The Overlooked Problem: Why Retailers Lose Money on In-Store Products
In-store products are essential to daily retail operations, yet many companies do not manage them with the same precision as inventory. As a result, inefficiencies creep in, leading to:
- Budget Waste: Unnecessary stockpiling of in-store products, leading to excess storage costs and unused materials.
- Store Opening & Refit Delays: Essential items not arriving on time, pushing back store openings and promotional campaigns.
- Operational Slowdowns: Employees spending valuable time sourcing missing supplies instead of focusing on customers and sales.
Most retailers see in-store product procurement as a simple task: order when needed, restock when low. But without a structured approach, these inefficiencies compound and directly impact profitability.
The Real Cost: How Poor In-Store Product Management Hurts Profitability
1. Budget Waste: Ordering the Wrong Things at the Wrong Time
Retailers often order in-store products reactively, without accurate forecasting. The result? Overspending on unnecessary items, over-ordering seasonal packaging that becomes obsolete, or under-ordering essential supplies and scrambling for last-minute fixes.
Retailers who lack a centralised supply strategy often pay higher costs due to fragmented procurement, multiple vendors, and unoptimised purchasing cycles.
2. Store Opening & Refit Delays: “We’re Waiting on Supplies”
Every store opening, renovation, or seasonal change relies on in-store products arriving on time. Missing signage, shelving materials, or display units can push back launch dates, causing:
- Direct revenue loss from delayed openings.
- Increased labour costs due to rescheduling store staff.
- Disruptions to marketing and promotional rollouts.
A single delayed shipment of operational supplies can cascade into thousands in lost sales for large retailers.
3. Productivity Loss: Wasting Employee Time on Fixing Supply Shortages
Store employees should not be spending their time chasing missing materials or making emergency supply runs. Every hour spent dealing with inventory shortages is time not spent serving customers, optimising store layouts, or increasing sales.
When in-store product management is inefficient, employees are forced into reactive problem-solving instead of focusing on strategic, revenue-generating activities.
The Fix: How Retailers Can Master In-Store Product Management
1. Centralise and Consolidate Sourcing
Many retailers work with multiple suppliers for their operational consumables, leading to logistical complexity, inconsistent quality, and higher costs.
A single-source supply model consolidates procurement under one trusted partner, ensuring:
- Standardised quality across all stores.
- Simplified purchasing with fewer invoices, vendors, and touchpoints.
- Bulk-order cost efficiencies that drive down spending.
2. Adopt a Demand-Driven Supply Strategy
Retailers forecast demand for their sellable products, but few apply the same logic to their in-store products. A structured, data-driven approach to supply planning ensures:
- The right quantities are ordered at the right time.
- Seasonal demand spikes are anticipated.
- Overstock and understock situations are minimised.
3. Move to an On-Demand Supply Model
Traditional procurement methods require retailers to store large quantities of in-store products on-site, leading to storage constraints and inefficiencies. The modern solution? A just-in-time (JIT) supply model, where in-store products are stored off-site and delivered exactly when needed.
At Worldpack, we help retailers shift to a warehouse-backed fulfilment system, meaning:
- Supplies are stocked at a central facility and distributed only when required.
- Retailers eliminate excess storage burdens.
- Every shipment is demand-driven, optimising cash flow and reducing waste.
Why In-Store Product Efficiency is a Competitive Advantage
Retailers who take control of their in-store product management:
- Cut unnecessary costs without sacrificing quality.
- Ensure seamless store operations with no supply gaps.
- Empower employees to focus on sales and customer experience instead of fixing supply issues.
Retailers already invest heavily in optimising their main product supply chains. It is time to apply the same discipline to the in-store products that keep their operations running smoothly.
Final Thought
Retailers who optimise their in-store product management do not just cut costs; they gain a strategic advantage. The best-run stores are not just the ones with the best products, they are the ones with flawless operations.
It is time to rethink how retailers handle in-store products. Because inefficiency is expensive, and operational excellence pays dividends.
If you need a partner to help you optimise every step of this process, we are just a message away.
