Smart Merchandising: A Comprehensive Guide for Outlet Management

by Bizom

August 04 | 06 min read


Smart Merchandising: A Comprehensive Guide for Outlet Management

In the fast-paced world of consumer goods, retail shelves have become more cluttered than ever with vast products options. Therefore the need to optimize stock placement and make products stand out amidst the competition, is becoming a bigger challenge. This is where Smart Merchandising or Retail Merchandising comes as a savior for retail businesses, helping their fieldforce serve outlets more efficiently.

What is Smart Merchandising?

Smart Merchandising is a retail intelligence tool that combines in-store data, machine learning and AI to monitor every retail shelf to ensure the right products are placed at the right place, in the right manner.

Empowering the fieldforce to be excellent merchandisers, Smart Merchandising fundamentally helps monitor and improve their market share, product assortment, placement, pricing, and promotion strategies. In this blog, we will explore the importance of Smart Merchandising and how it is currently revolutionizing the retail landscape.

But often many get confused between Smart Merchandising and visual merchandising. While both are co-related, Smart Merchandising can be explained as a more evolved form of visual merchandising. Here’s how:

Difference between Smart Merchandising and Visual Merchandising

Smart Merchandising Visual merchandising
Smart Merchandising focuses on shelf optimization through insights-led product placement and inventory management to boost in-store sales. Visual merchandising focuses on increasing the overall aesthetics of a store and product placements to increase footfalls and sales.
Uses retail intelligence Depends mostly on human judgment
Can be done by anyone with the help of retail intelligence Generally requires an expert at merchandising
Can be done at scale everyday by one person One person faces time constraint to finish all merchandising activities of all stores
Faster output Takes time to show result
Eliminates manual errors High risk of manual errors

Hence, as a successor to traditional visual merchandising practices in retail, Smart Merchandising comes with much more capabilities that empowers the merchandisers to get the output from each store. Let’s delve into the advanced features of Smart Merchandising.

Benefits of Smart Merchandising

1. Stock and Shelf Management with Image Recognition Models

In today’s competitive retail environment, the appearance of products on the shelf can significantly impact consumer decisions. With Smart Merchandising’s image recognition models, retail companies can analyze their product’s shelf position and ensure optimal visibility. These models help identify out-of-stock items and shelf gaps, enabling quick restocking to avoid lost sales opportunities.

2. Monitoring Changes in Stock and Merchandise

Regularly monitoring changes in stock and merchandise is essential to maintain a competitive edge. Smart Merchandising enables FMCG companies to track product availability, facings, and product mix. By analyzing this data, companies can make informed decisions to improve their product assortment, optimize inventory levels, and capitalize on emerging trends.

3. Market Share in Retail Shelves over Time

Smart Merchandising empowers FMCG companies to assess their market share on retail shelves over time. By measuring product performance against competitors, companies can identify growth opportunities, refine marketing strategies, and stay ahead in the dynamic FMCG market.

4. Product Assortment and Distribution KPIs

A successful product assortment is vital for FMCG companies. Smart Merchandising offers a comprehensive approach to measure and improve product mix across various distribution and ranging Key Performance Indicators (KPIs). By analyzing data on product turnover, popularity, and consumer preferences, companies can tailor their assortments to meet customer demands effectively.

5. Planogram Compliance and Shelf Placement

Proper placement of products on retail shelves is critical for visibility and sales. Smart Merchandising allows FMCG companies to measure planogram compliance, ensuring the right products are displayed in the right places. This strategic approach helps maximize product visibility, leading to increased sales and improved customer satisfaction.

6. In-store Pricing and Competitor Intelligence

Pricing is a significant factor influencing consumer purchase decisions. Smart Merchandising facilitates in-store pricing audits and competitor intelligence gathering. By understanding competitor pricing strategies across direct and indirect distribution channels, FMCG companies can adjust their pricing strategies for better competitiveness.

7. Effectiveness of Promotion Strategies

Promotional activities play a vital role in boosting sales and brand visibility. Smart Merchandising helps FMCG companies measure the effectiveness of their promotional strategies by capturing Point-of-Sale Material (POSM) displays, secondary displays, and hot-zone compliances. This data-driven approach allows companies to refine their promotions and achieve higher returns on investment.

So to optimize outlet management, increase product depth and get the max ROI, Smart Merchandising is definitely a game changer!

Why Choose Bizom's Smart Merchandising?

  • Seamless Integration: Bizom’s platform seamlessly integrates various merchandising tasks, making it a time-saving and efficient solution for FMCG companies.
  • Data-Driven Decision Making: With access to real-time data, companies can make data-driven decisions to optimize their product mix, placement, and pricing strategies.
  • Improved Visibility: Bizom’s Smart Merchandising ensures that products have optimal visibility on retail shelves, leading to increased sales and market share.
  • Competitive Advantage: By monitoring competitor activities and promotions, FMCG companies can gain a competitive advantage in the market.


Smart Merchandising is an indispensable tool for FMCG companies looking to thrive in a cluttered retail landscape. By using innovative tools like image recognition models and platforms like Bizom, companies can efficiently manage their stock, improve product assortment, enhance planogram compliance, optimize pricing, and measure the effectiveness of their promotions. Embracing Smart Merchandising will enable FMCG companies to stay ahead of the competition and achieve long-term success in the dynamic retail industry.

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Frequently Asked Questions (FAQs)

Bizom's Smart Merchandising empowers retailers with a comprehensive suite of tools to ensure perfect retail execution:

  • Automated Shelf Management: Automate retail shelves to enhance sales by ensuring products are correctly placed and presented.
  • Capture Multiple KPIs: Simultaneously capture distribution checks, facing audits, pricing audits, promotion compliance, and planogram adherence in a single transaction.
  • Comprehensive Product Mix: Achieve an optimal product mix by leveraging real-time data insights.
  • Real-time Data Tracking: Create detailed reports with real-time data, enabling precise decision-making.
  • Simultaneous Audits: Conduct order and merchandising audits simultaneously to streamline operations.
  • Image Validation: Validate data accuracy with real-time images of shelves, enhancing accountability.

Smart Merchandising offers a range of benefits for retail excellence:

  • Enhanced Retail Execution: Optimize store shelves to drive sales and improve customer satisfaction.
  • Real-time Insights: Make informed decisions based on up-to-date data and images.
  • Efficiency: Simultaneous audits and automated processes save time and effort.
  • Precise Tracking: Monitor KPIs accurately with visual validations.
  • Improved Customer Experience: Ensure product availability, proper placement, and effective displays.

Smart Merchandising ensures that products are available, properly faced, and strategically placed on shelves. This leads to a more organized and visually appealing store layout, making it easier for customers to find what they're looking for. Improved product visibility and accessibility contribute to a seamless shopping experience, ultimately enhancing customer satisfaction.

Smart Merchandising directly impacts revenue growth by optimizing various aspects of store management. It enhances product visibility, increases the effectiveness of promotions, reduces out-of-stock situations, and ensures better shelf placement. These factors collectively lead to higher sales, improved customer loyalty, and ultimately, revenue growth.