GNFR: The 2026 Guide for Retailers

If you’re a retailer, you’re probably spending a shocking amount of money on things your customers never actually buy…fixtures, packaging, cleaning, IT, marketing materials, logistics services, and more.

That entire universe rolls up into one quiet but powerful acronym: GNFR – Goods Not for Resale.

Managed well, GNFR can protect your margins, speed up store openings, and elevate customer experience. Managed poorly, it silently erodes profit and creates chaos in store rollouts.

This guide breaks down what GNFR is, why it matters, how much retailers typically spend, what’s changing by 2026, and how to build a GNFR strategy that actually works.

What is GNFR in retail?

GNFR (Goods Not for Resale) refers to all the goods and services a retailer buys that are not sold directly to customers. It’s often called indirect spend, indirect procurement, non-merchandise spend, or non-stock purchases.

In simple terms:

If it keeps the store running but never ends up in a shopper’s basket, it’s probably GNFR.

Common examples include:

Store environment & fixtures: Shelving, racks, gondolas, signage, fitting room hardware, shopping carts, baskets
Operations & logistics: Pallets, totes, packaging, shrink wrap, labels, handheld scanners, warehouse services, freight and fixture consolidation
IT & digital: POS systems, tablets, kiosks, Wi-Fi, software licenses, security systems
Marketing & experience: In-store displays, window props, promotional materials, digital screens, print campaigns
Facilities & services: Cleaning services, maintenance, energy, HVAC, waste and recycling, security
People & support: Uniforms, training, HR services, professional services, consulting

GNFR is not an optional category, it’s the infrastructure your retail brand runs on.

Key GNFR statistics retailers should know

Retailers often underestimate just how big GNFR really is. Industry research paints a different picture:

GNFR can account for 20–30% of a retailer’s operational expenses.
In some retail and CPG businesses, GNFR can make up to 20–25% of total costs or revenue.
One survey found that over half of companies pursuing GNFR initiatives reported a 3–5% improvement in profit.
KPMG data cited in procurement research shows GNFR (indirect spend) can represent 8–14% of a retailer’s total cost base, and is often under-managed compared to merchandise.

The takeaway: even small percentage improvements in GNFR can have an outsized impact on profitability.

Why GNFR matters so much to retailers

It directly shapes customer experience

Clean stores, clear signage, working tech, and smooth checkouts are all GNFR-enabled.
Poorly managed GNFR shows up as broken fixtures, stockroom chaos, long lines, and inconsistent experiences across stores.

It can quietly destroy (or protect) margin

Because GNFR is fragmented across categories and vendors, it’s easy for costs to balloon:

Duplicate suppliers
Unstandardized specs
Rush fees and premium freight
Poorly negotiated contracts

Multiple studies show GNFR is a major lever for cost savings and profit improvement when treated strategically rather than as “just overhead.”

It’s critical to store openings and remodels

New store, remodel, or seasonal reset? Every fixture, graphic, kiosk, and backroom accessory is GNFR.

If GNFR isn’t timed and coordinated-especially across dozens of vendors-you get:

Delayed openings
Out-of-sequence deliveries
Installers waiting on missing components
Higher logistics costs and re-deliveries

That’s why many retailers now treat GNFR logistics (including fixture consolidation) as a core workstream for major programs, not an afterthought.

Typical GNFR categories in retail

You can adapt this list into an internal GNFR taxonomy or RFP scope.

Store & visual merchandising: Fixtures, shelving, mannequins, décor, window props, signage, price labels
Packaging & consumables: Shopping bags, boxes, tissue, labels, tags, tickets, hangers, till rolls
Operations & logistics: Pallets, totes, warehouse consumables, inbound and outbound freight for GNFR, consolidation services
IT & tech: POS, payment terminals, scanners, printers, kiosks, store Wi-Fi, software
Facilities & utilities: Cleaning, janitorial supplies, maintenance, HVAC, energy, waste and recycling
Marketing & media: Print materials, in-store media, OOH displays, local marketing campaigns
People & professional services: Uniforms, training, audits, consulting, security, temp labor

What retailers should expect from GNFR by 2026

Retail and procurement are shifting fast. Here’s what GNFR will look like as we approach 2026.

More digital and AI-driven procurement

Analysts estimate the retail sourcing and procurement software market was already in the multi-billion-dollar range by 2024 and is expected to grow at high single- to mid-teens CAGR through 2030, driven by cloud, data, and automation.

By 2026, expect:

Wider use of e-sourcing tools, e-auctions, and guided buying
AI-assisted demand forecasting for GNFR categories (e.g., packaging, fixtures)
Better spend analytics connecting GNFR to store performance metrics

Greater pressure on cost and working capital

With persistent margin pressure and cautious consumer spending, retailers will:

Push for category consolidation (fewer, more strategic GNFR suppliers)
Tighten payment terms and inventory levels for GNFR
Use should-cost models and benchmarking more aggressively in RFPs

Sustainability and compliance baked into GNFR

Sustainability and ESG requirements won’t just apply to merchandise:

More recycled and recyclable packaging
Lower-emission materials and logistics
Supplier requirements around labor, ethical sourcing, and emissions reporting

GNFR categories like fixtures, signage, packaging, and waste management will see stricter criteria and more data requirements.

Integrated GNFR + logistics strategies

Rather than treating procurement and logistics separately, retailers are:

Planning GNFR sourcing and transportation together
Using consolidation centers to bring multi-vendor GNFR into a single, sequenced shipment for each store
Tracking on-time, in-full GNFR delivery as a KPI, not just cost per unit
By 2026, the retailers who win will be the ones who treat GNFR as a synchronized flow, not a series of one-off purchases.

How retailers can build a GNFR strategy for 2026

Define your GNFR universe and owners

Build a GNFR category map: list all spend that is non-resale by function (store ops, IT, marketing, logistics, facilities, etc.).
Clarify who owns what: procurement, finance, store ops, supply chain.
Identify protected or exempt areas (IT, marketing, logistics often sit outside formal procurement) and bring them into a light governance model.

Quantify the opportunity

Calculate GNFR as % of total costs/operating expenses.
Rank categories by:
- Annual spend
- Fragmentation (number of suppliers)
- Risk to operations (store openings, customer experience, compliance)
Use benchmarks and external research (8–25%+ of costs in many retailers) to build a rough savings and profit-lift range.

Standardize specs and sourcing

Create standard specs for fixtures, packaging, signage, and consumables.
Move from one-off store or region decisions to enterprise-wide contracts.
Run competitive events (e-auctions, RFPs) for high-spend GNFR categories.

Connect GNFR to store programs and logistics

For new stores, remodels, or seasonal campaigns:
- Plan GNFR requirements with the rollout calendar
- Use fixture/GNFR consolidation so each store receives a sequenced, ready-to-install load
- Track milestones like “all GNFR on-site 5–7 days before install”

This alone reduces emergency freight, re-deliveries, and opening delays.

Use data and analytics, not just cost-cutting

Modern GNFR leaders don’t just chase low unit costs, they:

Analyze store-level usage and performance
Track supplier performance (OTIF, quality, defect rates)
Use dashboards that connect GNFR choices to sales, NPS, and shrink

Build a governance and continuous improvement loop

Quarterly or biannual GNFR reviews by category
Playbooks for:
- New store GNFR
- Seasonal campaigns
- Vendor onboarding/offboarding
Clear roles for procurement, supply chain, and store operations

GNFR frequently asked questions

What does GNFR stand for in retail?

GNFR stands for “Goods Not for Resale.” It covers all products and services a retailer buys that are not sold to customers, like fixtures, packaging, cleaning, IT, and logistics services.

How is GNFR different from GFR or merchandise?

GFR (Goods for Resale) = inventory you sell to customers.
GNFR (Goods Not for Resale) = everything that supports the store and brand experience but is never sold directly to shoppers, such as fixtures, signs, uniforms, and services.

How much do retailers typically spend on GNFR?

Various studies put GNFR at roughly:

8–14% of a retailer’s total cost base in some models
Up to 20–25% of total costs or revenue in others
Around 20–30% of operational expenses for many retailers

Even small percentage gains here can materially boost profitability.

Why is GNFR so important to profit?

Because GNFR is large, fragmented, and historically under-managed, retailers that:

Standardize categories
Consolidate suppliers
Use data and strategic sourcing

often report 3–5% profit improvement from GNFR programs alone.

What are examples of GNFR in a store?

Typical GNFR items in a retail store include:

Shelving, racks, mannequins, signage
Shopping baskets and trolleys
Labels, tickets, price guns, hangers, bags
POS terminals, scanners, Wi-Fi
Cleaning and maintenance services
Security, waste, energy, and uniforms

How can retailers reduce GNFR costs without hurting experience?

Standardize specs and suppliers
Use competitive sourcing events (RFPs, e-auctions)
Link GNFR planning to store programs and logistics
Track supplier performance and total cost (including freight, waste, and delays)

What’s changing in GNFR by 2026?