Latest retail management news:
For stores today, omni-channel retailing is no longer a lofty goal. Emerging technology and mainstream mobile devices are making the seamless integration between online and physical stores not only a reality, but a requirement.
A recent article on The Guardian website highlights this trend. Technologies like radio-frequency identification (RFID) and near field communication (NFC), along with the rising use of smartphones and tablets, is making omni-channel retailing more achievable and important than ever before.
And yet many retailers still aren’t ready. They don’t have the right infrastructure. In fact, many still have mainframes. How can you take advantage of these new technologies with an aging architecture? It’s all about the flow of information. It’s one thing to have all of this data, but what are you going to do with it?
Retailers need a flexible, extensible environment to leverage these advances in technology. The good news is that a lot of these technologies are cheaper than they once were. Sure, retailers might have to bite the bullet and throw out their old infrastructure, but it will be worthwhile in the long run.
The article takes a look at how other retailers are moving ahead. For example, one national U.S. retail chain plans to have RFID in all of its locations this year. Customers will be able to purchase items at self-serve stations and through their mobile devices, cutting costs for checkout transactions.
It’s just one example of how retailers are making changes to “enhance the retail formula.” Retailers must provide convenient ways for customers get store information and share their shopping experience. It’s a lot like “the good parts of e-commerce, with all the fun and tactile richness of real life thrown in,” the article notes.
If omni-channel retailing is your goal, The Guardian article recommends three ways to make it happen.
- Spread digital operations across the organization: Too often, the digital operations work in “silos.” This prevents retail or other departments from taking full advantage of omni-channel retailing opportunities.
- Invest in technology: Some retailers have held off on implementing more digital capabilities due to high implementation costs. But the costs are dropping rapidly.
- Explore opportunities today: Keeping up and preparing for digital developments requires a long-term plan. Start planning today. Retailers should explore what they can do now to connect with their customers via multiple channels.
Source: The Guardian, February 2013
Companies can boost their productivity and their bottom line by taking a lesson from Atul Gawande’s book, “The Checklist Manifesto.” Gawande followed critical-care specialist Dr. Peter Pronovost and found that the use of a simple checklist dramatically decreased line infections and significantly improved patient care. This checklist principle can be easily applied to any industry.
Smartphones are the next big thing for retailers as self-checkout fades away. Retailers are looking to a mixture of radio frequency identification, mobile POS technology and near-field communication to allow employees to look up inventory, complete sales and allow stores to directly market to consumers based on the items in their cart.
San Antonio-based supermarket chain is jumping on the “green” bandwagon with plans to build its most sustainable store in Austin, Texas. The new store would be a test bed for expanded recycling and reduction of energy and water use. While it’s good for the environment, customers won’t see any savings, an Avanade retail expert said.
After Hurricane Irene passed with relatively little damage, there was one area that still needed to be dealt with — annoyed customers looking at piles of leftover storm supplies. Hurricane Irene exposed the new thriftiness Americans have adopted during the economic downturn, while stores dealt with supply chain issues as people returned unwanted items, an Avanade expert said.
After home delivery of groceries flopped, grocers are testing a new idea — online grocery shopping with curbside pickup. There are five groups that love the new service: people with children at home, older baby boomers, shut-ins and the disabled, people looking for a diet or budget tool and surprise users like office workers ordering sandwiches.
Roger Simmermaker is a walking advertisement to “Buy American” from his New Balance running shoes to his Lincoln Town Car. But while championing American-made products is a great thought, it’s important to remember that America is a melting pot of cultures and we’re primarily driven to buy what’s cheap, an Avanade expert said.
Retailers can’t say goodbye to summer fast enough as they push forward into the holiday sales season. Hobbled by a struggling economy, a gyrating stock market and diminished consumer confidence, retailers are anxious to get shoppers spending. But that won’t happen, an Avanade expert says, as retailers have trained shoppers to wait for big markdowns in December.
Spend $1 in goods made in China, and you contribute 55 cents to American businesses. That’s according to a new study from the Federal Reserve Bank of San Francisco, which shows that businesses providing marketing, sales and other services benefit from purchases of China-made items.
Before getting rid of their self-checkout, grocery stores should consider this: Consumers love them. They also want an easy-to-use website; kiosks with product information, coupons and recipes; electronic offers sent via email or mobile device, and wireless access within the store.
Nearly 40 percent of tablet owners say they’ll use their device for back-to-college shopping, and almost one out of five will use their smartphones. This trend will only grow as more shoppers use their tablets and smartphones to comparison shop, an Avanade expert said.
Seventy percent of customers say they will curtail their back-to-school shopping this fall, leaving retailers to find other ways to continue attracting customers. That could include promotions and – get this – price increases as retailers pass on higher product costs.
