The retail sector in South Africa is not only a major contributor to the country’s gross domestic product, with a contribution of 20%, but also a major employer, with approximately 3.36 million people being employed in this sector (Labour Research Service, 2024; University of Johannesburg, 2024). Being earmarked as the sixth most important sector for economic growth in South Africa, the sector presents a main distribution channel for connecting products with consumers (International Trade Administration, 2024). However, in the contemporary world of economic instability, technological advancement and competition, the sector is facing challenges related to efficiency, agility and quality service (Krisnadewi & Soewarno, 2023). These challenges are impacting sales, profitability and retailers’ ability to adapt to a rapidly changing landscape. Except for growth achieved in 2019, retail sales in South Africa, measured in real terms, decreased by 0.8% year-on-year (Stats SA, 2024). Other challenges include supply chain disruptions, rising operational costs, a digital divide, skills shortages and outdated technologies (Kudakwashe & Pooe, 2024). To address these challenges and build resilience, the system architect, including organisation, network, operational environment and technology advancement, needed consideration. All services within the merchandising sector need to be integrated and perform optimally to remain relevant and meet the customer requirements. However, without a clear understanding of the benefits of synergised merchandised services, there will be little motivation for systemic thinking, innovative solutions and collaboration among key role players in the merchandising landscape in South Africa.

Merchandising refers to theories, strategies and practices adopted to promote products within the retail sector with the aim of optimising sales and brand visibility (Karabiyik & Elgün, 2021). This includes the visual presentation of products and services, whether physical or virtual, with the aim of appealing to the senses of customers, thus attracting and retaining consumers, and ultimately driving sales (Stoica, 2023). Merchandising involves intentional and strategic offerings, promotions, displays, attractive pricing and sales. Effective merchandising, however, requires in-depth knowledge of consumer preferences and market trends to effectively meet consumer demands and maximise profits. In addition, merchandising practices should stay abreast of the organisation and its brand (Karabiyik & Elgün, 2021). Key roles in merchandising include effective product display, inventory management and strategic stocking (Jacobs & Karpova, 2020). Products should be available, attractively displayed and market trends need to be analysed. Professionals working within the merchandising system, such as planners, product developers, buyers and sourcing coordinators, have a distinct role in the product lifecycle. As such, interaction between these professionals is crucial for realising the benefits of a synergised merchandising infrastructure or ecosystem (Jacobs & Karpova, 2020). In order to deal with the challenging contemporary world, South African retailers have to modernise merchandising by integrating technology into merchandising strategies (Stoica, 2023). This includes the use of augmented reality, virtual reality, mobile applications, interactive kiosks, smart devices that create interactive and personalised shopping experiences. Modernised merchandising directly influences consumer engagement, experience and retention, an important consideration in view of competition with online retailers. For modernising merchandising, structural synergy is required to enable stakeholders in the merchandising process to optimise collaboration towards the attainment of a common goal. This implies that merchandising related information and resources should be shared, and decisions made collectively. Synergised merchandising structures could add value through improved operational efficiency. However, the effectiveness of synergised structures can be threatened by inadequate information, data security issues, lack of trust among stakeholders, improper coordination and an inability to solve systemic problems (Alanazi & Alenazi, 2023).

South African retailers often struggle with inefficient inventory management and logistics, which results in out-of-stock (OOS) situations (Barann et al., 2022). This then has a knock-on effect on in-store OOS situations, which occur when products are unavailable at the point of purchase. Such an OOS situation reflects a lack of synergised structures and a lack of collaboration between suppliers and retailers, which is vital for the long-term viability of the retailers (Madhani, 2021). Without meticulously designed merchandising services guarantees that products are on the shelf when and where consumers need them, challenges will be experienced with customer attraction and retention (Smith, 2024).

Merchandising services have a significant effect on consumer orientation, including how businesses prioritise customer needs, satisfaction and long-term relationships over immediate sales. Ineffective merchandising services could lead to shorter client visits, lower sales and a decline in consumer loyalty (Štulec et al., 2021). To this end, Hugos (2018) asserts that in a highly competitive sector, retailers need to stand out from the competition. It is thus vital to build effective merchandising service structures that will create synergy between all the stakeholders involved in the merchandising process and streamline the supply chain network, involving both individuals and companies collaborating to provide goods to consumers (Stoica, 2023). Being a major source of competitive advantage, effective supply chain management (SCM) provides an opportunity for growth and innovation. The efficient management of On-Shelf Availability (OSA), which means product availability at the customer’s preferred time and location, is an example of such innovation (Barann et al., 2022). Ineffective OSA management can have a detrimental effect on how consumers navigate the store, physically or virtually, leading to lower sales and the risk of losing consumers (Alanazi & Alenazi, 2023).

Merchandising services are vital for ensuring OSA and encapsulating contractual obligations with suppliers in pursuit of satisfying and retaining consumers. Studies conducted by Stoica (2023), Basu et al. (2022), Thomas et al. (2018) suggest that effective (synergised) merchandising structures, incorporating a comprehensive suite of solutions, improve consumer retention. These solutions include cost-reduction initiatives through streamlining operations, enhancing customer experience and leveraging technology for growth. The identification and successful implementation of such solutions require suppliers and retailers to collaborate (Stoica, 2023). With fixed and variable costs identified as one of the biggest challenges facing the South African retail sector, this is one of the key areas in which retailers consider strategies to reduce expenses (Stats SA, 2024). Given that growing fixed and variable costs have a direct impact on profitability, financial resources, and ultimately a product’s competitive positioning, retailers are depending more on merchandising companies to manage these costs efficiently (Kudakwashe & Pooe, 2024).

Due to the paucity of research on the value of synergised structures and existing literature in the South African retail sector, especially from a cost synergy perspective, this study was deemed important. The highlighted gap suggests that the sector needs to comprehend the potential benefits of synergised structures to be more open to guidance in terms of developing clear and concise planning strategies. This study, therefore, aims to address this critical research gap and sheds light on the value of synergised structures in merchandising services within the South African retail sector.

The purpose of this study was to explore the value that synergised structures add to retail merchandising services in South Africa. The objective was to interview senior managers in reputable retail organisations to explore how they perceive the value added by supplier accountability, 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. This study aimed to deliver strategic insights for attaining greater merchandising service levels within the South African retail sector.

The South African retail landscape is experiencing unprecedented transformation (Tshivhase, 2024), creating the need to explore innovation in standard operating procedures, as in the case of synergised structures. Synergy, according to Xiao (2020), refers to seamless collaboration between two or more parties or organisations with the aim of achieving a mutual goal, such as cost saving or improved productivity that, if attempted individually, would not have been possible. In the retail sector, for example, synergised merchandising builds on collaborative arrangements and mutually accepted standard operating procedures designed to coordinate the actions of stakeholders through sharing information and resources, leading to effectiveness and efficiency. Synergised merchandising structures apply to in-store marketing, inventory management, distribution and execution with the aim of optimising service levels and operational efficiencies (Ayotunde et al., 2021).

According to Chen et al. (2025), in the current competitive and changing environment, cost-saving and effective SCM practices are vital for success in the retail sector. A direct consequence of effective SCM is on-shelf-availability (OSA), an imperative for market responsiveness and customer satisfaction which, in turn, enhances retail performance and competitiveness. As such, there is a need to synergise merchandising structures (Huang et al., 2025). Synergised merchandising structures improve OSA by ensuring continued product availability through collaborative demand planning, effective inventory management and coordinated replacement actions, thus reducing OOS events (Tshivhase, 2024). Potential OOS events can be further reduced through the effective sharing of data within synergised merchandising structures as it enables real-time visibility and awareness of stock levels which, in turn, leads to optimised resource allocation and productivity. In a synergised context, resource (physical, information, human, financial and technical) optimisation is vital for ensuring smooth operations, meeting customer demands and achieving a competitive advantage.

Adopting advanced technologies within organisational operations is vital for ensuring both operational and organisational competitiveness (Macpherson & Werner, 2025). In the retail context, digital technologies strengthen synergised merchandising structures as they improve oversight of merchandising processes, inventory control and customer relationship through integrated communication systems and platforms, continued data sharing, real-time information exchange and data-driven decision-making (Inglis, 2023). The adoption of technology in merchandised structures enables the creation of personalised customer experiences and streamlined operations, as well as enables role players to combine their collective competencies (knowledge, skills, abilities and expertise) to seamlessly share knowledge, foster innovation and improve efficiencies (Barann et al., 2022). However, it also highlights the importance of locating competent and reliable operational employees within these structures (Greer, 2021).

The urge for innovation in the contemporary retail environment imposes the need for synergised structures, comprising operational, technical, knowledge, marketing, financial and human capital components. Synergy implies common objectives, collaboration, information exchange and resource optimisation (Grant & Phene, 2022) which, in the context of merchandising services, relates to the strategic selection, presentation, pricing and promotion of products, mitigation of risks (such as OOS events), and satisfying ever-changing customer demands. Firstly, operational synergy implies streamlined and standardised procedures, elimination of duplications, and optimal utilisation of resources through cooperative inventory management and coordinated supply chain activities. This synergy is achieved through collaboration among multiple stakeholders, operational effectiveness, efficiency, productivity and reduced costs. Secondly, technical synergy encompasses the integration of technological and informational systems of both retailers and suppliers for improved merchandising processing, real-time information exchange, informed decision-making and responsiveness to the supply chain and inventory management (Gupta, 2021; Stoica, 2023).

Thirdly, knowledge synergy capitalises on the integrated competencies of various stakeholders for effective decision-making and problem-solving. Knowledge management is accomplished through the use of platforms that enable information sharing, collaborative learning and joint initiatives, creating an enhanced understanding of market dynamics and customer preferences. Fourthly, marketing synergy comprises the development of joint marketing campaigns and promotional activities for ensuring consistent and continuous brand messaging and customer engagement, leading to increased sales, greater market presence, new customers and customer loyalty. Fifthly, financial synergy refers to the monetary gains derived from integrating resources, competencies and operations within synergised structures. This is achieved through grouping buyers, negotiating better terms with suppliers, shared logistics, collaborative cost management and optimising the allocation of resources, and leads to cost savings, economies of scale and increased profitability. Lastly, human capital synergy is obtained through the strategic deployment of key employees across the merchandising network. This leads to the optimal use of talent, time savings and the effective use of the human resources budget (Roberts et al., 2022; Rodin, 2023).

Synergised merchandised structures are characterised by the effective collaboration of different stakeholders working towards a common goal, which makes retailers more relevant and effective (Fisher et al., 2021). The various stakeholders work collaboratively towards the achievement of a common goal. Outstanding characteristics of synergised merchandising structures are that they are customer oriented, provide supply chain efficiency and contribute to overall organisational performance. In addition, the optimisation of resources reduces operational costs and ensures optimal functioning.

Synergised merchandising structures are also characterised by technological integration, which enables the exchange of real-time information and communication, efficient data analysis, and improved decision-making and problem-solving across all stakeholder groups (Klingenberg et al., 2021), while maintaining a customer-centric focus. Outcomes of synergised merchandising structures include operational effectiveness, improved customer satisfaction and overall organisational competitiveness. Ultimately, it leads to an improved brand and market presence, sustainable growth and significant competitive advantage (Krisnadewi & Soewarno, 2023).

However, the adoption of synergised merchandising structures is not without risks, and this is especially in relation to the exchange of information and data security (Jacobs & Karpova, 2020). With various organisations collaborating and sharing information, there is always an increased risk of unsolicited access, data leaks and cyber-attacks. As such, retailers have to commit to robust data security interventions such as encryption, secure networks and stringent access control to safeguard sensitive information and ensure compliance with the Protection of Personal Information Act (POPIA) (Aroba et al., 2023). Trust and confidentiality agreements are at the centre of successful collaboration, and this extends to the safeguarding of confidential information. Without trust and assurance of confidentiality, the potential benefits of synergised structures are undermined. As such, developing and maintaining high levels of trust is vital and achieved through formal legal agreements such as non-disclosure agreements and a mutual commitment to common strategic objectives (Rodin, 2023).

Synergised merchandising structures pose various benefits to the South African retail sector but require awareness and knowledge of its key characteristics (Aroba et al., 2023). For example, optimal resource allocation, information exchange, and sharing of best practices assist in maximising productivity and reducing operational costs. By improving operational efficiency and ensuring continued product availability, retailers are able to provide product differentiation and customer satisfaction and increase their competitive advantage in a dynamic industry (Feldman & Jiang, 2023).

Besides immediate operation benefits, synergised merchandising structures can also drive strategic value creation in the South African retail sector (Tshivhase, 2024). Value is added through collaborative learning and information exchange amongst stakeholders, promoting strategic alliance, innovation and best practices. Synergised merchandising structures contribute to mitigating risks and increasing resilience, enabling incorporated retailers to deal with potential shocks. Such retailers are able to diversify supply bases, share risk assessment data and collaboratively manage supply chain disruptions, such as OOS events (Wang & Li, 2021). They also support sustainable organisational practices through resource efficiency, waste reduction and environmentally friendly initiatives, meeting customer demands in this respect (Oyetoro, 2024).

An interpretivism paradigm and a qualitative inductive research approach using semi-structured interviews were employed to uncover the knowledge, experiences and perceptions of knowledgeable and experienced individuals (Saunders et al., 2018). This approach was considered most suitable for an analysis of the application of synergy and identification of potential outcomes within the South African retail sector. As such, a systematic and structured investigation of complex nuances within the South African retail industry was carried out. To ensure the integrity of the data collection process, data analysis and the reporting method adopted in the study, ethical clearance was obtained.

The purpose of this study was to explore the perceptions of senior managers within the South African retail sector on the value of synergised structures in retail merchandising services within the country. To achieve this purpose, the perceptions, views and experiences of experts in the South African retail sector were sought. For this reason, senior managers were purposefully selected because they were deemed able to provide in-depth information about merchandising structures within the South African retail sector. In recruiting participants, specific emphasis was placed on merchandising services and recruitment at the head offices of four major retailers (Shoprite, Checkers, Pick n Pay and Spar) in the country.

The paucity of research on the value of synergised structures in retail merchandising services in South Africa, especially from a cost synergy perspective served as motivation for this study. Generally, the South African retail sector is under immense pressure to not only boost sales but also to find more economical methods of operations. This is especially vital for addressing challenges, such as a lack of synergy between suppliers and retailers in the supply chain. These challenges manifest in vital issues, including improper OSA management, OOS situations damaging the reputation of organisations which, in turn, result in brand switching, which ultimately impact on profitability and consumer retention. With the aim of providing solutions to enhance productivity, efficiency and responsiveness and ensuring optimum long-term performance and optimal resourcing, this study was deemed necessary. In addition, given that synergy adoption in the South African retail sector is still in its growing stages (Tshivhase, 2024), this study particularly provides a South African perspective to guide the retail sector in developing clear and concise planning strategies for synergised structures and contribute to the existing body of knowledge relating to synergised structures.

Both ethics clearance and the gatekeeper’s approval were obtained before collecting the required data. The criteria for inclusion were that participants had to be employed at a senior management level within the head offices of the four major retailers in South Africa (Shoprite, Checkers, Pick n Pay and Spar). Participants were primarily selected for their ability to provide comprehensive and relevant views into synergised merchandising structures. The purposive non-probability sampling method was used to recruit the nine participants. Once identified, potential participants were then contacted either telephonically or via organisational email to invite them to participate in the study. Information shared in the invitation included an explanation on the nature of the study as well as ethical considerations such as issues of consent, recording of the interviews, confidentiality and the right to withdraw at any time (Creswell, 2014). Those who agreed to participate had to complete and sign a consent form before the one-on-one sessions were scheduled. To ensure the comfort of participants during the interviews, the sessions were primarily conducted in the participants’ offices for between 30 min and 45 min each.

The study focused exclusively on the South African retail sector. Table 1 presents a descriptive profile of the nine senior managers who participated in the study, a sample size deemed as satisfactory because data saturation was achieved. The participants held senior management roles with an average of 13.4 years’ experience in the retail sector. The participants represented diverse regions with the Eastern Cape leading with six representatives.

In-person semi-structured interviews were conducted between 01 August 2023 and 30 September 2023. The duration of the interviews was between 45 min and 115 min. Data saturation was achieved during the last interview, as no new meaningful information was being shared. An interview schedule was used, eliciting the participants’ perceptions regarding the effectiveness of synergised structures in improving productivity, sales, and managing service levels, and the vital role of technology and addressing OOS situations. Where necessary, follow-up questions were posed to probe more detailed information or gain greater clarification. With the consent of participants, all interviews were recorded.

Congruent with the POPIA, consent was obtained to audio-record the interviews, which were then transcribed and checked for accuracy by systematically cross-referencing them with the field notes taken. Any potential identifiers, such as a participant’s name, were removed, and each participant was allocated a code, such as (SB1) (Senior Buyer 1) to ensure anonymity. Microsoft Word was used for organising and compiling of the data, which provided a vital framework for managing the data. The collected data was systematically saved and separated based on unique identifying characteristics to enable user-friendly access and usage (Saunders et al., 2018).

To ensure data integrity and security (Showkat & Parveen, 2017), the data was to be securely stored and password protected for a period of 5 years. According to Cypress (2017), trustworthiness in qualitative research is guaranteed by adopting a rigorous research process in which scientific principles of applicability, consistency, neutrality, truth and value are applied. The process followed in this study includes the careful selection of participants to ensure that they met the selection criteria, conducting the interviews in the participants’ offices, allocating adequate time to each interviewee, probing consistent questions across the participants, accurately recording and transcribing the gathered data and following Braun and Clarke’s (2006) highly regarded data analysis process. To ensure the credibility of the findings, participants were purposefully selected to ensure that they would be able to contribute meaningfully to the study by providing insightful and rich data. Dependability was achieved by ensuring that the extracted codes were representative of the responses, and this was confirmed by employing Atlas.ti during data analysis. Confirmability was achieved by making field notes and transcribing all interviews to capture the authentic responses of all participants, and by double-checking that the codes did reflect the content. Transferability was achieved by comparing the results of this study with existing literature and similar previous studies exclusively related to synergised structures.

The six-phased thematic data analysis process by Braun and Clarke (2006) for grouping interview data into identifiable coded themes and sub-themes was adopted in this study. Deductive open coding was used to systematically analyse transcripts and field notes to identify, evaluate and report similarities and patterns in responses for the purpose of identifying codes (Braun & Clarke, 2021a, 2021b; Byrne, 2022). These codes were then rechecked to ensure that they were in congruence with the verbatim responses, after which they were categorised into themes and compared against existing theoretical frameworks.

Themes and sub-themes that emerged with responses are presented following the sequence of inquiry, starting with perspectives on the benefits of syndicated merchandising structures and collaborative synergy in retail, followed by the role of technology in retail then moving to perspectives on managing merchandising service levels before concluding with perspectives on how to address OOS situations. Verbatim quotes are integrated into the discussion to provide rich, trustworthy evidence that explains key themes and sub-themes, as well as to contextualise the analysis in the participants’ own words.

In terms of the need of space for intellectual humility within an academic environment, two sub-themes emerged: Improved service efficiency as well as Resource optimisation.

Sub-theme 1: Improved service efficiency: The first sub-theme, Improved service efficiency, as described by the participants, entails the flexibility and agility for meeting the ever-changing needs of suppliers and consumers, which can ultimately improve the merchandising services’ overall effectiveness. Some of the participants articulated this as follows:

The participants saw Synergised Merchandising Structures as an act of moving resources around more quickly when needed, making it more agile and responsive. Both (SM1) and (SMC) agreed that service efficiency is improved by agility, which is made possible by synergised merchandising structures. The participants confirm that the retail sector should recognise and value the effectiveness of synergised merchandising structures. (SM1)’s notion that Synergised Merchandising Structures lead to agility is aligned with the results of a study by Schäfer et al. (2023) that suggest that building structural agility may be a major factor in preserving a competitive advantage.

Sub-theme 2: Resource optimisation: The participants identified Resource optimisation, the second sub-theme, as a key benefit of Synergised Merchandising Structures. They emphasised the importance of synergised merchandising structures in guaranteeing uninterrupted service. The responses address uninterrupted service as well as preventing service gaps. (SMM) and (SB2) articulated as follows:

Both (SMM) and (SB2) depicted Resource optimisation as a two-way-tier benefit of Synergised Merchandising Structures as optimising resources as a shared objective and concern in the context of synergised merchandising structures not only avoids OOS situations but also helps with staffing decisions. The participants’ responses suggest that Resource optimisation can be used as a proactive strategy of ensuring that there is enough manpower which, in turn, is vital for ensuring continued sustainability of quality service standards.

Two sub-themes related to Collaborative Synergy in Retail were extracted, these being Common goal achievement as well as joint promotions for sales growth.

Sub-theme 1: Common goal achievement: The participants perceived Common goal achievement, the first theme, as a conscious benefit and acceptance that collaborative synergy may aid in the resolution of issues at store level and augment overall productivity. One participant explained this as follows:

(SB2) illustrates being conscious of Common goal achievement and depicts that achieving a common goal serves as the foundation for collaborative synergy. The acceptance of a lack of knowledge is also seen to weaken the general effectiveness of retail operations and aids in the resolution of problems at store level, which is relevant within the South African context. Common goal achievement consciousness fosters a sense of unity among stakeholders and moves them closer to shared objectives.

In addition, there was a notion that:

shows that it is important to coordinate the efforts of various stakeholders towards shared objectives. This is in line with Chen et al. (2025), who advocate the urgency of collaborative synergy in the retail sector. In the retail sector, the essence of collaborative synergy is focusing on the importance of shared objectives and exploring the collaborative dynamics among stakeholders, thus:

The responses obtained from the participants suggest that a cohesive approach to common goals enhances the productivity and efficiency of retail operations.

Sub-theme 2: Joint promotions for sales growth: The second sub-theme extracted in relation to Collaborative Synergy in Retail is joint promotions for sales growth, which includes how collaborative efforts can materialise into prospects for tangible sales development. This sub-theme reflects a dual perspective, that of the role of retailer and other stakeholders for generating synergies:

Huang et al. (2025) noted that increased sales and the possibility for market share growth are facilitated by stakeholders working together on joint promotions and store layouts.

The participants emphasised the strategic importance of collaboration in advancing joint activities, particularly through promotions. This view was reiterated by (SB1) who in the context of research, valued the coordinated promotional efforts, as stakeholders generate synergies that increase sales and may improve the retail company’s market position. The participants’ collective views suggested that retail stakeholders can use collaborative synergy as a practical tactic for increasing sales growth, which emphasises that collaborative efforts in promotions may be an effective means of accomplishing shared objectives and promoting growth in the competitive retail sector.

In terms of the Role of technology in retail, two sub-themes emerged, which are the critical importance of technology and enhancing data-driven decisions.

Sub-theme 1: Critical importance of technology: The first sub-theme reflects the crucial role that technology performs in the ever-changing retail environment. The participants perceived technology as vital for generating sales reports, identifying trends and assisting with well-informed decision-making. In this respect, one shared the following:

Both (SM2) and (ROM) depicted the effective adoption of technology in the modern retail operations. The participants’ responses suggest that there exists a significant need to invest in technology, that staff members need specialised training, and that technology infrastructure needs to be strategically aligned with overarching company goals.

Sub-theme 2: Enhancing data-driven decisions: The second sub-theme extracted in relation to the Role of Technology in Retail is enhancing data-driven decisions. They emphasised the importance of adopting technology tools for data analysis, yielding insights essential for strategic decisions, including avoiding OOS situations. One of the participants articulated as follows:

(SB2) illustrates that being aware that technology enhances information flow and accelerates data-driven decision-making. According to the participant, the development of synergised occurs structures in retail as technology acts as a catalyst for deriving useful insights from extensive datasets. The participants’ responses highlight the need for ongoing investment in technology infrastructure, employee development and integrating technology into broader business strategies, promoting a culture of data-driven decision-making. This is in line with Macpherson and Werner (2025), who emphasised that technology is vital for strategic decision-making by efficiently utilising data. In addition, the ineffective adoption of technology is also seen to weaken the general effectiveness of retail operations and aids in the making of strategic decisions at store level, which is relevant within the South African context.

Two sub-themes related to managing merchandising service levels were extracted, these being Supplier accountability and micro-management monitoring.

Sub-theme 1: Supplier accountability: The senior manager participants perceived Supplier accountability, the first theme, as crucial for maintaining service levels, which involves mechanisms to ensure suppliers fulfil their responsibilities to retailers. One explained this as follows:

In addition, one claims that:

The findings show that frequent check-ins and performance reviews are essential for maintaining accountability and resolving challenges swiftly. In the retailers, sustainable service levels, establishing clear performance metrics, regular reviews and organised communication channels are vital. This is in line with Zheng et al. (2025), who stress the importance of continuous communication and monitoring frameworks to ensure suppliers meet their commitments. The responses obtained from the participants highlight the necessity of regular discussions and monitoring to ensure supplier accountability and, in turn, ensure proactive resolution of supplier-related issues and the successful maintenance of service standards.

Sub-theme 2: Micro-management monitoring: The second sub-theme extracted in relation to managing merchandising service levels is micro-management monitoring, which includes maintaining optimised merchandising standards. This sub-theme reflects a dual perspective, that of being the methods used to track and manage performance, coordinating activities, as well as service level management and supplier accountability:

Aroba et al. (2023) noted that maintaining merchandising standards in retail operations is mostly dependent on hourly monitoring and micro-management. This, in turn, is particularly important in the South African retail sector, which is expected to meet service standards while adapting to the changing market demands.

The participants emphasised the critical role of regular observation and prompt action in upholding merchandising standards. The participants’ collective views suggested that there is a need for hourly monitoring and micromanagement to sustain service levels, underscoring the importance of ongoing supervision, defined performance criteria, regular reporting and structured protocols. The senior manager participants perceived consistent monitoring and micromanagement as vital for managing merchandising services in the South African retail sector, ensuring high service standards, and reinforcing supplier accountability through continuous oversight and prompt corrective actions.

Merchandisers play a crucial role in retail operations by ensuring OSA, directly impacting sales and consumer satisfaction. Being aware of the responsibilities of merchandisers in creating synergised structures, as well as the consequences thereof for suppliers, is vital. Two main themes were extracted in relation to addressing OOS situations: Responsibility of merchandisers and consequences for suppliers.

Sub-theme 1: Responsibility of merchandisers: The first sub-theme, Responsibility of merchandisers, as described by the participants, entails preventing OOS situations and maintaining supplier relationships which, in turn, can ultimately improve the merchandising services’ overall effectiveness. Some articulated this as follows:

The participants saw merchandisers are crucial for guaranteeing product availability and effective stock management. Both (SM2) and (O) agreed that there exists a concrete connection between strategic merchandising and avoiding stockouts as merchandisers handle stock ordering and product flow to avoid OOS issues. They confirm that the retail sector should recognise the role of merchandisers in preventing stockouts through intelligent stock ordering and management techniques. (O)’s notion that merchandisers play a critical role in managing product flow is aligned with the results of a study by Stoica (2023) that suggest maintaining product flow and consumer satisfaction in retail environments through competent and strategically linked merchandising methods.

Sub-theme 2: Consequences for suppliers: The senior manager participants identified consequences for suppliers, the second sub-theme, as a key repercussion for non-compliance. They claim that non-compliance within merchandising structures focusing on supplier accountability and its impact on their retail standing is a serious consequence for suppliers:

Both (SBM) and (O) depicted that non-compliant suppliers could be charged for their lack of commitment and replaced with substitutes. For example, if suppliers are not meeting obligations, which might result in a loss of store space or forward share. The participants’ responses suggest that having mutually beneficial agreements and open lines of communication is vital for preserving strong supplier-retailer relationships. This is in line with Krisnadewi and Soewarno (2023), who emphasised that comprehending the consequences of non-compliance accentuates the necessity of cultivating strong supplier relationships and adhering to commitments.

This study offers significant practical and managerial implications for the South African retail sector, providing much-needed guidance in developing clear and concise planning strategies for merchandising services. The findings highlight the strategic importance of synergised merchandising structures as vital assets for retailers. The results reflect how these structures are vital for enhancing operational efficiency, reducing operational errors, and effectively managing risks, including supply chain disruptions. As such, retailers are urged to resort to streamlining processes and fostering resource agility as synergised structures assist retailers in maximising service levels and adapting rapidly to changing market demands.

The findings offer actionable insights for retailers and suppliers as managers. For example, implementing a merchandising services solution through existing synergised structures can be cost-effective for multiple suppliers, substantially decreasing operational costs by leveraging shared infrastructure, fostering supplier collaboration and integrating technological improvements. These cost reductions encompass process efficiency, economies of scale and enhanced resource utilisation, ultimately resulting in a more competitive cost structure for merchandising services. Importantly, synergised merchandising structures play a significant role in preventing OOS situations, which is vital for maintaining customer satisfaction, safeguarding revenue streams, and protecting brand reputation. Traditionally, merchandisers fulfil an important role in preventing stockouts through intelligent stock ordering and management techniques. This study also highlights the importance of human capital development and adopting industry-recognised best practices to achieve optimal merchandising service levels which, in turn, improves customer satisfaction and sustained business growth.

To effectively adopt synergised merchandising structures, this study recommends a hybrid approach for an ideal synergised merchandising model, balancing the benefits of shared and integrated services with dedicated support for suppliers with specialised categories and products. This is especially relevant in the South African context, where retailers and suppliers are required to develop structured engagement strategies, including regular meetings to address challenges, scheduled activities and performance measures, aimed at promoting information exchange and fostering a collaborative environment. It is important to note that engaging in training and development initiatives, and ensuring a competent workforce is strategically deployed will directly result in increased productivity gains. Ultimately, the findings of this study provide a comprehensive road map for the South African retail sector towards resource optimisation, cost reduction and upholding high merchandising standards, paving the way for more resilient, customer-focused and technologically smart retail operations.

The study contributes to practice and theory. It adds to the knowledge of the limited literature on the value and adoption of synergised structures in retail merchandising services, especially from a cost synergy perspective, in a market where such adoption is still in its emerging stages (Stoica, 2023). The findings also provide vital guidance for both retailers and suppliers in developing clear and concise planning strategies for enhancing operational efficiency and maximising service levels. Key practical benefits highlighted include the potential for cost optimisation, especially regarding fixed and variable costs, which are extensive in the South African retail sector. This research also highlights how synergised merchandising structures are critical in preventing OOS situations, thereby safeguarding revenue streams, protecting brand reputation, and maintaining high levels of customer satisfaction. The findings also provide actionable recommendations for fostering collaborative learning and information exchange, which are vital for adapting to ever-changing market demands and obtaining a much-needed competitive advantage.

From a theoretical perspective, this study makes an original contribution by carefully investigating synergised merchandising structures within the specific context of a developing economy such as South Africa, which previously lacked empirical data on this topic. This study improves the existing body of knowledge on supplier-retailer relationships, merchandising strategies and inventory management, offering a unique South African perspective that can inform broader global discussions. The study also provides deeper insights into the complex interplay between human capital, industry best practices, and the evolving retail environment, contributing to a more unique theoretical understanding of these phenomena.

Despite the significant findings and insights provided by this study, it has one specific limitation. The qualitative nature of the study also means it mainly captured perceptions, which suggests a need for a quantitative angle to the study to supplement and validate the findings and insights of this study.

Future research could include a comparative analysis of synergised merchandising structures between South Africa and other developed or emerging economies, such as BRICS nations. The focus could also be on the impact of cultural nuances on the adoption and outcomes of these structures or the development of a comprehensive framework for synergised merchandising structures in the retail sector, including best practices, adaptable strategies, as well as key performance indicators.