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At the End of 2019, a Number of Predictions Were Made About the Retail Industry. A Few Weeks Later, Everything Changed.

McKinsey, Forbes and the like advised that we should build business plans, assign budgets or hire based on supply chain sustainability, payment flexibility, customer-facing tech and the list goes on... 

Yet, as we’ve heard repeatedly, these are unprecedented times. So, we think it’s time to revisit the 2020 Retail trends. 


1. STORES CLOSED? STAY CONNECTED

Before COVID-19, communication and engagement software, employee self-service capabilities and a mobile-first approach were considered “nice to have.” Now, in a global market fraught with uncertainty and with a workforce concerned about their future, it has never been more critical to stay connected. 

It’s about more than sending out the occasional newsletter or hosting an annual All-Hands meeting though. It's about thoughtful, people-first communication. It’s about sending urgent updates via push notifications, monitoring employee engagement via single-question surveys, sending rewards or badges and maintaining a sense of community using a medium that’s convenient, easy to use and familiar to your workforce. 

This can make a significant and immediate impact too. A recent Gallup study found that connected companies (i.e. ones with high employee engagement) are 21% more profitable, 17% more productive and have 40% less staff turnover. 

As stores reopen and employees return to work - or if rolling isolations occur - communication and engagement will take on an even more critical role. This is therefore an opportune time to consider: 

  • Defining your communication strategy and making it visible within your organisation 
  • Developing a communication plan for your entire workforce 
  • Establishing employee support procedures 
  • Communicating what you are doing to the outside world 


2. THE AI HYPE IS REAL 

Most retailers, despite having an abundance of data, are not getting any value out of it.  They either don’t have access to what they collect, or they don’t understand it.  

They must make sense of the available data and put it to good use, to keep up with changing consumer buying habits and employee demands and to be successful. This is why, according to research from REPL Group, 40% of CIOs and CTOs in the Retail sector agree that retailers should be investing in AI.


3. TASK MANAGEMENT IS ALL ABOUT COMPLIANCE 

In response to government restrictions, essential businesses have added new opening procedures and hours, and also redesigned stores by putting up protective screens at checkout and installing new signage at shelf or on the floor. 

As additional measures are taken and non-essential businesses reopen, all retailers must ensure compliance. In short, the task list pinned to the corkboard is no longer sufficient. 

Tristan Rogers, CEO at Concrete, said “It's about audibility and accountability. If brands with hundreds of stores need to deliver time-critical directives, it’s imperative that they can quickly identify who has done what and when, and also prove that they acted promptly and diligently.” 

In order to respond immediately, protect the safety of hardworking employees and calm potentially anxious customers, retailers should consider the following benefits of implementing Task Management: 

  • Access to tasks via employees’ mobile device or in store tablet  
  • Create/assign tasks locally or centrally for increased control and visibility 
  • Assign tasks (with instructions) to individuals or teams to ensure allocation and accountability 
  • Confirm task completion with comments, images or video 
  • Support any Space or Queue Management initiatives 


4. STREAMLINING BUSINESSES

It should come as no surprise, but many business owners are focused on taking cost cutting measures in an effort to avoid administration or ensure survival. Business streamlining does not, however, mean you must decrease headcount in order to increase productivity and increase employee retention post-crisis: 

  • Evaluate spending and cut costs in areas that do not have a direct impact on the business 
  • Reduce hours and/or restrict overtime for non-exempt employees 
  • Participate in a job retention scheme and provide unemployment benefits  


5. DIGITAL AND PHYSICAL TRANSFORMATION IN FULL SWING

China is paving the way for digital and physical transformation in Retail, e.g. livestreaming as a sales medium, mini programmes, consumer-to-manufacturer (C2M) and faster parcel delivery.

Retailers outside of China, however, are significantly further behind and questioning whether or not their employees - or even customers - are ready for such change. Getting up to speed would not only mean altering business models but implementing new processes and technologies causing many to wonder if they can transform quickly enough.  

It's not about replicating China’s model though, but instead localising it to your market and taking measures, like those listed below, to drive efficiencies and productivity: 

  • Pool resources, not just stock, in order to offer employees additional hours/pay, transfer learnt skills and improve customer service 
  • Transform stores into experience centres, making it even more important to recruit and retain qualified staff, upskill them and schedule shifts based on skills 
  • Use employee self-service to provide one-on-one interaction with your staff, move clocking out of the breakroom and into employees’ hands, handle shift swapping and improve absence management 
  • Use stores as distribution centres or hubs and/or create dark stores in order to offer delivery or Click & Collect services 
  • Add or ramp up online services and home delivery in response to a permanent shift in consumer behaviour due to social distancing 
  • Safely reduce customer-employee interaction with frictionless commerce, e.g. cashless and contactless payments, self checkouts and till free stores 


SHAUNA MANEY
+44 (0)7756 930 106
shauna.maney@quinyx.com
https://www.linkedin.com/in/shaunamaney/

To find out more about Quinyx and the services they provide to the retail industry, click here.

This article was originally published in The Retailer, our quarterly online magazine providing thought-leading insights from BRC experts and Associate Members.