With a double dip recession and slow economic growth, along with greater emergence of the internet as the consumer channel of choice the retail industry has not had the easiest of times. As a consequence retailers have had to rethink all aspects of their strategy by:
Correct Product Selection - acknowledging tough competition and consumer spend wavering, having the correct product range is a major concern for retailers. Ensuring they’ve picked up on the right trends at the right time is just one element. A retailer’s core line is where the bulk of their return lies, and therefore needs the most care given.
- Pricing - Consumers are more price-aware than ever, checking pricing with competitors whilst both shopping on and offline. Getting the launch pricing wrong on a product line and retailers risk the entire line ending up in the sale category.
- Control of Stock Levels - Having an accurate gauge of demand is critical for retail planners and merchandisers, who ensure the right number of products are in the right stores. Being overly cautious and buying too little can seriously damage a retailer’s sales.
- Consumer Understanding - Internet technology and rise of smart phones influence consumer spending habits. Consumers now demand an omni-channel approach which many established retailers have been slow to react to. Being able to listen to and react upon consumer interest and sentiment is a major pain point for large retailers.
- Understanding new markets - With globalisation and troubled local economies, many retailers have pushed for overseas expansion. Thorough research and understanding of foreign markets is critical for any retailer with expansion plans.
- Battling High Street Rent Increases - Although rental pricing across many UK locations remained static in 2012, recent years have been taxing for retailers, and London still sees prices climbing. Many are now realising that their online presence can be their flagship, generating their largest sales. However, this comes with its own learning curves; offering the consumer an experience similar to a physical store is a challenge facing any e-commerce retailer
Performance and associated talent management initiatives are key elements in tackling the challenges faced. To discover more as to how Certus Solutions can help please contact Mark Sweeny or Mary Thethi on +44 (0) 1483 610220 or email firstname.lastname@example.org / email@example.com or find us by firstname.lastname@example.org