Retail Analysis
customer service is essential to forming brand loyalty but nothing deters consumers more than when a retailer’s stated inventory doesn’t match a customer’s actual experience and a wasted trip to the store or a cancelled order is the result. The industry may be in a recovery
phase two years out from the onset of the pandemic, but retail is still facing well-known hurdles. Inventory issues continue to prove a challenge for retail leaders. One third (33%) of respondents found that their inventory accuracy is not sufficiently accurate. To address this, many are attempting to improve their inventory accuracy levels by carrying out manual stock takes. According to the data, retailers spend on average 10.9 hours per week searching for inventory with - some even stating that they take up to an additional 36 hours per week taking stock. While the benefits of having a better view of inventory are apparent, the process of associates taking manual stock takes - and spending a significant amount of time on them - is not sustainable. Associates would ideally be driving sales and service in a customer-facing role instead of performing manual inventory related tasks and this has never been more critical than in today’s environment of reduced store staff sizes and a challenging labour market. With workers spending more time on non-customer facing tasks,
this takes away from their ability to provide customers with the personalised experience they demand in modern retail. By implementing item-level RFID, retailers can remove the need to manually take stock and automate the entire process. Using the technology they can achieve an inventory accuracy of up to 98% within a matter of minutes. This saves retailers the time spent taking stock and instead enables them to dedicate that regained time to providing a better customer experience and differentiating themselves from competition.
Technology Implementation Concerns Throughout the pandemic retailers have had to utilise their omnichannel offerings. Buy Online Pick Up in Store (BOPIS) has cemented itself as a core solution to navigate what has been a highly challenging period. The need for an effective and consistent omnichannel operational strategy is clear. However, retailers see several challenges when it comes to implementing an omnichannel sales strategy. Almost one third (29%) of respondents said that meeting customer expectations would be the most significant pain point in implementing an omnichannel strategy, with effective software (23%) and having an accurate view of inventory (15%) also posing significant challenges to retailers. Previously, having an omnichannel offering was seen as a “nice to have” but over the past few years - particularly during the pandemic - it has now established itself as an integral sales channel. Retailers appear to feel as though the implementation of technology
can majorly disrupt ongoing business operations. During such a crucial time, retailers are unlikely to want to miss out on any potential revenue. The deployment of new solutions needs to be seamless to
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avoid compromising existing sales channels and alienating current customers. However, the long-term benefits will generate exponential sales opportunities for retailers who invest in their technology offerings. Of course, once implemented,
internal processes can be streamlined, and long-term cost efficiencies can be enabled. However, retailers are still hesitant to justify potential returns on investment at a critical stage of recovery. For those retailers that don’t currently offer an omnichannel solution, almost a quarter (24%)
believe that it is too expensive, and 22% feel it is too complicated. The reality is that consumer demand is defining the technological roadmap for retailers and quickly shifting consumer behaviour in the current environment means that retailers must initiate steps now to remain relevant in order to protect and grow sales. While many focus on the challenges of investing in omnichannel,
most do at least recognise the problems that an effective omnichannel strategy can solve. When asked how retailers think they could better serve their customers, nearly half (43%) of respondents answered that having real-time visibility over stock levels would help their business, with 38% acknowledging that they would benefit from investing in technology that enables a clearer view of inventory. Combining both online and in-store practice is the ideal solution.
Retail Bouncing Back The retail sector finds itself in an extremely delicate position. Retailers understand the benefits of an omnichannel solution and innovative technology. However, concerns surrounding the initial implementation can cause ‘paralysis by analysis’ as retailers attempt to work through solution options to find a way forward. With a depleted workforce, retailers need to streamline their inventory management, freeing up staff ’s time to offer enhanced customer service. Item-level RFID technology facilitates ease-of-use and efficiency in both channels. Retailers can remain agile and offer more options to an ever-changing consumer landscape, ensuring long-term business sustainability and success. Driven by technology such as item-level RFID, retailers that had
implemented the technology and solutions were able to recover and strive forward rapidly compared to competitors that had not adopted the technology. Retailers that fail to address their underlying inventory discrepancies and their impact on omnichannel selling will face the prospect of falling further behind one cancelled order and disappointed customer at a time. While the past two years have been challenging, there have been
critical lessons learned that can be leveraged for future growth and profitability. Sentiments around the prospect of growth are high, and retailers have identified pre-pandemic processes that can be adapted and refined to better align with a true omnichannel vision that allows each unique channel to drive customer engagement. Accurate real- time inventory visibility is the foundation for omnichannel selling and an enhanced customer experience on the journey forward.
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