Optimising Category Merchandising for better Retail Sales

Introduction

For merchandising leaders across Australian retail, the numbers tell a familiar story: according to Gartner, poor data quality costs organisations an average of $12.9 million per year. For category managers working across hundreds - sometimes thousands - of SKUs, that cost shows up in missed shelf dates, incorrect product specifications, and the endless back-and-forth of spreadsheet reconciliation.

The challenge is not a lack of product information. Suppliers have it. Your systems need it. The problem is the gap between what exists and what is accessible when your team actually needs it. When 40% of organisations still manage product information manually, according to industry research, that gap becomes a competitive liability.

This article explores how Australian retailers are rethinking category merchandising by connecting product data at its source - and why that approach delivers faster time-to-shelf, fewer errors, and merchandising teams that can finally focus on strategy rather than data chasing.

Retail shelf organised by product categories, showing clear labels and product placement

The Hidden Cost of Disconnected Product Data

Every product that reaches your shelves carries a data trail: dimensions, weights, compliance certificates, images, ingredient lists, sustainability claims. In a perfect world, that information flows seamlessly from supplier to retailer, updated in real time, accurate on arrival.

In reality, most merchandising teams operate differently. Suppliers send spreadsheets. Category managers re-key data into internal systems. Someone notices an error two weeks later. The cycle repeats.

Research from Gartner suggests employees can waste up to 27% of their time dealing with data quality issues—time that could be spent on range reviews, promotional planning, or supplier negotiations. For merchandising teams already stretched thin, that inefficiency compounds across every product category, every season, every supplier relationship.

The real cost is not just labour. It is delayed product launches, compliance risks from incorrect specifications, and the opportunity cost of reactive data management versus proactive category strategy.

What Connected Category Merchandising Looks Like

Connected product data changes the equation. Instead of multiple versions of truth scattered across emails, spreadsheets, and legacy systems, merchandising teams work from a single, supplier-maintained source.

The shift delivers three tangible benefits:

• Faster time-to-shelf: When product data arrives complete and pre-validated, onboarding cycles compress. New products reach shelves in days rather than weeks.
  

• Reduced rework: Suppliers own their data accuracy. When specifications change, updates flow automatically rather than requiring manual reconciliation.
  

• Improved compliance confidence: With traceable data provenance, audit trails exist by default. Compliance teams can verify product claims without chasing documentation.

For Australian retailers navigating increasing regulatory requirements—from country-of-origin labelling to sustainability disclosures—that traceability is becoming essential rather than optional.

The Role of Two-Way Data Exchange

Traditional product data portals operate in one direction: suppliers push data to retailers. The retailer's view is passive—they receive whatever arrives and work to make it fit their systems.

Two-way exchange creates something different. Retailers can specify exactly what data they need, in what format, for which product categories. Suppliers can see where their information gaps exist before submission, reducing rejection rates and rework cycles.

For merchandising teams, this shifts the conversation from 'please resend the correct specifications' to 'let's collaborate on getting this right the first time.' That is not just more pleasant—it is measurably faster. Like bees working together in a hive, when every participant contributes to the same structured system, the whole network benefits.

Digital merchandising dashboard displaying product categories and sales metrics

Making the Transition Practical

Transforming category merchandising does not require a multi-year IT programme. The most effective approaches start with a clear problem: perhaps it is a specific product category with chronic data issues, or a supplier relationship where manual processes consume disproportionate time.

Successful transitions typically follow a pattern:

•          Identify one category or supplier segment where data friction is highest

•          Establish a shared data standard that works for both parties

•          Connect through a platform that maintains a single source of truth

•          Measure the time savings, then expand to additional categories

The goal is not perfection from day one. It is demonstrating that connected product data delivers tangible value - value that justifies broader adoption across the merchandising function.

Ready to Transform Your Category Merchandising?

HivePix was built for merchandising teams who are tired of data chasing. Our two-way product data platform connects retailers and suppliers through a single source of truth—reducing onboarding time, eliminating version confusion, and giving your team confidence in every product specification.

Book a DEMO and see how connected product data can get your merchandising buzzing.