Retail Analysis
Retail 2022: Why stock visibility will be key to success
Dean Frew, CTO and SVP of RFID Solutions at SML Group discusses the impact of COVID on the retail sector, digital transformation, lack of stock visibility and maintaining both ecommerce and physical store presence.
T
he retail industry has faced many challenges over the past decade, but they were
accentuated like never before during the last two years. COVID-19 and its following global lockdowns forced the retail industry to face the task of pivoting to omnichannel and store pickup offerings in order to preserve their customer base and continue driving revenue throughout the pandemic. The trials associated with the execution of omnichannel sales quickly came into focus as retailers came to the realisation that consumer shopping patterns have been permanently altered and they must adapt in order to remain relevant and profitable moving forward. Keen to understand the ramifications that the pandemic had on the
retail industry, SML RFID recently undertook global market research, analysing responses from over 500 apparel retail executives and decision-makers across the US and UK. Each respondent provided insight into the sector’s current sentiment to growth and the perceived challenges that retailers anticipate moving forward. The report discusses the impact of COVID-19 on the retail sector, specifically highlighting the pivotal role of digital transformation in the post– pandemic market. In addition, it highlights the potential concerns surrounding technology implementation in stores, issues associated with a depleted workforce, and the need to find balance between online and in-store sales channels.
6 | May 2022 Even before the pandemic, much of
the retail landscape was desperate for essential digital transformation and technological innovation to address perpetual areas of concern. SML’s research highlights areas such as the lack of stock visibility, ongoing labour shortages, balancing offline and in- store demand, and concerns around technological advancement as the most prominent current issues within retail.
Stock Visibility Issues SML’s report found that 48% of UK
and US retail decision-makers state that out of stock items is the primary challenge for retailers in the current climate. While a short- term fix of revamping online channels allowed retailers to stay afloat during the pandemic, the research shows that issues in back-end processes still remain. The long-term implication of frequently out of stock items is the deterioration of customer loyalty and the risk that a customer may decide not to return to a certain retailer because of unreliability. SML also found that nearly a quarter (24%) of respondents see an
unclear view of inventory as their biggest concern when serving customers, with 21% also claiming that it takes too long to locate items in-store. Having a clearer view of current inventory and products that are waiting in the supply chain will enable retailers to ensure they have the right items when their customers want them. Providing excellent
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