New Report Reveals Opportunities for Retailers to Increase Sales and Profits Through Omnichannel and Customer Engagement Excellence
To Capitalize on Opportunities to Turn Stores into a Competitive Advantage against Online-only and Traditional Retailers, Companies Must Improve Labor Scheduling and Respond Better to Real-Time Demand
DEDHAM, Mass., July 30, 2015: Retailers have a tremendous opportunity to boost top and bottom line financial results by executing omnichannel processes such as “Buy Online, Pickup in Stores,” and “Buy Online, Ship from Stores,” according to a new report from RIS News. But to capitalize on these and other customer engagement opportunities, retailers must think differently and transform their labor scheduling and other store operations processes to better respond to real-time customer demand.
“The success or failure of virtually every new omnichannel service or function added to the store is dependent on how well associates carry it out,” said Joe Skorupa, Editorial Director of RIS News, in the report. “Retailers are well aware of this. They also know that even as the omnichannel burden has increased at the store-level, there has not been a parallel increase in labor management practices that ensure associates successfully execute their new tasks and responsibilities.”
“On a one-to-five scale, where one stands for very ineffective and five stands for very effective, retailers give themselves a 3.1 grade for payroll allocation,” Skorupa continued. “When using a rating scale like this a 2.5 score shows neither strength nor weakness. A 3.1 rating barely nudges into the minimal level of effectiveness. No one in retailing is happy with a 3.1 score for effectiveness.”
The Custom Research report, which is sponsored by Reflexis Systems and Connors Group, is based on a survey of retailers (42 percent of respondents work for companies making $1 billion or more in annual sales) conducted in May and June. The survey unveils key opportunities to increase sales and profits through omnichannel and labor scheduling excellence. For example, retailers in the survey estimated the following sales increases and cost reductions when stores execute omnichannel at a high level of efficiency:
- 11% – 15% increase in total company sales for retailers with more than $1 billion in annual sales
- 6% – 10% increase in total company sales for retailers making less than $1 billion in annual sales
- Between $1.5 million – $3.5 million reduction in annual labor costs for a billion dollar retailer
But survey respondents also indicate plenty of opportunities for stores to improve operational practices, including:
- Just 16% use an automated labor scheduling system with engineered labor standards in their current payroll allocation and labor operations management
- 3% “Schedule by intuition” ─ retailers require store managers to write weekly schedules that balance employee preferences with business and customer needs using hunches and “best guesses”
- Retailers gave a low 3.2 out of 5 rating for their consistency in stores executing customer “go-to-market” plans such as promotions and product launches
- 30% rated “Best-practice response to real-time customer demand” as an “Urgent Need” ─ by far the highest score ─ with “Productivity tools and accountability” coming in second at 17%
- Store-facing systems received a 2.9 rating (on a scale of 1 to 5) for effectiveness in freeing up time for managers from administrative/office tasks
“The RIS News and other recent reports signal a real opportunity for retailers to increase sales, reduce shipping costs, and improve omni-channel service levels through store-level e-commerce fulfillment,” said Brett Friedman, Senior Vice President of Global Sales and Marketing for Reflexis. “But the RIS News report is the latest to indicate stores must change suboptimal operational practices of using disparate manual tools and hoping for the best. Retailers must provide stores with technology to improve productivity and consistently deliver on their brand promise to shoppers.”
“Retailers have rapidly implemented ─ in just a few months ─ the Reflexis platform of workforce management and StorePulse real-time store execution solutions to transform their store operations,” said Murtaza Ghadyali, Senior Vice President of Product Management for Reflexis. “By doing so, retailers provide a system to optimize labor scheduling, execute go-to-market plans, and respond using best practices to last-minute customer demand and omni-channel alerts. They also improve productivity by updating multiple store-facing systems ─ including omni-channel order management systems. All from a single Reflexis dashboard on mobile devices.”
About RIS News
RIS News is the essential source of information for retail executives, helping them connect with relevant content, engage with their peers and find best-in-class business solutions and strategies to make smarter IT and business decisions. RIS News helps executives adapt to change, stay competitive and maximize profits and productivity.
About Connors Group
Connors Group helps clients increase shareholder value with real, measureable, and sustainable operational improvement. Our world class team of industrial engineers and retail experts apply extensive experience using proven methods and a High Performance Workforce approach. We provide expertise across the entire supply chain — manufacturing, distribution, in-store operations. Our ability to quantify work, the customer experience and areas of opportunity allow our clients to prioritize investments based on return potential. Connors Group takes pride in being a business partner and offering this expertise at a reasonable price. Engineered labor standards, customer experience insights, lean practices, store operations efficiencies, sales productivity, and process improvements are among our core deliverables that drive perpetual returns for our clients.
Our slogan reflects the belief that creating a continuous improvement environment is the key to being the very best: “Continuous Improvement. Daily Pursuit.” Connors Group is privately-held and headquartered in Pittsburgh, Pennsylvania. Visit us on the web at www.connorsllc.com
Note: Connors Group is a Silver Sponsor and will exhibit at Reflexions, (Rĭ-flěk’shəns), the Users Group conference for retailers and suppliers that have implemented or will implement Reflexis solutions including labor scheduling, task management, time and attendance, KPI/compliance, and StorePulse® (Real-Time Store Execution). Reflexions will be held Sep. 14-17, 2015 at the Cosmopolitan in Las Vegas.
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 14 years, more than 200 of the world’s best companies in multiple vertical categories such as retail, hospitality, and Quick Serve Restaurants have reported dramatic improvements in compliance with corporate strategies; higher productivity of corporate, field, and store employees; and increased revenue and profitability after implementing Reflexis workforce management and real-time execution solutions. Reflexis StorePulse® (patent pending) synchronizes activities with real-time KPIs, alerts, and customer demand. Stores, hotels, and restaurants 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.
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