How Retailers Can Stop In-Store “Zombies” From Eating Into Sales and Profitability and Hurting the Customer Experience
New Research from RIS News Discusses Why Billion Dollar Retailers Lose $10-$30 Million Annually; Retailers Say Use of Email and Spreadsheets is Number 1 Culprit.
DEDHAM, Mass. – “How close do retailers believe their stores are to scoring in the 90+ percentile in timeliness and consistency for executing merchandising plans? Not close at all.” That’s one of the conclusions from a recent survey of retailers by RIS News. In its report, called “Battling the In-Store Merchandising Zombie,” senior executives of national and large regional retailers gave stores average to low marks in their ability to complete product launches, price changes, and omni-channel processes on a timely and consistent basis. They also said the top obstacle (61.8%) to improving effectiveness of merchandise functions was the use of e-mail and Excel spreadsheets.
- 44.1 % said inability to forecast required workloads to execute events was an obstacle to improving effectiveness of merchandise functions (second highest after email/spreadsheets usage)
- 41.2 % said ineffective communication methods with stores was an obstacle to improving effectiveness of merchandise functions (third highest)
- Timely and consistent stock-out replenishment was rated the highest in value (8.3 on a scale of 1-10 with 10 the highest) of response options, but stores ability to replenish stock-outs received the lowest rating (6.8)
- Responding to weather-related events (6.6), Buy Online/Ship from Stores (5.9), and impending overtime/labor issues (5.8) were rated second, third, and fourth respectively in the impact of stores’ ability to respond to omni-channel operations and processes
- Only a quarter or fewer respondents said they have up-to-date technology for omni-channel processes such as Buy Online/Ship from Stores, monitoring social media driven demand, and adjusting to weather events
“Is it overstating the case to compare the state of in-store execution processes that support merchandising efforts to zombies who refuse to die? I don’t think so,” said Joe Skorupa, Group Editor-in-Chief of RIS News, in the report. “Email and Excel spreadsheets are powerful tools, but they require a high degree of manual input and individual monitoring. They were not built to be retail applications of record that are centrally managed and shared across departments and stores. They cannot enforce compliance with merchandising tasks and goals nor automatically produce an audit trail for tracking in real-time.”
“The results are resoundingly clear: retailers continue to leave money on the table due to their insistence on forcing stores to use antiquated tools. They continue to use obsolete tools and even paper reports — even though the best-run retailers in the world have implemented in weeks or months task management and labor scheduling solutions that enable coordinated planning, real-time store workload and execution visibility, and best-practice workforce management,” said Murtaza Ghadyali, Senior Vice President, Product Management, for Reflexis. “The good news is that by implementing an integrated platform of workforce management and real-time execution solutions, retailers can solve age-old labor operations and task execution challenges while efficiently executing new omni-channel processes to improve the online-to-store customer experience.”
About Reflexis Systems, Inc.
Reflexis is the pioneer in real-time store execution and workforce management solutions that enable retailers to execute their customer engagement strategy flawlessly and uncover profit. The Reflexis platform of real-time store execution, task management, KPI/compliance, time and attendance, and labor scheduling (including budgeting, forecasting, and employee self-service) enables retailers to align store labor/activities to corporate goals and institutionalize best-practice response to real-time metrics and alerts.
For the past 12 years, more than 200 of the world’s best retailers in multiple vertical categories have reported dramatic improvements in store-level compliance with corporate strategies; higher productivity of corporate, field, and store employees; and increased revenue and profitability after implementing Reflexis workforce management solutions. Reflexis StorePulse® (patent pending) synchronizes store-level activities with real-time KPIs, alerts, and customer demand. Stores can systemically execute best practices to provide a greater quality of customer engagement, leading to higher revenues.
Reflexis Systems, Inc. is privately held and headquartered in Dedham, Massachusetts and has offices in Atlanta, London, and India. For more information, visit reflexisnew.wpengine.com. Follow Reflexis on LinkedIn, Facebook, Twitter, YouTube, Google+, and Instagram: LinkedIn | Facebook | Twitter | YouTube | Google+ | Instagram
Reflexis Systems, Inc.
David L. Andrews, (781) 493-3351
Director of Marketing Communications
OP Choudhary, 44 (0) 1256 857310
Head of Operations, EMEA
Zack Young, (617) 401-4675
Direct of Sales and Marketing
Rebecca Shirazi, (617) 401-4684
About RBM Technologies
About RBM Technologies, Inc.: RBM Technologies, Inc. is the leading SaaS retail solution for optimizing in-store merchandising campaign planning, communication, and execution. Based in Cambridge, Massachusetts, RBM’s Visual Merchandising Manager, SKUter and VMM Mobile help global brands and leading retailers deliver a consistent brand experience to their customers, with the right products, at the right time, in the right place. For more information, visit www.rbmtechnologies.com or follow us on Twitter: @RBMRetail.
About RIS News
RIS News, published since 1988, is read by over 22,000 retail executive decision makers. RIS writes about how retail businesses can benefit through the use of technology. RIS covers Customer Management & Marketing, Store Systems, Enterprise Operations, Supply Chain/Inventory Management, Merchandise Management, and Cross-Channel Strategies. For more information, visit RIS News at www.risnews.com.