Many retail brands have started refocusing their energy on conducting retail audits. They use brand representatives or field reporters to do the work. Most of them manually record their findings on a piece of paper or use a retail audit app to compile essential data. Once they successfully record information, they forward the information to the organization and the retail audit is complete.
If you’re asking yourself the question: ‘Why is a retail audit or grocery store audit so important? And what are its benefits?’, then read on. We have compiled a quick list of the top benefits of retail auditing:
Retail Audits enable you to identify gaps in the retail process.
An important factor worth considering is the role that retail auditing plays in helping you identify potential gaps in your current retail process.
Be it product placement, display, or promotion; retail auditing gives you a sense of where you’re going wrong. As such, it enables you to take proactive measures to rectify past mistakes. Following from this, we can say that the importance of a retail audit lies in its scope for corrective action.
Without an understanding of your mistakes, you cannot plan a successful retail strategy. Thus, we can also say that retail auditing helps you reshape or redefine your business goals as it shows you where you’re thriving and in what areas you are lagging.
Retail Audits help you measure and increase the success of your product within a retail store.
What are the top products that are performing well within a retail store? Is your product one of them? Is it generating more revenue now than it did a quarter of a year ago? Or is the growth stagnant? If the growth is stagnant, how can you expedite sales?
These are some crucial questions that a retail audit helps you answer.
Moreover, retail auditing allows you to analyze and optimize your product placement and display within a retail store. This has the potential to help you maximize the sales generated by your product in that given store.
For example, products that are placed at eye level tend to attract the attention of your customers. Similarly, products that are placed at the foot level might not enjoy as much attention. Using this knowledge, you can redefine your current retail strategy and optimize product placement and display to expedite sales within the retail stores that are affiliated to you.
Retail Audits help you check and correct a retail store’s compliance with your rules & regulations.
Brands don’t have the time to manually inspect a retail store’s compliance with their rules and regulations. After all, one brand will potentially have hundreds, if not thousands of retail stores that are affiliated to them.
But that does not mean that timely auditing should not be done. A brand needs to check if a retail store is complying with their existing rules & regulations. They need to assess if their business agreement regarding product placement, pricing, and promotion are being followed across different stores. This is where retail auditing comes in.
So the third and most important benefit of a retail audit is that it helps you check the current status of a retail store’s compliance with your rules & regulations. Let’s say that a retail store has not complied with your pre-agreed norms; you can take action accordingly.