Is CPG Dying in Canada? How to do Rightsizing the Right Way

Change is a constant factor in the retail landscape, and adapting to change is a critical component of any brand or retailer’s strategy. It seems as though many companies are making the move to smaller locations, downsizing and putting emphasis on online sales. This trend to downsize has had many impacts - not least of which is the continued competition, impact on brand loyalty and the impact on employees (lots of people are finding their jobs being downsized as well).

Canadian Grocer recently weighed in on the online grocery trend with their article “Get ready for online grocery’s rise.” According to the article, “Of Canada’s vast supermarket sales, only a drop in the bucket are online. Nevertheless, grocers and CPGs should start to plan their e-commerce strategy now or else get left behind as consumers start to fill their pantry from their computers and smartphones.”

Furthermore, according to Keith Anderson, vice-president of strategy and insight at Profitero, “By 2018, three per cent of CPG sales in Canada could be online, up from the current estimates of 0.5 to one per cent.” That is a major mark up!

Check out the full article here: http://www.canadiangrocer.com/top-stories/get-ready-for-online-grocerys-rise-in-canada-54240.

So what does this mean for retailers across the nation? Well, with the downsizing trend often comes lost loyalty, so you absolutely need to be sure that you are rightsizing!

What does rightsizing mean? Whether you are downsizing or upsizing (yes, while the trend seems to be downsizing, many other stores are upping their square footage rather than reducing it), if you do it correctly, you are rightsizing. This means keeping customer service levels high and staying on top of empty or messy shelves and employee to customer ratios.

Is CPG dying in Canada? Of course not. It is just changing. Chances are we won’t see the demise in our lifetime - we can always keep our fingers crossed just for good measure - but that doesn’t mean that we can keep doing things the way we’ve always done them.

The old saying adapt or die may not necessarily apply here, but when it comes to rightsizing, you always need to keep an eye on strategy.

For more about retail downsizing, upsizing, or as we like to call it, rightsizing, please call Storesupport today at 1-877-421-5081.

Going Digital…Are You Targeting Through Digital

Over the last few years, digital has become the trend in retail. Keeping in touch with consumers, engaging them and motivating them to purchase has become far easier when digital is embraced. So, have you gone digital? Are you targeting your customers through digital?

Here are the top 3 digital trends sweeping the retail industry in 2015:

Social media. Social media continues to be a major player in the retail game. Before social media, people used the internet primarily to research products and compare prices. However, although that remains an important part of digital, far more is now done online, specifically when it comes to social networks and reputation. 10 years ago, not having a website was common. 5 years ago, many companies still had not jumped on the social media bandwagon. In 2015, both of these are gone the way of the horse and carriage - a few hangers-on still try to stick with tradition but it is becoming harder and harder. Now, people head online not just to research price, but to read reviews, get recommendations, find out what others in their networks are saying about different companies. Ignoring this fact can be detrimental - social media definitely needs to be embraced.

Marketing through email. Being asked for your email address at the register has become commonplace, and for good reason. Marketers are celebrating the value of email marketing for retail in a big way. It is a great way to keep customers informed, and especially when they are provided with something of value, is a great way to get them into the store. Just make sure to balance out the promo and don’t be sending daily emails - too much and that unsubscribe button will be getting a work out. Keep emails short and sweet - weekly deals, promos, etc. are a great way to keep customers connected with your brand or retail location.

Digital signage and interactive retail displays. Customer engagement offline is becoming just as important as online, and it too has gone digital. Digital signage and interactive displays are a great way to grab attention and get customers talking. This is especially popular with newer products or brands. Create an emotional connection, draw on seasonal tradition, anything that will make a customer stop and think is a worthy addition on the retail floor.

No matter the industry, going digital is now a necessity, and with CPG it is no different. Are you taking advantage?

For more about going digital in the retail arena, please call Storesupport today at 1-877-421-5081.

The Young and The Restless? Generational Challenges in Retail

Baby Boomers, Generation X, Y, Z, Millennials - sometimes it becomes almost impossible to keep all of these groups straight - and keeping their wants and needs as both customers and employees is even harder. Generational challenges in retail seem to only be growing with the times and that means that it can be hard to keep up, and that makes keeping up even more essential!

Consumers:

Chances are, your pool of potential consumers is generationally diverse - this is especially true in the consumer packaged goods industry - and that presents its own challenges. One approach to deal with this is to choose one group and cater specifically to them, ignoring all others. Is this a good idea? Probably not, and we suggest taking a different route.

Instead, cater to every group simultaneously. Technology has made this task easier and harder all at once. For example, online shopping, although taken advantage of by all ages, is more common for younger generations. However, technology in store and mobile e-commerce continues to grow, and the older generations are adapting just as well. The best advice we can offer when it comes to dealing with this generational challenge in retail is to make sure that you are not putting off one group in exchange for another - be inclusive, not exclusive.

Want some more advice on how to overcome this challenge? Check out this great article from Instore Magazine:
http://www.bakemag.com/instore/Consumer/Demographics/2014/12/Generational%20differences.aspx?cck=1.

Employees:

The retail space is predominantly filled by millennial aged employees - this is a well-known fact. This alone creates problems. Hiring almost exclusively, whether by choice or necessity, from one group means that shoppers outside of this group can feel ostracized - never a good thing in retail. When you have a generationally diverse workforce, this strongly works in your favour. Each group has different needs - but as a whole they should be working together.

Dealing with clashes? Here is a great article from Vancouver Business. Although not specific to retail, it has some really excellent tips that do apply to the retail landscape: https://www.biv.com/article/2015/5/ask-experts-embracing-generational-differences-wor/.

There is no way around it - generational challenges in retail exist, both on the consumer side and within the workplace. This fact can’t be denied, and unless you embrace these difference, you may just find yourself at the back of the pack.

Call Storesupport today for people support and marketing tips to take advantage of these differences: 1-877-421-5081.

People Support: Top 5 Reasons to Hire 3rd Party Retail Employees

All of us in the retail world have struggled with it at one time or another; the decision to outsource people support is debated heavily in the retail industry, and many retailers have asked us why they should even bother…so, why should you even bother? Is hiring 3^rd party retail employees worth it?

As an answer, here are our top five reasons to hire 3^rd party retail employees. Consider each one, and we are confident that the answer will be pretty clear.

-          Time.

o   In house: When you add up all of the time spent placing an ad, interviewing, then training new employees, these hours can really start to climb. And it isn’t just that employee’s time (which of course you have to pay for), it is HR time as well.

o   Outsourced: You can pretty much turn back the clock when you outsource - as employees are already vetted and trained when they show up for work.

-          Resources.

o   In house: This is along the same lines as time, especially when you consider your employees a valuable resource. Any of the materials needed, including training resources and uniforms, require reusing (or repurposing or repurchasing) with every new hire.

o   Outsourced: These resources are significantly minimized when the employee is brought in by a third party.

-          Cost.

o   In house: The above time and resources cost money. After all, you can’t train an employee for free.

o   Outsourced: Again, costs are significantly reduced when everything is already done.

-          Service.

o   In house: When you hire a new employee, even if the interview is a smashing success, you can never truly gauge an individual’s commitment to service until they are on the store floor and interacting with customers. If it isn’t on par with your expectations, this may require additional training, or in a worst-case scenario, firing and hiring once again.

o   Outsourced: When the third party can guarantee high levels of service, you don’t have to worry. With trained, experienced employees, you don’t have to worry about customers being dissatisfied or dealing with an under-performing new hire.

-          Stress.

o   In house: With hiring, stress is almost always a factor. This is doubled when you consider having to let someone go with restructuring changes or if hiring on a seasonal basis.

o   Outsourced: Temporary employees from a third party do not incur this stress - the hiring and letting go is already handled by someone else!

When you are considering outsourcing your people support, whether for seasonal needs or short term solutions for rightsizing, these reasons to hire 3^rd party retail employees might just help you decide.

Storesupport has the people support that saves you time, money and resources, and can give you peace of mind. Call us today at 1-877-421-5081.

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.