CPG Tools & Tech, Field Marketing, Field Sales

The Real Cost of Poor Retail Execution (And What to Do About It)

The Real Cost of Poor Retail Execution (And What to Do About It)

Retail execution—the way products are placed, presented, and promoted in-store—can make or break a CPG brand’s success. When done effectively it can help drive sales, enhance your brand’s image, and increase operational efficiency. Done poorly, it can cost you—in dollars, hours, relationships, and brand loyalty. Fortunately, there are proven ways to optimize your retail execution, and turn it into a competitive advantage. 

What is the impact of poor retail execution?

The costs of sub-par retail execution fall into three main categories: lost revenue, operational inefficiency and higher labor costs, and negative customer experience

1. Lost revenue. The most important aspect of retail execution by far is keeping goods in stock and in the right place. Every time a customer can’t find the product they’re looking for it’s a lost opportunity for a sale - and a potential sale for your competition. Research shows that 43% of consumers will buy a competitor brand if their preferred brand is out of stock, while another 25% will abandon their purchase altogether. In food and beverage retail alone, out-of-stocks account for an estimated $1.2 trillion in lost sales annually.  

Not displaying items correctly, according to planograms and other merchandising directives, can also undercut sales. Cluttered, disorganized displays drive customers away, costing retailers billions of dollars in sales each year. Inaccurate pricing is another execution error with potentially serious financial consequences. A price being off by even a few cents can add up to thousands of dollars in lost revenue over time

2. Operational inefficiency and higher labor costs. Put simply: the weaker your in-store execution game, the more time your field team will spend putting out fires and playing catch-up. Instead of gathering data and putting in face-time with store managers, they end up churning valuable time filling voids or chasing down missing products. They can’t cover as much territory in a day as a result, which could mean having to hire and train more staff to pick up the slack. 

3. Negative customer experiences. The ideal shopping experience is one where products are exactly where customers expect them to be, attractively displayed, accurately priced, and plentiful. When this isn’t the case, it not only reflects poorly on the store; it reflects poorly on your brand. That’s particularly true when it comes to special promotions, which are your brand’s chance to shine, so every detail counts. 

What are the root causes of bad retail execution?  

In-store execution is one of the most complex and labor-intensive aspects of getting goods into customers’ hands. Multiple players are involved, from the leadership teams that set merchandising and pricing strategies to the store associates that stock the shelves to the field reps that monitor store conditions to ensure the best possible sales. Getting all the players to work in sync requires careful coordination and communication. 

When in-store execution is less than optimal, it’s usually as a result of one or more of the following issues:

  • Manual and outdated tools. Relying on spreadsheets, binders, email, and other outdated tools is a recipe for errors and miscommunication. Without a single source of truth for all information and communication, it’s not only hard to execute successfully, but it’s nearly impossible to gather and analyze the data that could be helping you refine your processes and increase sales.
  • Lack of real-time visibility and communication between teams. When the various players in the execution process can’t quickly share information, ask questions, confirm instructions, or report issues, it’s a lot harder to ensure compliance. Texts and phone calls from the field to HQ are a stop-gap solution at best.  
  • Insufficient training and inconsistent processes. To achieve optimal execution across every store, it’s vital that all of your field reps are following the same procedures, tracking data the same way, and adhering to the same brand standards. A little more training up front can go a long way, and giving everyone the same systems and tools to work with goes even further.

How Modern Software Can Solve the Challenges of Retail Execution

The scale and complexity of modern retail environments, coupled with fierce in-store competition, make retail execution software an essential tool for CPG brands. Cloud-based, mobile-first platforms like Repsly can help brands streamline operations, boost compliance, enhance data-driven decision-making, and ultimately drive sales and customer satisfaction. 

Here’s how:

How to Improve Your Retail Execution

The cost of poor retail execution is undeniable. But the right technology and process improvements can make a transformative difference. Start by reviewing your current strategies and identifying weaknesses—communication breakdowns, inconsistent processes, inaccurate data, etc. Once you’ve diagnosed the problems, it’s time to equip your field teams with a mobile retail execution software and implement standardized training and procedures across your entire team. Going forward, you can use data-driven insights to continually optimize and adjust your retail execution processes to get the most out of your field team and give your products and promotions the best chance at success. 

Ready to get started? Discover how Repsly can help you take your retail execution to the next level–and get measurable results. 

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Sara Bullock

Sara Bullock serves as the Growth Marketing Manager at Repsly, specializing in go-to-market strategy. With a focus on content, demand generation, social media, and digital marketing, she excels in driving strategic growth for the company.

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