Have you heard of the retail apocalypse that wasn’t? Still, retailers face major challenges in today’s climate. Here are 6 key challenges faced by retailers worldwide.
Challenge #1 Merchandising
Merchandising compliance is still staggeringly low. Studies show 60% of promotional displays are not executed properly. 60 percent! Properly executed retail displays register as much as 193% sales lift.
Retailers who audit for merchandising execution can quickly identify failed execution and put fixes in place. Responding to poor execution within 5 days of campaign launch can lead to 14.5% revenue recapture! Overall, making deadlines, completing restock, and executing merchandising campaigns on-time and in-full can raise same-store sales by 3.7%.
Challenge #2 Loss Prevention
Loss prevention remains a very real challenge for retailers big and small. Globally, annual retail shrink topped $100 billion last year! While cases of retail fraud and organized shoplifting gangs grab headlines, almost a quarter of retail shrink originates from a more mundane source: administrative error.
21% of annual retail shrink stems from administrative and paperwork error. Putting systems in place to streamline administrative processes and automate data input can go a long way in preventing losses from shrink.
Challenge #3 Communication
Lack of communication is the root cause of 20% of retail program failures. Effective retail communication is essential. Without it, product recalls will not be fully compliant; marketing and merchandising initiatives will fall short. Time and money are wasted when retailers fail to put a cohesive store communication strategy in-place that includes two-way, trackable communication.
Challenge #4 Saving Time/Labor
Inefficient paper-based or in-house built audit systems contribute to inefficient store visit processes. 44% of district and area managers spend more than 15 hours per week conducting store visits. 42% spend 2 – 5 hours preparing for store visits, and 40% spend another 2 – 5 hours preparing reports after store visits.
This means most district/area managers are spending 20+ hours per week just on the store visit process! Retailers who implement software to automate the store visit process realize significant time and money savings.
Challenge #5 Health and Safety
Globally, retailers report 480,000 work related injuries annually. While direct injury costs are high, the indirect costs associated with workplace injuries are staggering.
Loss of productivity, legal fees, worker replacement, training, and insurance increases can be as much as 17x the initial injury cost. Taking all this into account, it is easy to see how investment in injury prevention, including health and safety audits, can yield a return of $2 – $6 dollars for every $1 invested.
Challenge #6 Customer Experience
Customers can be unforgiving. 42% will stop shopping with a brand after just two bad experiences. Acquiring new customers is expensive, costing five to 25x as much as retaining a current customer.
Keeping current customers happy can majorly boost your bottom line. Happy customers not only spend more, but they also refer and recruit new customers to your brand. Happy customers help generate brand awareness every time they talk, post about or review your brand. This is why increasing customer retention by just 5% can increase profits by up to 95%.
Bindy offers brick and mortar retailers the solution to their retail challenges.
- 92% of customers report Bindy improves merchandising execution
- 91% of customers say Bindy reduces business risk
- 92% of customers report Bindy saves district managers time on store visits
- 88% of customers say Bindy improves store communication and execution
- 95% of customers say Bindy improves the organization’s health and safety
- 89% of customers report Bindy improves customer experience