Top 10 Retail Store Operations Trends for 2021 - Zebra ...

Page created by Mario Zimmerman
 
CONTINUE READING
Top 10 Retail Store Operations Trends for 2021 - Zebra ...
Top 10 Retail Store
Operations Trends
for 2021
Top 10 Retail Store Operations Trends for 2021 - Zebra ...
TABLE OF CONTENTS
     Introduction, page 2

TOP 10 TRENDS
1 Increased Focus on Simplifying Operations
2    Investment in Robust BOPIS and Curbside Pickup Processes

3    Forecasting and Scheduling Labor for Uncertainty

4    Improve Store Communication and Response to Disruption

5    Virtual Appointment Booking

6    Interest in Touch-Free Tech

7    Convenient and Speedy Returns

8    Catering to Employee Expectations

9    Renewed Focus on Safety

10   The Rise of Dark Stores

                                                                1
Through the years, retail has been defined by disruption. Increased sales from e-commerce have forced
brick-and-mortar retailers to differentiate themselves with unique in-store experiences. The ubiquitous
use of smartphones has changed the habits and the desires of retail customers. The reduced spending
power of the middle class has shifted in-store buying patterns of younger generations. While the
overwhelming retail response has been to innovate and reimagine how stores function, how quickly
and to what extent retailers should innovate was an open question.

That all changed in 2020. COVID-19 has resulted in a radical shift for the retail industry, exposing
every weakness that retailers have. Inefficient communications may have been frustrating
in normal times, but now they could be catastrophic if critical safety information can’t be
communicated successfully. Testing the waters in curbside pickup may have been an interesting
experiment before COVID-19, but now efficient curbside pickup is the difference between
meeting sales goals and lagging far behind.

2021 is certainly going to be a different year and is already shaping up to be full of change.
The pandemic still rages across the country, with new cases still extremely high and many
concerned about new, more transmissible, COVID-19 variants. But with the vaccine being
rolled out across the country, and wide availability to the general public coming by late
spring or summer, the end of 2021 will likely look very different than the beginning.

But that doesn’t mean that things will go back to the way they were. Curbside
pickup and other alternative shopping options will still be popular. Customers will
still be concerned about safety and an economy that hasn’t fully recovered. The
pandemic has exacerbated trends that we’ve seen steadily moving forward for
years, and coming out of the pandemic won’t reverse much of the change that has
happened.

So how will retailers address these store operations challenges? We’ve compiled
what we see as the top 10 store operations trends of 2021, as well as strategies
and ideas retailers can use to achieve success during another turbulent year.

                                                                                                          2
Increased Focus on Simplifying Operations

                                       If the pandemic has taught retailers one major lesson          This continued focus on simplicity will be essential to
                                       about their store operations, it’s that convoluted             managing further disruption down the line. Streamlining
                                       processes aren’t sustainable under the strain of               labor forecasting and scheduling processes with AI-driven
                                       disruption. This is why retailers that were considering        workforce management will help retailers optimize labor
                                       digital transformation initiatives are beginning to invest     spend and ensure compliance with changing regulations.
                                       more heavily in them. Considering the inevitable strain        Improving communication and store execution with real-
                                       that e-commerce and other pressures will place on brick-       time task management will help store associates simplify
                                       and-mortar retailers, 2021 will certainly bring a continued    work while providing corporate and field management
                                       focus on digital transformation, where retailers continue      with real-time visibility into task status and completion.
                                       to simplify standard store operations processes with
                                       innovative technology.

Investment in Robust BOPIS and Curbside Pickup Processes

The pandemic brought about a shift towards utilizing      retail leaders and laggards in 2021. Streamlining
omnichannel services, especially buy online pick-up       these services with real-time task management,
in-store (BOPIS) and curbside pickup, as alternatives     where real-time alerts can notify employees when
to in-store shopping. With 85% of customers               to collect and deliver orders, is essential to ensuring
increasing the rate at which they used curbside           that they run smoothly and without delay. Real-time
pickup, this is a massive shift, one that looks to be     task management also ensures that any tasks related
sticking around for the foreseeable future.               to BOPIS and curbside pickup are sent to store
Quick and effective BOPIS and curbside pickup             associates’ mobile devices in real time, and that they
processes will certainly be a dividing line between       are prioritized accordingly.

                                                                                                                                                                   3
Forecasting and Scheduling Labor for Uncertainty

                                         COVID-19 has shown just how dangerous outdated labor            Some retailers have used intelligent labor forecasting
                                         forecasting and scheduling processes can be. Historical         and scheduling solutions to account for variables created
                                         data that would otherwise prove useful in normal times          by pandemic disruption, helping them create best-fit
                                         couldn’t adequately forecast sales performance and              forecasting models to adapt to unforeseen changes
                                         labor needs during fluctuations in pandemic severity or         in customer traffic, product demand, and pandemic
                                         implementation of local COVID-19 regulations. This has          severity. These solutions will continue to prove useful as
                                         made it impossible to properly staff retail stores, which       we address the pandemic in 2021, since retailers will still
                                         means that critical in-store tasks, some related to safety,     need to respond to rapid changes in customer demand,
                                         might not be addressed by understaffed stores.                  differences between stores in diverse geographic
                                                                                                         locations, and other unforeseen shifts.

                                 Improve Store Communication and Response to Disruption

Quick and effective communication was a critical part    and will continue to be an important investment in
of any retailer’s pandemic strategy in 2020. Without     2021. These solutions enabled retailers to create
efficient and simple communication, retailers were       precise distribution groups for corporate updates,
unable to efficiently send critical safety information   organize messages with tags and categories for
across the organization, implement new pandemic-         quick reference, and utilize custom templates for
related initiatives throughout all stores, or manage     recurring messages. As retailers continue to invest in
any crises that came up unexpectedly at stores.          real-time communication in 2021, they’ll find it easier
Real-time communication solutions were essential to      to disseminate updated safety information and
streamlining store operations during the pandemic,       implement new safety-related initiatives.

                                                                                                                                                                       4
Virtual Appointment Booking

                                       As retailers shifted towards curbside pickup, BOPIS, and          Appointment booking solutions offered a way for retailers
                                       changes to in-store shopping, many retailers utilized             to manage these new processes more easily. These
                                       virtual appointment booking, giving customers the                 solutions gave customers the ability to book online while
                                       opportunity to schedule curbside pickup, book time                also interfacing with workforce management to precisely
                                       slots to shop in-store, and join on-site virtual queues to        align staffing with appointment volume. These solutions
                                       avoid standing in lines. This ensured that customers who          will still be valuable in 2021, since many customers,
                                       wanted to avoid the risk associated with shopping in              both during the pandemic and after it resolves, will
                                       stores were able to do so without major inconvenience.            continue to take advantage of curbside pickup and other
                                                                                                         nontraditional shopping methods.

Interest in Touch-Free Tech

Keeping employees safe will continue to be                Many retailers have found ways to reduce device
essential as we address the pandemic in 2021. In          sharing through touchless time clocks and mobile
2020, many store associates were anxious about            employee self-service applications. These have
customers ignoring social distance regulations,           done more than simply reduce risk of illness; they’ve
as well as exposure through their colleagues.             also streamlined processes such as requesting time-
Sharing devices, whether they were in-store kiosks,       off, checking timecard or schedules, or clocking in
time clocks, or other mobile devices, presented a         and out of work. Emphasizing simplicity in employee
constant risk to employee health, depressing their        self-service and time and attendance procedures
morale and overall productivity.                          will continue to play a large role in 2021, as retailers
                                                          search for functional areas they can simplify with
                                                          retail technology.

                                                                                                                                                                     4
                                                                                                                                                                     5
Convenient and Speedy Returns

                                        Customers in 2020 quickly became frustrated with long,            In 2021, customers will still expect to make returns without
                                        drawn-out processes at stores, whether it was standing            having to wait in long lines, and they’ll expect store
                                        in line at checkout or waiting to get into the store. This is     associates to handle their returns quickly and without
                                        clearly the case for the returns process as well. Inefficient     error. Real-time task management gives store associates
                                        returns processes don’t just impact customers; a majority         the information they need to rapidly process returns,
                                        of store associates feel greatly challenged by the extra          ensuring that all returned items are correctly routed to
                                        work associated with managing returns. Many might not             their proper destination. These solutions also provide real-
                                        understand returns policy changes brought about by                time alerts when returns need to be processed, ensuring
                                        COVID-19, such as a list of items that cannot be returned,        that there are always the right number of associates at the
                                        and might make more mistakes as a result.                         returns desk to handle projected volume.

                                Catering to Employee Expectations

Retail employees have seen their worlds overturned       vaccinated, retail employees are still struggling to
as a result of the pandemic. Many have had to            manage both work and at-home responsibilities.
manage increased child care responsibilities or had      Intelligent labor scheduling solutions are going to
to care for elderly relatives who can’t risk exposure    be critical to providing the flexible schedules that
to the virus. Flexible schedules and employee            store associates need, including the flexibility to
self-service has been critical to ensuring that store    pick-up open shifts at other nearby stores. These
associates today have the ability to manage an           solutions ensure that all variables critical to aligning
adequate work/life balance.                              labor with in-store workload are accounted for, such
This isn’t likely to change anytime soon. With many      as employee availability and preference, service
schools still holding remote or hybrid learning,         and customer engagement targets, customer traffic
and with many elderly people still waiting to get        and demand, and weather events and local trends.

                                                                                                                                                                         6
Renewed Focus on Safety

                                       Even through the end of the pandemic, there will still          effectively in order to reduce risk to customers and
                                       be many questions about how to keep both customers              employees. Real-time task management will be essential
                                       and employees safe. Should everyone continue to social          for managing these changes. With this technology,
                                       distance? Should everyone continue to wear a mask?              employees can receive real-time alerts if they have
                                       Health guidelines will certainly continue to shift as experts   to complete critical safety-related tasks, and can get
                                       learn more about how the vaccines affect both people            immediate feedback from store managers if they
                                       and emerging variants of the coronavirus.                       complete safety-related tasks incorrectly. This will ensure
                                       2021 will be another year of not only adapting quickly          that stores can effectively carry out all necessary tasks as
                                       to changing circumstances, but doing so quickly and             new health guidelines are introduced.

 The Rise of Dark Stores

With the shift towards e-commerce fulfillment that has accompanied         be collected and
the pandemic, many retailers, particularly in grocery, have                packaged.
experimented utilizing dark stores to capitalize on e-commerce sales.      In 2021, the retail
These locations are being used both to cater to curbside pickup            industry may
orders and as a hub for delivery orders.                                   continue to face
The expectation around e-commerce has always been that it will             the fallout of
continue to eat up a larger share of all retail sales. The pandemic        the COVID-19
has only accelerated this trend, making investments in streamlining        pandemic, but
store operations at dark stores even more important. Retail solutions      that’s not cause for
that offer real-time alerts and actionable next steps are critical to      pessimism. Whether it’s improving communication, optimizing labor
accomplishing this. Real-time alerts can be used to notify store           forecasting, or providing employees with cutting-edge technology,
associates when curbside pickup orders are ready for fulfillment,          investing in your retail store operations can help you drive success
and can notify warehouse employees when delivery orders need to            and face these challenges head on.

                                                                                                                                                                      4
                                                                                                                                                                      7
About Reflexis Systems, Inc.

 The Reflexis cloud-based Real-Time Store Operations Platform helps retailers:

        Simplify                                    Improve                                      Optimize
           store operations.                               store execution.                              labor spend.

 Reflexis, now part of Zebra Technologies, is the leading                Today, over 275 leaders in retail, food service, hospitality,
 provider of intelligent workforce management, execution                 and banking are leveraging Reflexis ONE to achieve
 and communication solutions for multi-site organizations                measurable improvements in customer engagement &
 in retail, food service, hospitality, and banking.                      associate productivity and retention.

 The Reflexis ONETM intelligent work platform is used by                 Contact Reflexis Systems, Inc.
 our customers across the globe to simplify execution,                   Phone: +1 (781) 493-3400 // Fax: +1 (781) 493-3999
 improve communication, and optimize labor decisions.                    Email: info@reflexisinc.com // Web: http://reflexisinc.com/
You can also read