COVID-19 | The Ramp-Up Route in Retail - MUNICH, APRIL 2020 - goetzpartners
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
COVID-19 | The Ramp-Up Route in Retail MUNICH, APRIL 2020
Ramp-Up Overview
The number one priority is to open retail stores and create a safe shopping environment for employees and customers.
However, the situation bears the potential to think beyond the current store setup and reimagine the customer experience.
1 2
PRIORITY ONE | OPEN RETAIL STORES PRIORITY TWO | REIMAGINE RETAIL
Which stores should I prioritize and
RAMP-UP STRATEGY PORTFOLIO How should I adjust my portfolio in the
open first?
ASSESSMENT midterm?
ORGANIZATIONAL What do I have to prepare in advance
PREPARATION for a safe and successful opening? How should I change my marketing
MARKETING MIX strategy to better address evolving
Which incentives can I use to boost customers’ preferences?
SALES MEASURES
offline sales and restore confidence?
What do I need to do in order to make
STORE OF THE
COMMUNICATION What must I consider for internal and my physical store portfolio ready for the
FUTURE
STRATEGY external communication? future?
Current challenges Future challenges
For a successful re-opening of stores, retail companies must develop a To achieve sustainable, long-term success, companies need to anticipate
detailed implementation planning. Seamless interaction of different changes in consumer behavior and adapt at an early stage. The current
modules ensures that health and business risks are minimized crisis presents a suitable moment to scrutinize the own strategy
Act now! Think ahead!
Source: goetzpartners 21 Priority One | Open Retail Stores
In order to open retail store doors again, retailers must consider the ramp-up strategy, orchestrate organizational
preparations, implement sales measures and follow a consistent communication strategy to all stakeholders.
ORGANIZATIONAL COMMUNICATION
RAMP-UP STRATEGY SALES MEASURES
PREPARATION STRATEGY
■ Decision between gradual ■ Modification of the sales floor ■ Development of special offers ■ Identification of all relevant
opening (waterfall strategy) vs. according to internal and external and promotions to draw stakeholders (employees, works
complete opening (“Big Bang”) requirements (install cash deck customers into shops without council, press, local authorities,
protection, set up spacers and risking a run and potentially etc.) and their key concerns
■ If opting for a gradual opening,
information boards, place realize a catch-up effect from
identification of individual shop’s ■ Preparation of a coordinated
hygiene products) held back demand
opening priority based on criteria communication plan incl.
such as shop importance (e.g. ■ Resumption of operational ■ Preparation of a dedicated individual key messages
flagship stores), ownership (self- activities (order cash collections, online and offline marketing
■ External communication of re-
owned vs. franchise), and ensure product availability, adjust campaign to generate awareness
opening via all channels with
regulatory requirements (e.g. opening hours online, update
■ Production and dispatch of emphasis on strict hygiene
store size and hygiene risks) staff planning and schedules)
physical marketing articles for precautions
■ Development of a high-level ■ Clearly define a protocol of display in shops
■ Internal communication of
ramp-up plan defining required precautions, incl. guidelines for
■ Incentive for dealers to ramp-up plan incl. Q&A
measures, responsibilities, and cash handling, employee contact
additionally pursue local
milestones between shifts, and contingency ■ Establishment of an internal
promotion and marketing
planning) and/or external hotline
activities
addressing hygiene concerns
Degree of centralization Degree of centralization Degree of centralization Degree of centralization
Degree of centralization: High Low
Source: goetzpartners 32 Priority Two | Reimagine Retail
Secular retail trends, i.e. online shopping, online marketing, and digitization, revolutionize the customer experience. The
COVID-19 disruption could be taken as an opportunity, to rethink a company’s retail concept along these dimensions.
KEY RETAIL TRENDS
Online shopping Online marketing Digitization of the “brick and mortar” experience
PORTFOLIO ASSESSMENT MARKETING MIX STORE OF THE FUTURE
◼ Store networks represent a major share of retailers’ ◼ The effectiveness of traditional advertising suffers ◼ Stores are temporarily modified and will need to
fixed cost items. from the change media consumption patterns. be partly refurbished after the COVID-19 crisis.
◼ Due to the Corona lock-down all non-essential ◼ Even physical out-of-home advertising goes ◼ Innovators are testing digital solutions in their
retail stores had to close. digital, e.g. through pragmatic buying. stores to enhance the customer experience.
◼ The situation has even exposed non-digital ◼ Budgets have been shifted to online marketing ◼ Digital payment solutions may be an answer to
consumers to online shopping. while stores were shut down. customers’ increasing hygiene awareness.
Assess current store network portfolio and consider to Evaluate the experience from a higher online marketing Assess innovative retail solutions for (flagship) stores in
discontinue non-essential, unprofitable locations budget and identify the ideal balance order to stay ahead of your competitors
Debates permanent close- Renowned for guerilla Operates supermarkets
Commerzbank down of half the branches[1]
Sixt marketing campaigns
amazon go without checkouts
[1] manager magazine
Source: goetzpartners 4Contact us
crisis-taskforce@goetzpartners.com
Dr. Gunnar Binnewies Dr. Sigurd Kitzer Philipp Widmaier Milan Saric
Partner Partner Managing Director Managing Director
Restructuring Private Equity Consulting Debt Advisory M&A Tech & Bus. Serv.
+49 151 17141083 +49 151 17141033 +49 151 18236115 +49 151 17141117
Stefan Sanktjohanser Dr. Stephan Goetz
Managing Partner Managing Partner
Dr. Wolfram Römhild Axel Meythaler Dr. Jan-Hendrik Röver Christian Muthler
Managing Director Managing Director Managing Director Managing Director
Strategy & Industrials Orga. & Transformation Energy, Oil & Gas Indust., Autom. & Bus. Serv.
Dr. Alexander Henschel Dr. Florian Mes Ivo Polten Ulrich Kinzel
Managing Director Partner Managing Director Managing Director
Transformation & TMT Restru. & Financial Mgmt. Technology, Industrials Healthc., Pharma, MedTech
Susanne Kindler Dr. Gerrit Schütte Gerwin Weidl Daniel Bentrup
Partner Partner Director, Munich Director
Transformation, Sales, TMT Portfolio Perf. & Carve out Chemicals, Industrials Industrials, Bus. Serv.
Günther Schermer Björn Röber Dr. Norbert Danneberg Andreas Hering
Partner Partner Senior Industry Expert Director
Healthcare Digital Private Equity Consulting Digital, Media, Tech, VC
5Disclaimer This presentation has been prepared by goetzpartners Corporate Finance GmbH, Munich (hereafter referred to as "goetzpartners") exclusively for the benefit and internal use of the recipient and does not carry any right of publication or disclosure to any other party. This presentation is not and must not be considered as a prospectus. Neither this presentation nor any of its content may be used for any other purpose without the prior written consent of goetzpartners. The information in this presentation reflects prevailing conditions, to the best of our knowledge, as of this date, all of which are accordingly subject to change. In preparing this presentation, goetzpartners has relied upon and assumed, without independent verification, the accuracy and completeness of all information from public sources or which was otherwise reviewed by us. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, goetzpartners, its members, directors, employees, representatives, and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this presentation or for any decision based on it. © 2020 goetzpartners. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of goetzpartners.
You can also read
