What Drives Store Ops Success? RTP Editors Weigh In
This sixth annual Retail TouchPoints Store Operations Survey examines the top challenges omnichannel retailers face in shoring up their brick-and-mortar locations, and reveals the strategies and technology solutions they are using to meet those challenges.
On top of the basics that have always been part of store operations, today’s stores now must offer online-level convenience, seamless channel integration and unique customer experiences.
In this week’s Editor Q&A, the RTP team shares top takeaways, impressions and reactions from the 2018 Store Operations Survey.
Debbie Hauss, Editor-in-Chief: One of the most important focuses for retailers determined to survive into the future with their stores is workforce management and motivation. Bottom line: Employees and store managers are the front line brand advocates. If they are not motivated, educated and empowered, the brand will suffer. So it’s good to see that retailers are acknowledging the challenges (50% cite employee training/engagement as the greatest store operations challenge); and it’s great to see that many are embracing a strong go-forward strategy (41% have increased investments in employee training/engagement this year). One important focus involves better scheduling practices; and it’s encouraging to see that many retailers are implementing predictive scheduling solutions designed to give employees more options and control over their schedules (52% have implemented, or are planning to implement, predictive scheduling).
Adam Blair, Executive Editor: For an industry that, by its nature, must focus on the present moment, a lot of retailers still seem willing to live in the past. Reviewing the 2018 Store Operations Survey, it struck me as odd that even though we’ve repeated the mantra about the importance of omnichannel until we’re all blue in the face, store performance metrics still hearken back to the earliest days of e-Commerce. Nearly two thirds (65%) of retailers still use same-store sales as a KPI, but only 7% factor in online-to-store conversion rates. That’s despite study after study showing that the vast majority of shopper journeys begin in the digital realm, and that shoppers use their mobile devices extensively while they are in brick-and-mortar stores. I know it’s tough to realign measurement systems that have been in place for years, but retailers need to figure out how to do it — and quickly. Remember the old saying: You can’t manage what you don’t measure.
Alicia Esposito, Content Strategist: Flexible fulfillment — especially buy online, pick up in-store (BOPIS) — is undeniably table stakes for all retailers. Most survey respondents have adopted buy online, ship to home (70%), buy online, pick up in-store (64%) and buy online, return to store (63%). Despite the integral role of the store in supporting these last mile offerings, however, the majority of respondents (69%) said 10% or less of associate labor hours are spent handling online order fulfillment. Does this mean that not as many consumers are embracing these last mile offerings? Or does it mean that retailers are not effectively promoting and optimizing these experiences so that they can maximize the revenue potential? Retailers have an opportunity to extend high-touch service to the fulfillment process, empowering associates with digital technology so they can consult with consumers as they finalize their transactions. Do I think not focusing on the last mile is a lost opportunity? Yes, but there’s always next year!
Glenn Taylor, Senior Editor: I’m just glad, among all the highlights in the report, that 41% of retailers said their store budgets increased in 2018, with 40% keeping on par with last year. The combined 81% total well surpasses the 67% in both 2016 and 2017, another indication that retailers are making more investments where they need to. While everyone would love to see increases across employee hiring and training, the investments in mobile technology and connectivity are nearly as important for the future success of these retailers as the people are. Building a store that can be relevant to a shopper sitting at home on her couch will remain a big battleground over the next few years, so the ones that are shoring up this technology now are making the right decision.
Bryan Wassel, Associate Editor: The biggest takeaway for me is that mobile technology isn’t just changing how shoppers interact with retailers — it’s changing how associates interact with shoppers. Modern customers enter stores armed with computers in their pockets, making them more educated and knowledgeable than ever, while 56% of retailers are arming their employees with their own mobile technology. Some of the most popular in-store uses of mobile represent more in-depth shopper-associate relationships, such as the 42% of retailers using the technology for clienteling/assisted selling. More informed shoppers must be attended by more informed associates, a feedback loop that is being enabled by the growing importance of mobile. Retailers that recognize the importance of this new dimension of brick-and-mortar are already seeing results: mobile increased customer satisfaction for 64% of retailers this year.