The Role of Data and Analytics in Modern Merchandising
Why numbers alone never tell the whole retail story
Retail is moving faster than ever. Brands have access to more data, more reports and more dashboards than at any point in history. Sales data, foot traffic, inventory flow and sell-through percentages all help build a picture of what is happening on the shop floor.
But here’s the truth. Data without context can send brands down the wrong path. A spreadsheet doesn’t show you a broken display. A sales report doesn’t tell you that half the testers disappeared. And inventory figures don’t reveal that a pallet of stock has been stuck in the back room for two weeks.
In merchandising, numbers matter. Visuals matter. People matter. And when you connect them all, that’s when the magic happens.
What Data Can Tell You
Data still plays a massive role in understanding how a brand is performing. It helps you:
• Identify sales trends: Spot your hero SKUs, slow sellers, and seasonal peaks.
• Choose the right visit frequency: If sell-through is fast, the store might need weekly merchandising. If not, a monthly cycle might hold.
• Track stock velocity: Understand how quickly stock moves through the supply chain and onto the floor.
• Predict restocking needs: With good data flow, you can forecast the timing of replenishment, preventing both out-of-stocks and over-ordering.
These insights are a great starting point. But they’re not the full picture.
Where Data Falls Short
If relying on numbers alone worked, every planogram in every store would be perfect. We know that’s not the case.
Here’s where raw figures can mislead brands:
• A store looks like a low performer:
The assumption: reduce support or merchandising hours.
The reality: the store never had the stock on the floor in the first place. Or the delivery arrived late. Or the stock is sitting in a secondary bin no one checked.
• The data says testers aren't converting:
The assumption: shoppers aren’t interested.
The reality: the testers are missing or empty, or staff didn’t know where they were stored.
• Sales look flat despite strong demand nationwide
The assumption: the category is cooling.
The reality: fixtures are broken, display space is compromised or products are shoved behind other brands.
Numbers don’t show these issues. Photos, merchandising reports and on-floor conversations do.
Why Images from the Sales Floor Matter
A photo is sometimes the missing piece of the puzzle. In one click, you can see:
• how your brand looks next to competitors
• whether your key SKUs are even on the shelf
• if your fixtures are clean, tidy and working
• how well staff are engaging with the category
• how real shoppers interact with the display
Photos ground reporting in reality. You can pair a dip in sales with a visual breakdown: missing stock, misplaced promotions, outdated POS or a competitor takeover.
This is where the value of a physical merchandising team becomes obvious. They don’t just tick off a planogram. They provide context, insight and confirmation.
The Human Element: Understanding What Data Can’t
A well-trained merchandising team sees what a dashboard cannot.
Missing training: If staff don’t know the products, they won’t replenish, they won’t upsell and they won’t protect testers or stock.
Back-room stock issues: Every merchandiser in New Zealand has found a full box of missing stock hidden behind a broom. Data will never uncover this.
Operational behaviour: Some stores simply run differently. Foot traffic patterns, staffing levels and manager priorities vary every day. Field teams pick this up quickly.
Store relationships: Positive relationships often lead to extra space, faster access to stock or early visibility of issues.
You only get this insight when people are physically present.
Merging Data and Merchandising: The Sweet Spot
The brands that consistently win in retail combine:
Hard data: sales, stock flow, foot traffic, conversions
Visual evidence: photos, display audits, gap checks, compliance snapshots
Field intelligence: training gaps, team engagement, operational problems, local competition
When these three work together, brands make smarter decisions. They can spot the difference between a genuine slow-seller and a blocked pipeline issue. They can identify stores that need more resources instead of less. They can fix problems early, not after a missed sales quarter.
Final Thoughts
Data is powerful. But data without context creates blind spots. The strongest merchandising strategies pair analytics with on-floor visibility and human insight.
If you want proactive improvements, better in-store execution and a complete view of what’s really happening on the shelf, you need all three: numbers, visuals and people.
