Efficient and effective merchandising is vital to a highly functioning retail operation. Retailers are taking a look at where they stand regarding their merchandising strategies, and many are planning near-term upgrades. Surprisingly for some, underperforming inventory is the top merchandising business challenge for retailers surveyed in the 2010 Retail Systems Research (RSR) Merchandising Benchmark Study, with 56% citing it as their greatest merchandising concern. Out-of-stocks garnered second place in the ranking, at 40% of retailers; and fractured planning process which had previously been No. 1 came in third at 37%.