Challenges Facing the Retail Industry

The consumer packaged goods industry is an ever-moving, ever-changing mechanism. Adaptation is key, and with technological developments and rising consumer demands, it can be hard to keep up.

That being said, these changes are not the only challenges facing the retail industry in 2015. Here is a list of some of the others. And of course we are not just going to give you the issues - we also have a few solutions to help make these a little less difficult to face.

Problem: Employee turnover. This is a problem every retailer faces - it is a major problem in the retail industry - and often there is little that can be done to stop it. When an employee enters, then leaves your company, this can create problems for your human resource department, and means a loss of time and resources spent continually hiring and training new employees.

Solution: 3^rd party people support. A company that can provide short notice employees with training and experience can help you mitigate those costs and ensure excellent service and assistance.

Problem: Auditing. For brands located at retail, keeping on top of what is going on on the store floor can be challenging. This is why auditing is another challenge that faces the retail industry on a regular basis.

Solution: You can’t be everywhere at once, but a merchandising company that offers this service can. Not only will this provide you with up-to-date data about competitors’ price points, you can also ensure that customer satisfaction is high - and if not, amendments can be made to improve the situation.

Problem: Allery alert/product recalls. Improper labelling, errors with packaging, issues with ingredients; these are all accompanied by costs for remedy and time and resources spent. They can also mean time with empty space on the shelf, which is never a good thing in retail.

Solution: Emergency response services for retail. When you are made aware of a product recall, whatever the reason, manage the outcome to ensure a positive result. If possible, consider bringing in a team to fix the problem on the spot, rather than worrying about shipping product back to the warehouse. This saves money and time and also keeps the empty space to a minimum.

When issues arise, don’t stress. Let Storesupport Canada help you overcome these challenges facing the retail industry. We have the knowledge and experience to help you save money an increase efficiency. Call us today at 1-877-421-5081.

Retail Downsizing and Upsizing: Target Not the Only Store Making Changes in Canada

Earlier this year we spoke at length about Target Canada’s choice to pull the plug on its Canadian operations, and the many impacts this had for the brand. But Target isn’t the only company to be making changes within their organizational structure - a whole host of parent companies have made the decision to downsize in recent months. 

At the beginning of the year, several companies, including Sears, Mexx Canada, and Sony, announced plans to downsize. The latest in the long line of companies include the parent company for retailers Ricki’s, Bootlegger and Cleo. Back in March, Canadian Business had this to say: Ontario-based Comark Inc, “The company behind Ricki’s, Bootlegger and Cleo plans to close stores and cut jobs as part of a restructuring after obtaining court protection from creditors.”

You can check out the full article about this downsizing move here: 

http://www.canadianbusiness.com/business-news/rickis-bootlegger-cleo-fashion-stores-downsizing-under-court-protection/.

Does that mean the trend is just about downsizing? No. While some stores are making moves to decrease their footprint, others are increasing their square footage to meet rising demands. This includes those stores, such as Amazon, that are making the move to physical locations, having previously only sold online.

When it comes to rightsizing - whether you are downsizing or upsizing - there are few to things to keep in mind to mitigate any unforeseen consequences.  The right people support, a strategy for in-store set-up and planogram compliance can all make a big difference with regard to customer satisfaction and therefore brand loyalty and brand perspective.

Downsizing? Upsizing? When it comes to rightsizing, Storesupport can help. We can offer the tools that give you the ability to properly manage the process. Call us today at 1-877-421-5081.

Retailers Get Ready: The Business of Back to School Shopping

The sun is high in the sky and the weather is warm. The beaches are filled with people trying to get in as much fun in the sun as possible. With school just finishing, most are not even thinking about heading back to school. If, however, you’re a retailer in the back to school business, it is likely at the forefront of your mind. Retailers and manufacturers get ready - it is time for some tips to help you get ready for the back to school shopping blitz.

Something to keep in mind if you tend to procrastinate: Last year, the National Retail Federation predicted back to school shopping for the typical family with kids attending kindergarten, elementary school, middle school, or high school will spend $669.28 this year, up 5% from last year. Total back to school spending is estimated to hit $26.5 billion - now that is big business.

Whether you are ready or not, the back to school shopping season is right around the corner. Be ready.

Our first tip? Start now - not next week, definitely not next month, now. Give yourself plenty of time to get your strategy in place. Waiting until the last minute can mean added stress and lost profits.

Tip #2: Don’t just target parents. Some retailers assume that because parents are the ones shelling out the big bucks, they are the ones to target - and that is true - but they are not the only ones. Cater to the kids too - after all, they are the ones likely adding to the cart or asking for certain items over others.

Tip #3: Post-secondary kids and their parents spend even more - so make sure to highlight and focus on those items that are likely to fill lecture halls and dorm rooms.

Tip #4: Make sure you are ready for the rush. Early birds may not cause too much hustle and bustle, but the last few weekends before school starts can often mean long line ups and messy shelves. Make sure to get a plan in place to ensure coverage is not lacking. A company that offers trained people support is a great way to go as an alternative to hiring short-term seasonal employees.

Tip #5: CPG retailers - think about implementing an experiential merchandising campaign to engage customers and combine common products. This is great when you target the entire range of customers - appealing to parents’ concerns about healthy eating and school food guidelines but also kids’ desire for fun.

Tip #6:  Manufacturers - due to the high volume traffic in store, be proactive and ensure you have merchandisers ready and available to stock shelves for you during these busy times.  If your product is very specific to back to school, don’t get caught with a huge return at the end of the season because the product didn’t get out of the backroom your credit will cost you more than the sales you can gain.

When it comes to back to school shopping, being ready is a sure-fire way to help boost your brand image and bottom line. And Storesupport can help - we have years of experience helping retailers get ready for back to school. Call us today at 1-877-421-5081.

Deloitte’s 2015 Retail Industry Trends: Now and To Come

Deloitte recently released their report on 2015 retail industry trends, and we could not be more encouraged by the results. Big moves are being made by retailers, and the ability to adapt to change is providing ever more opportunity to increase your bottom line.

Check out this handy infographic which outlines the top 5 retail industry trends for this year:

According to the report, these are the five emerging trends for 2015:

• Mobile retailing: expected to reach $640 billion in sales annually, this is a rapidly growing market that is making a huge impact. Globally, it is estimated that, by 2015, around 65% of the population will use a mobile phone and 83% of internet usage will be through mobile.
• Faster retailing: customers now expect same-day delivery and quick response time, all the time.
• Experience retailing: by adding technology, entertainment, and emotion, retailers can create a deeper level of engagement with shoppers. This will come with innovation to enhance the shopping experience, through social media campaigns or marketing co-creation.
• Innovative retailing: market disruption with disruptive creativity. The future of retailing is about adaptation and embracing changes within the industry.
• Travel retailing: redefining the role of airport retail in a company’s strategy. For many retailers, international tourism offers a great opportunity to engage with consumers due to lengthy layovers.

You can read the report in its entirety here: http://evigo.com/18700-deloitte-report-emerging-retailing-trends-2015/.

Whether you are stuck in a rut and need to revamp your retail strategy, or you just want to make sure you are keeping up with the competition, Storesupport can help. We have the tools and expertise to get a merchandising plan in place that takes into account these trends - using them to their full advantage. Call us today at 1-877-421-5081. 

Summer Retail Merchandising Strategies: The Customization Nation

Retail is changing - it is undeniable. Gone are the days when mom and pop shops ruled the roost and all shopping was done in store - none of this online nonsense. Ok, enough with the nostalgia, but really, thanks to a number of different factors, not least of which is technology, customer expectations and shopping habits have changed dramatically, and as a result retailers are finding that retuning their retail merchandising strategies has become a necessity.

These retuning strategies differ greatly, but some are clearly more effective than others. Check out this great discussion article from Retail Wire: http://www.retailwire.com/discussion/18046/the-rise-of-the-customization-nation. In the article, the author discusses a presentation at this year’s Food Marketing Institute Midwinter Conference during which the presenter (an author himself) discussed customization in the retail world and how it is impacting customer engagement.

Thanks in large part to technological advances and the growth and development of online shopping capabilities, consumers now take customization for granted and as a result expect it far more often. And the ability to customize and personalize has come to permeate every shopping experience - not just those taking place in the online sphere.

So what are retailers to do? Complete customization isn’t really practical, nor is it largely cost effective. The conference presenter’s advice: “success is based on reducing choices and curating the experience, which moves the retailer from the role of simply satisfying a need to a trusted advisor position that enables them to proactively sell.”

Additionally, the author notes that some grocery chains are recognizing this expectation and taking risks to challenge traditional retail merchandising strategies. Is it paying off? According to the article, “The reward is a distinct uptick in relevance to the shopper,” so clearly something is having an impact.

Is customization the way of the future? Perhaps, but perhaps it is one of the many innovative ideas that can be utilized, even in some small way, within the CPG industry to further drive sales and increase engagement.

Whether you stick to those tried and true traditional retail merchandising strategies, completely revamp and try customization on for size, or decide that your own custom plan which includes both approaches is the way to go, Storesupport can help get a plan nailed down. Call us today at 1 877 421 5081. 

Retail Disaster: Do These Images Represent a Positive Customer Experience?

In today’s retail environment, customer experience plays a major role in not only the perception of your brand, but also your level of customer loyalty. A happy customer is far more likely to both return to your store and purchase your product. They are also far more likely to recommend you to friends and family, or even to the world at large thanks to social media. Knowing this, how do you think these images work when it comes to customer experience? Do these represent a positive customer experience?

If your store is a mess, trust us, customers notice! No one wants to have to step over piles of stuff on the floor (nor are most willing to purchase items they deem dirty thanks to the mess). And not only does this impact your customer experience, it can turn into a legal hassle if someone gets hurt!

Long line ups are the bane of a shopper’s existence, and having to stand around makes people cranky - and can sometimes have a huge impact on customer loyalty. Continually having to wait in line inevitably leads to choosing a different store where the line ups tend not to be such a problem.

Target Canada had to deal with customer blow-back thanks to empty shelves - one could argue that this issue played a part in their ultimate demise - and we all know how this customer service issue impacts the overall customer experience. Shelves should NEVER look like this (and for most they likely don’t), but even a few empty spaces or the inability to find what one is looking for, or even an alternative, can have customers leaving the store in droves.

Don’t let a lack of people support impact the customer experience you deliver. Messy aisles, long line ups and empty shelves are all, for the most part, a direct result of not enough staff.

Feel like these issues only arise at particular points in the year, during the summer holidays for example? Don’t want to hire, train, and then lay off seasonal staff? Find a merchandising company that can offer trained, experienced, professional staff members, on a temporary basis, right when you need them. This not only saves you time and money, you can be sure these customer service issues are handled!

For more about people support that meets your needs and customers’ expectations, please call Storesupport today at 1 877 421 5081. 

Is Online Grocery Shopping Headed Our Way?

For many of us in the consumer packaged goods industry, the assumption that online shopping doesn’t pose the same threat to us as it does to some retailers is common, after all, not many online retailers offer milk or chicken. However, the looming threat of online grocery shopping, which seems to grow over time, if far closer to home than we might think.

Take, for example, this recent article from Buffalo News, “Dash’s Market launches online grocery shopping”: http://www.buffalonews.com/business/dashs-market-launches-online-grocery-shopping-20150224. According to the article, Dash’s Market, a grocery chain in Western New York, is the first in the area to offer online grocery shopping, giving customers the option to purchase online and then either pick up from the physical location or have the order delivered.

The trend being adopted by stores such as Dash’s is becoming quite common in the face of changing customer expectations. Store downsizing, rightsizing, even the move of previously online-only retailers to physical locations are all other examples of this trend to meet the growing needs of today’s consumer. And that’s not all. If you think that online grocery shopping isn’t really going to materialize, and that it really doesn’t pose much a threat, the fact that it is expected to become a $17.2 billion industry by 2019 may just cause you to reconsider that line of thinking.

And while Dash’s is the first in Western New York, two other top chains have already started the research to implement it in the area. Clearly this trend is picking up speed, and although it is across the border, it is just across the border. Really, how long before our major chains are taking a page out of their book?

This isn’t all bad news. It may be a threat, but does it mean that all consumers are going to switch? Of course not. As with all retail shopping, the customer experience is key, and since other retailers find that online shopping still can’t compete when it comes to that (and therefore a desire to shop at a physical location remains), it is pretty safe to assume that it will be no different for CPG. All of this being said, it does mean a further rise in competition, one that will need to be met head on.

Are you ready to compete? Storesupport has the strategies to make you more competitive, even when it comes to online grocery shopping. Call us today at 1 877 421 5081.