The value of synergised structures in merchandising services for selected South African retail channels

Abstract

Purpose: The purpose of this study was to explore the value of synergised structures in South African retail merchandising services. Specifically, it explored how senior managers in reputable retail organisations that sell fast-moving goods perceived the value added by supplier accountability, out-of-stock (OOS) management, operational efficiency, consumer satisfaction on the synergy between suppliers, retailers and merchandising service providers through capitalising on synergised merchandising structures in the South African retail sector. Design/methodology/approach: The study adopted an interpretivism paradigm using a qualitative inductive approach. Nine senior managers were interviewed face-to-face. The collected data was analysed by means of six-phased thematic analysis. Findings/results: Synergised structures can improve merchandising service levels by fostering supplier and retailer collaboration, improving accountability, and decreasing stockouts. In addition, maintaining on-shelf availability and operational efficiency relies on investments in human capital development, proactive monitoring and technology-enabled inventory management. Practical implications: The study offers strategic guidance for enhancing cost-effective solutions through shared infrastructure, OOS prevention, human capital development and structured engagement to improve service levels. Originality/value: The study enriches current limited literature on synergised merchandising structures, especially in the South African retail sector, where it is influencing sales and from the perspective of senior managers employed by major retailers.