IT I
n the evolving world of retail, the difference between thriving and merely surviving is increasingly data-driven.
For years, stock selection in merchant environments has been based on experience and intuition. Seasoned retailers pride themselves on understanding their customers, from seasonal surges to regional preferences and local loyalties. But, in today’s hyper- competitive and digitally connected market, relying solely on intuition is no longer sufficient.
The insight gap
Retailers often focus on what they’re selling, but not always on what the data around those sales reveals. For example, a product that appears to be underperforming in isolation might be a frequent add-on to high-value purchases. Another might deliver high volume but low margins, quietly undercutting overall profitability. Without clear visibility into which products drive profit, prompt return visits, or influence customer journeys, merchants risk making suboptimal decisions that dilute their revenue potential. This is where data becomes a competitive differentiator.
Instead of assuming what customers want, forward-thinking merchants are leveraging real- time sales data, customer behaviour insights, and predictive analytics to inform their choices. This shift not only improves revenue but helps reduce waste, optimises inventory turnover, and supports more targeted marketing strategies.
From intuition to strategy Data is increasingly transforming the way merchants plan, stock, and present their products. Integrated point-of-sale (POS) systems and analytics platforms now enable retailers to uncover valuable patterns in customer purchasing behaviour, such as which products are frequently bought together or which combinations tend to increase average basket size.
For example, identifying links between high- ticket items and specific accessories or add-ons can inform smarter product placement and bundling strategies. When high-margin complementary goods are stocked nearby or promoted together, retailers can boost cross-sell performance and increase category profitability without increasing floor space. These aren’t one-off wins either, they reflect a broader shift toward predictive, insight-led merchandising. By analysing which products drive incremental purchases, which lines stagnate, and how different times of day or week affect performance, merchants are moving from reactive stock management to daily, data-informed optimisation.
38 DATA AS A
DIFFERENTIATOR
Keith Johnston, business development director at DART Tool Group tells BMJ how smarter merchants can turn data insight into cold hard cash.
Reduced waste, raised margins One of the most immediate benefits of data- informed merchandising is waste reduction - a priority for an industry under increasing pressure to meet sustainability targets and reduce excess through more efficient practices. Overstocking slow-moving lines like specialist fixings or underestimating demand for core building materials such as cement or timber can be costly. Unsold stock not only ties up capital and valuable yard or warehouse space but also risks obsolescence. By applying demand forecasting tools and analysing historical sales data, builders’ merchants can better anticipate seasonal surges, project-led purchasing patterns, and contractor buying cycles. This allows for smarter ordering, more accurate stock levels, and less reliance on heavy discounting to clear excess inventory, all while supporting broader environmental and commercial goals.
Personalisation at scale Builders’ merchants using CRM systems and customer data tools can track repeat purchase patterns on essential accessories, from blocks and timber, to drill bits and fixings, and therefore tailor stock, promotions, and communications accordingly.
Data could show that roofing contractors regularly purchase roofing nails and accessories
in bulk toward the end of each month, so by aligning stock levels and offering targeted deals around this behaviour, merchants can increase order frequency, drive upsell opportunities, and strengthen customer loyalty through more relevant service.
The real power lies in understanding not just what customers buy, but why and when they buy it. Smart systems can help merchants spot subtle yet important patterns, such as how tool maintenance consumables sell better during quieter build periods, or how certain brands perform better in urban versus rural branches.
The technology to do this is more accessible than ever. From POS-linked analytics dashboards to cloud-based inventory management tools, builders’ merchants of all sizes can now turn everyday sales data into actionable insights. When branch teams are equipped with training and confidence in using data, they can make faster, more profitable decisions grounded in fact and not assumption.
A look ahead
Instinct and experience still matter. But in today’s marketplace, it’s the merchants who combine that knowledge with real-time, evidence-based decision-making that are turning insight into income, and cementing their role as trusted trade partners. BMJ
www.buildersmerchantsjournal.net September 2025
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