, leading to improved store performance and customer satisfaction.

What Are The Benefits of Regular Merchandising Audits

The benefits of regular merchandising audits help retailers maintain consistency, optimize sales, and improve operational efficiency. 

• Maintain Consistency: Frequent audits ensure stores consistently follow brand standards, promotional plans, and merchandising guidelines, enhancing the overall customer experience and brand loyalty.
• Optimize Sales: Regular audits lead to better product placement and compliance, which can boost sales by up to 15%, according to Retail Dive.
• Improve Operational Efficiency: Audits help identify and fix issues like stockouts, pricing errors, and display problems early, preventing larger operational disruptions.
• Reduce Lost Revenue: According to IHL Group, addressing out-of-stock situations through audits can help retailers recover millions in lost sales, as global lost revenue due to stockouts is nearly $1 trillion annually.
• Enhance Inventory Accuracy and Loss Prevention: Regular checks improve inventory management and shrinkage control, contributing to smoother operations and higher profitability.
• Drive Continuous Growth: Ongoing audits support sustained competitive advantage and enable retailers to adapt quickly to market changes and consumer preferences.

Audits improve inventory accuracy and reduce shrinkage, contributing to smoother operations and higher profitability. Overall, regular merchandising audits are a powerful tool for sustaining competitive advantage and driving continuous retail growth.

What is the main goal of a merchandising audit?

The main goal of a merchandising audit is to ensure that retail stores consistently execute merchandising standards and strategies effectively to maximize sales, enhance the customer experience, and maintain brand integrity. It involves evaluating how well products are displayed, priced, and promoted, as well as checking inventory accuracy and store compliance. By identifying gaps and areas for improvement, merchandising audits help retailers optimize store performance and drive business growth.

What metrics are typically used to measure merchandising success?

There are seven major metrics that are typically used to measure merchandising success.

• Sales Performance: Tracking overall sales, sales per square foot, and category-specific sales to evaluate how well merchandise drives revenue.
• Stock Availability: Measuring out-of-stock rates and inventory turnover to ensure products are consistently available.
• Planogram Compliance: Assessing how closely product placement matches the prescribed layouts, which affects visibility and sales.
• Promotional Effectiveness: Analyzing the impact of discounts and promotions on sales lift and customer engagement.
• Shrinkage and Loss Prevention: Monitoring inventory loss due to theft, damage, or errors to maintain profitability.
• Customer Engagement: Using shopper feedback, dwell time, and conversion rates to gauge how merchandising influences the buying experience.
• Price Accuracy: Ensuring shelf prices match POS and promotional materials to build trust and avoid lost sales.

These metrics together provide a comprehensive view of merchandising effectiveness and help guide improvements.

How often should merchandising audits be conducted?

Merchandising audits should be conducted regularly, with the frequency depending on the retailer’s size, store traffic, and business goals. For most retailers, monthly audits strike a good balance between maintaining standards and managing resources effectively. High-traffic or rapidly changing stores might benefit from weekly or bi-weekly audits to quickly catch and correct issues, while smaller or slower-changing locations may conduct audits quarterly.

Regular audits help ensure ongoing compliance with merchandising plans, promotional accuracy, and inventory management, preventing small problems from becoming costly. Ultimately, the goal is to establish a consistent audit schedule that supports continuous improvement without disrupting daily operations.

Can merchandising audits be done remotely?

Yes, merchandising audits can be done remotely, especially with advances in digital tools and mobile technology. Remote audits allow retailers and auditors to review store performance using photos, videos, live video calls, and data submitted by store staff or third-party inspectors. Platforms like Taqtics enable remote data collection, real-time reporting, and analysis, making it easier to monitor multiple locations without physically visiting each store.

While remote audits can save time and reduce travel costs, they work best when combined with occasional in-person visits to verify observations and address complex issues. Remote audits are particularly useful for ongoing compliance checks, quick spot audits, and stores in hard-to-reach locations, helping retailers maintain consistent merchandising standards efficiently.