Top 10 Retail Store Operations Trends for 2021 - Zebra ...
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TABLE OF CONTENTS Introduction, page 2 TOP 10 TRENDS 1 Increased Focus on Simplifying Operations 2 Investment in Robust BOPIS and Curbside Pickup Processes 3 Forecasting and Scheduling Labor for Uncertainty 4 Improve Store Communication and Response to Disruption 5 Virtual Appointment Booking 6 Interest in Touch-Free Tech 7 Convenient and Speedy Returns 8 Catering to Employee Expectations 9 Renewed Focus on Safety 10 The Rise of Dark Stores 1
Through the years, retail has been defined by disruption. Increased sales from e-commerce have forced brick-and-mortar retailers to differentiate themselves with unique in-store experiences. The ubiquitous use of smartphones has changed the habits and the desires of retail customers. The reduced spending power of the middle class has shifted in-store buying patterns of younger generations. While the overwhelming retail response has been to innovate and reimagine how stores function, how quickly and to what extent retailers should innovate was an open question. That all changed in 2020. COVID-19 has resulted in a radical shift for the retail industry, exposing every weakness that retailers have. Inefficient communications may have been frustrating in normal times, but now they could be catastrophic if critical safety information can’t be communicated successfully. Testing the waters in curbside pickup may have been an interesting experiment before COVID-19, but now efficient curbside pickup is the difference between meeting sales goals and lagging far behind. 2021 is certainly going to be a different year and is already shaping up to be full of change. The pandemic still rages across the country, with new cases still extremely high and many concerned about new, more transmissible, COVID-19 variants. But with the vaccine being rolled out across the country, and wide availability to the general public coming by late spring or summer, the end of 2021 will likely look very different than the beginning. But that doesn’t mean that things will go back to the way they were. Curbside pickup and other alternative shopping options will still be popular. Customers will still be concerned about safety and an economy that hasn’t fully recovered. The pandemic has exacerbated trends that we’ve seen steadily moving forward for years, and coming out of the pandemic won’t reverse much of the change that has happened. So how will retailers address these store operations challenges? We’ve compiled what we see as the top 10 store operations trends of 2021, as well as strategies and ideas retailers can use to achieve success during another turbulent year. 2
Increased Focus on Simplifying Operations If the pandemic has taught retailers one major lesson This continued focus on simplicity will be essential to about their store operations, it’s that convoluted managing further disruption down the line. Streamlining processes aren’t sustainable under the strain of labor forecasting and scheduling processes with AI-driven disruption. This is why retailers that were considering workforce management will help retailers optimize labor digital transformation initiatives are beginning to invest spend and ensure compliance with changing regulations. more heavily in them. Considering the inevitable strain Improving communication and store execution with real- that e-commerce and other pressures will place on brick- time task management will help store associates simplify and-mortar retailers, 2021 will certainly bring a continued work while providing corporate and field management focus on digital transformation, where retailers continue with real-time visibility into task status and completion. to simplify standard store operations processes with innovative technology. Investment in Robust BOPIS and Curbside Pickup Processes The pandemic brought about a shift towards utilizing retail leaders and laggards in 2021. Streamlining omnichannel services, especially buy online pick-up these services with real-time task management, in-store (BOPIS) and curbside pickup, as alternatives where real-time alerts can notify employees when to in-store shopping. With 85% of customers to collect and deliver orders, is essential to ensuring increasing the rate at which they used curbside that they run smoothly and without delay. Real-time pickup, this is a massive shift, one that looks to be task management also ensures that any tasks related sticking around for the foreseeable future. to BOPIS and curbside pickup are sent to store Quick and effective BOPIS and curbside pickup associates’ mobile devices in real time, and that they processes will certainly be a dividing line between are prioritized accordingly. 3
Forecasting and Scheduling Labor for Uncertainty COVID-19 has shown just how dangerous outdated labor Some retailers have used intelligent labor forecasting forecasting and scheduling processes can be. Historical and scheduling solutions to account for variables created data that would otherwise prove useful in normal times by pandemic disruption, helping them create best-fit couldn’t adequately forecast sales performance and forecasting models to adapt to unforeseen changes labor needs during fluctuations in pandemic severity or in customer traffic, product demand, and pandemic implementation of local COVID-19 regulations. This has severity. These solutions will continue to prove useful as made it impossible to properly staff retail stores, which we address the pandemic in 2021, since retailers will still means that critical in-store tasks, some related to safety, need to respond to rapid changes in customer demand, might not be addressed by understaffed stores. differences between stores in diverse geographic locations, and other unforeseen shifts. Improve Store Communication and Response to Disruption Quick and effective communication was a critical part and will continue to be an important investment in of any retailer’s pandemic strategy in 2020. Without 2021. These solutions enabled retailers to create efficient and simple communication, retailers were precise distribution groups for corporate updates, unable to efficiently send critical safety information organize messages with tags and categories for across the organization, implement new pandemic- quick reference, and utilize custom templates for related initiatives throughout all stores, or manage recurring messages. As retailers continue to invest in any crises that came up unexpectedly at stores. real-time communication in 2021, they’ll find it easier Real-time communication solutions were essential to to disseminate updated safety information and streamlining store operations during the pandemic, implement new safety-related initiatives. 4
Virtual Appointment Booking As retailers shifted towards curbside pickup, BOPIS, and Appointment booking solutions offered a way for retailers changes to in-store shopping, many retailers utilized to manage these new processes more easily. These virtual appointment booking, giving customers the solutions gave customers the ability to book online while opportunity to schedule curbside pickup, book time also interfacing with workforce management to precisely slots to shop in-store, and join on-site virtual queues to align staffing with appointment volume. These solutions avoid standing in lines. This ensured that customers who will still be valuable in 2021, since many customers, wanted to avoid the risk associated with shopping in both during the pandemic and after it resolves, will stores were able to do so without major inconvenience. continue to take advantage of curbside pickup and other nontraditional shopping methods. Interest in Touch-Free Tech Keeping employees safe will continue to be Many retailers have found ways to reduce device essential as we address the pandemic in 2021. In sharing through touchless time clocks and mobile 2020, many store associates were anxious about employee self-service applications. These have customers ignoring social distance regulations, done more than simply reduce risk of illness; they’ve as well as exposure through their colleagues. also streamlined processes such as requesting time- Sharing devices, whether they were in-store kiosks, off, checking timecard or schedules, or clocking in time clocks, or other mobile devices, presented a and out of work. Emphasizing simplicity in employee constant risk to employee health, depressing their self-service and time and attendance procedures morale and overall productivity. will continue to play a large role in 2021, as retailers search for functional areas they can simplify with retail technology. 4 5
Convenient and Speedy Returns Customers in 2020 quickly became frustrated with long, In 2021, customers will still expect to make returns without drawn-out processes at stores, whether it was standing having to wait in long lines, and they’ll expect store in line at checkout or waiting to get into the store. This is associates to handle their returns quickly and without clearly the case for the returns process as well. Inefficient error. Real-time task management gives store associates returns processes don’t just impact customers; a majority the information they need to rapidly process returns, of store associates feel greatly challenged by the extra ensuring that all returned items are correctly routed to work associated with managing returns. Many might not their proper destination. These solutions also provide real- understand returns policy changes brought about by time alerts when returns need to be processed, ensuring COVID-19, such as a list of items that cannot be returned, that there are always the right number of associates at the and might make more mistakes as a result. returns desk to handle projected volume. Catering to Employee Expectations Retail employees have seen their worlds overturned vaccinated, retail employees are still struggling to as a result of the pandemic. Many have had to manage both work and at-home responsibilities. manage increased child care responsibilities or had Intelligent labor scheduling solutions are going to to care for elderly relatives who can’t risk exposure be critical to providing the flexible schedules that to the virus. Flexible schedules and employee store associates need, including the flexibility to self-service has been critical to ensuring that store pick-up open shifts at other nearby stores. These associates today have the ability to manage an solutions ensure that all variables critical to aligning adequate work/life balance. labor with in-store workload are accounted for, such This isn’t likely to change anytime soon. With many as employee availability and preference, service schools still holding remote or hybrid learning, and customer engagement targets, customer traffic and with many elderly people still waiting to get and demand, and weather events and local trends. 6
Renewed Focus on Safety Even through the end of the pandemic, there will still effectively in order to reduce risk to customers and be many questions about how to keep both customers employees. Real-time task management will be essential and employees safe. Should everyone continue to social for managing these changes. With this technology, distance? Should everyone continue to wear a mask? employees can receive real-time alerts if they have Health guidelines will certainly continue to shift as experts to complete critical safety-related tasks, and can get learn more about how the vaccines affect both people immediate feedback from store managers if they and emerging variants of the coronavirus. complete safety-related tasks incorrectly. This will ensure 2021 will be another year of not only adapting quickly that stores can effectively carry out all necessary tasks as to changing circumstances, but doing so quickly and new health guidelines are introduced. The Rise of Dark Stores With the shift towards e-commerce fulfillment that has accompanied be collected and the pandemic, many retailers, particularly in grocery, have packaged. experimented utilizing dark stores to capitalize on e-commerce sales. In 2021, the retail These locations are being used both to cater to curbside pickup industry may orders and as a hub for delivery orders. continue to face The expectation around e-commerce has always been that it will the fallout of continue to eat up a larger share of all retail sales. The pandemic the COVID-19 has only accelerated this trend, making investments in streamlining pandemic, but store operations at dark stores even more important. Retail solutions that’s not cause for that offer real-time alerts and actionable next steps are critical to pessimism. Whether it’s improving communication, optimizing labor accomplishing this. Real-time alerts can be used to notify store forecasting, or providing employees with cutting-edge technology, associates when curbside pickup orders are ready for fulfillment, investing in your retail store operations can help you drive success and can notify warehouse employees when delivery orders need to and face these challenges head on. 4 7
About Reflexis Systems, Inc. The Reflexis cloud-based Real-Time Store Operations Platform helps retailers: Simplify Improve Optimize store operations. store execution. labor spend. Reflexis, now part of Zebra Technologies, is the leading Today, over 275 leaders in retail, food service, hospitality, provider of intelligent workforce management, execution and banking are leveraging Reflexis ONE to achieve and communication solutions for multi-site organizations measurable improvements in customer engagement & in retail, food service, hospitality, and banking. associate productivity and retention. The Reflexis ONETM intelligent work platform is used by Contact Reflexis Systems, Inc. our customers across the globe to simplify execution, Phone: +1 (781) 493-3400 // Fax: +1 (781) 493-3999 improve communication, and optimize labor decisions. Email: info@reflexisinc.com // Web: http://reflexisinc.com/
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