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Merchandising Efficiency
Definition
A measure of how effectively merchandising activities (e.g., displays, features, shelf placement) drive sales relative to the investment or effort required. Merchandising efficiency evaluates the productivity of in-store execution.
How It's Calculated
Varies by methodology; often evaluated as:
Incremental sales (or lift) ÷ Merchandising investment or support level (e.g., weeks, displays)
Example
A snack brand compares two display programs and finds that one generates significantly more incremental sales per display week, indicating higher merchandising efficiency.
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