By Matt Hopkins, Head of Global Retail Solutions Marketing at intelligent planning solutions leader Board.
The Amazonification of retail has caused us to expect things on our doorstep with the click of a button. Lots of e-commerce vendors have reacted with cat-like precision, using merchandise and planning software to streamline the website-to-door process.
However, the evolution of tech is putting retail roadblocks in the way of those retailers – big and small – who still operate out of bricks and mortar outlets.
For example, social media is making on-the-spot shopping open to users everywhere, and has some of the most effective advertising available today. And if you’re an online-only business, you’re immune to the nomadic consumer habits born from hybrid and remote working.
Equally, with the rent and mortgage crises putting pressure on many shopping hubs, storefronts are becoming increasingly expensive. It’s easy to see why a company might be tempted to abandon those costs required to maintain store premises and sales staff by focusing efforts on e-commerce and the digital shopping business.
But what really tips the scale in the direction of e-commerce are the integrated platforms that allow all retail functions to exist in one space. The smooth purchase process from adding items to the basket to saving a wishlist is not only appealing to the consumer, but it allows retailers to record buying habits and trends in real time. Drawing insights from these patterns eases decision-making and planning.
But it’s not all doom and gloom and there’s no reason retailers can’t benefit from both face-to-face and digital customers. Here are three tips retailers can follow to do just that:
#1: Ditching outdated tools to improve planning
Implementing massive digital transformation projects can seem daunting and this fear often leads companies to, understandably, do nothing at all.
According to the The Beating Heart of Digital Transformation study, around 70% of retailers are still using spreadsheets as a core tool for financial planning and analysis (FP&A) activities. Spreadsheets cause companies to lose precious time and effort on endless administrative tasks and updates. Constantly updating old documents is not only a waste of resources, but it leaves little capacity left for predictive strategy.
Furthermore, spreadsheets can only point to some trends at a low-level of analysis. They can’t predict outliers that will massively sway a datapoint using industry data, nor provide an early look into how a company can adapt to mitigate a crisis.
Intelligent FP&A tech exists for teams to work in collaboration at all stages of their buying and sales processes. It takes a lot of the heavy lifting out of the digital process by easing warehouse, inventory and floor management. Financial planning is a pillar of retail functions that should be in one, cohesive system underpinning a company’s workflow.
#2: Top to bottom, retail functions are seeing digital transformation
All retail functions now have a place in the digital world. Big retailers are leading the charge by spending more on allocation and replenishment; category management; assortment planning; marketing planning; pricing, promotions, and markdowns; and strategic/financial planning.
These functions are what underpin a successful retail business. And in order for companies to evolve with the rise of online shopping and bear the brunt of the economic winter ahead, they need to automate and integrate.
#3: Trust the experts
Many retail gurus have agreed on the need for automation – or at least on ditching spreadsheets. One key point is that merchandise financial planning has been long ignored, and we’ve come to a pivotal moment of investing in the right products and eliminating waste.
They also agree an integrated solution will allow multiple teams to participate and provide their share of knowledge. The more granular a company can get into their forecasting with a collaborative workspace, the better their decision-making will be.
Being competitive with e-commerce retailers goes beyond putting up a flashy website, but begins with the nitty-gritty planning that finds trends to jump on and underpins a company’s entire retail success.
Jesse Pitts has been with the Global Banking & Finance Review since 2016, serving in various capacities, including Graphic Designer, Content Publisher, and Editorial Assistant. As the sole graphic designer for the company, Jesse plays a crucial role in shaping the visual identity of Global Banking & Finance Review. Additionally, Jesse manages the publishing of content across multiple platforms, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune.