Hey Tech Teams, Here’s What Merch Needs You to Know
Bridging the gap between merchandising and tech to drive better decisions.
If you’re in retail tech, you’ve probably heard complaints from your merchandising team. Maybe you’ve brushed them off as ‘just the way things are’ or assumed Excel is some kind of sacred text that merch teams refuse to move away from. But here’s the thing - those gripes aren’t just noise. They’re signs of inefficiencies that could be costing your business time, money, and missed sales opportunities.
Let’s break down some of the biggest frustrations merch teams have and what you - the tech team - can do to fix them.
1. PLM Isn’t a Merchandising System (and Never Will Be)
Product Lifecycle Management (PLM) systems are great for managing product development, but merch teams need more than just a repository of product data. When a PLM gets introduced, it’s often pitched as ‘the single source of truth,’ but here’s the catch, merch teams still end up using Excel because PLMs aren’t built for financial planning, stock allocation, or range building.
What tech teams can do: If you’re rolling out a PLM, don’t assume it solves everything. Ensure that merch teams still have a way to extract, manipulate, and analyse the data they need.
2. ERP Systems Are Only as Good as the Data You Feed Them
An ERP should be the backbone of your operations, but if it’s being fed bad data, it becomes just another expensive headache. Many merch teams work with ERPs that weren’t set up with their needs in mind causing issues with stock visibility, pricing, and product attribution.
What tech teams can do: Work closely with merch teams when implementing or optimising ERP systems. If they don’t trust the data in the ERP, they’ll default to Excel - and that defeats the entire purpose.
3. SKU Changes Cause More Chaos Than You Realise
From a tech perspective, changing a SKU might seem like a simple, logical step. But for merch teams, SKU changes can disrupt sales history, break back-in-stock notifications, and wreck reporting. A product that customers have signed up to a "back in stock" notification about suddenly has a new SKU? Say goodbye to that easy revenue.
What tech teams can do: Before making SKU changes, consider the downstream impact. Could the same goal be achieved another way? And if a change is necessary, make sure merch teams are involved early to mitigate fallout.
4. Merch Teams Live in Spreadsheets (For a Reason)
Yes, merch teams still use Excel. No, it’s not because they ‘refuse to change.’ It’s because many tools available to them lack the flexibility they need. Assortment planning, financial forecasting, and stock allocation often require manual adjustments, scenario planning, and layered calculations; things that rigid systems just don’t accommodate.
What tech teams can do: Before rolling out new tools, spend time understanding how merch teams actually work. If a system can’t replicate Excel’s flexibility, it won’t be fully adopted, so build something that gives them the best of both worlds.
5. Poor Product Data Creates a Domino Effect
When product data is messy, whether due to inconsistent attributes, poor hierarchy structures, or disorganised categorisation, it impacts everything from demand forecasting to marketing analytics. Merch teams rely on clean, structured data to plan effectively, and when that’s missing, bad decisions follow.
What tech teams can do: Prioritise product data governance. Work with merch teams to standardise attributes, fix gaps in hierarchy structures, and ensure consistency across all platforms.
6. Forecasting Tools Exist, But Data Quality Holds Them Back
Forecasting is one of the biggest areas where better technology could revolutionise merchandising. The problem? Many forecasting tools are only as good as the data they ingest. If data is incomplete, outdated, or inaccurate, then the outputs are useless.
What tech teams can do: Ensure that data feeding into forecasting models is robust, accurate, and up to date. Without this, no amount of AI or automation will make a difference.
7. Merch Teams Need Better Analytics Tools
Most merch teams still rely on static dashboards and clunky reports that don’t allow for real-time insights. This means trade meetings are often based on outdated numbers, and teams are forced to make critical decisions without live data.
What tech teams can do: Push for more interactive, real-time reporting tools that allow merch teams to slice and dice data in ways that actually help them make decisions.
Tech and Merch Need to Work Together, Not in Silos
Tech teams build systems to improve efficiency. Merch teams drive revenue. The two should be working hand in hand, but too often, there’s a disconnect. By listening to the frustrations of merch teams and designing systems that actually work for them, tech teams can do more than just ‘fix issues’, they can create a foundation for scalable, profitable growth.
So next time your merch team pushes back on a new tool or insists on sticking with Excel, take a step back and ask why. Chances are, there’s a very good reason, and a smarter way to solve the problem.