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What is retail compliance?
The challenges brands and retailers face in striving for compliance
Point of sale (POS) is a persuasive tool that can substantially boost in-store sales and product visibility. It is ideal for highlighting new products and creating customer engagement in the competitive retail environment. Retail display compliance is when brands and retailers work together to ensure the POS display reaches the right store at the right time and stays fully stocked.
Compliance for brands and retailers doesn’t stop there. They must also grapple with ensuring the longevity of the display unit when heavily shopped, the correct positioning in store, impeccable assembly by staff, and the end-of-life disposal at the end of the campaign.
This article touches on the challenges explored thoroughly in POPAI’s Compliance and Sustainability Report, which was sponsored by Linney. You can read the report here.
The challenges for brands
Complete display compliance has its obstacles. POS, as a sales channel, often demands a sizable chunk of the marketing budget. Yet, a report by the retail professional body POPAI highlighted that while 86% of brands know how much of their permanent POS was placed in store, only 72% of brands can say the same for temporary POS. This becomes problematic for brands relying on this channel to boost new product sales and increase overall basket size in store.
How brands should navigate retail compliance
Logistical puzzles need to be solved, such as navigating the physical barriers to store delivery, countering premature display removal, and overcoming communication breakdowns that might prevent installation teams from doing their jobs.
Brands may also use third parties, such as field and merchandising agents, to install and stock products, but not all will have the resources, especially for temporary POS.
Assembly and stocking often fall to on-the-floor store workers stretched for time. This leaves brands with the puzzle of measuring compliance, as finite resources impact auditing in-store displays. However, a few options are available to brands to improve their retail compliance.
Improving compliance: what the industry is saying
POPAI’s data highlights:
- Prefilled display units reliably find their way onto the shop floor; stores don’t want to waste their paid-for products that came with the display.
- Merchandising companies record remarkable compliance success rates, close to 100%, pointing toward a potential ally for brands – especially in their flagship stores – to save precious resources.
The future
Upon closer examination, the heart of the compliance gap lies in a scarcity of resources, especially staff members who need more time and knowledge to install and maintain POS displays. Addressing these shortfalls demands a proactive strategy that refines resource allocation to bolster a brand’s visibility and presence.
By harmonising these factors, Linney guides brands through retail compliance, ensuring their retail displays are delivered to the store on time and to retailer specifications. Read the POPAI report for a further breakdown between temporary and permanent retail display compliance.
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