Here’s some encouraging news for retailers:
According to the National Retail Federation, April retail sales (excluding automobiles, gas stations and restaurants) increased 0.6 percent seasonally adjusted from last month, and they increased 3.9 percent unadjusted year-over-year. NRF attributes the uptick to last month’s improved employment data, increasing housing prices and a record-breaking stock market.
Of course, whenever results like those make headlines, the savvy retailers I know respond with only cautious optimism. They always counter positive sales reports with two questions:
1. Will the increases continue? and,
2. If they do, will I be ready?
No one can answer the first question with absolute certainty. You’d need a crystal ball.
Fortunately, though, more and more retailers are finding that an answer to the second question is within their grasp, and that is transforming their caution into confidence.
You see, it’s only natural for retailers to be concerned about obsessed with stock levels. The flow of product inventory is the lifeblood of every retail business. It’s what keeps them up at night. It’s the backstory to success.
But now, retailers can take the guesswork out of inventory. They can use analytic data solutions to better forecast product needs, optimize inventory flow and replenish according to customer shopping patterns. In fact, we’ve just announced an enhanced solution that makes these processes not only possible, but easier than ever before.
And the timing for this technology couldn’t be better. In today’s challenging economy, retailers have little margin for error. Plus, they’re making it a priority to improve the customer experience by being more in tune with customer preferences.
According to the 5th annual Merchandising Benchmark Report from Retail Systems Research (RSR), which provides insight into business and technology challenges facing the extended retail industry: “While out-of-stocks and inventory performance remain top-of-mind (particularly for large retailers and those who sell fast-moving goods), retailers’ concerns about understanding customer preferences and their own ability to respond to those preferences with new ideas about pricing and promotions -- have become their top business challenges.”
What can retailers do to become more responsive to consumer demand? RSR suggests these four action steps:
Get predictive. Use modern forecasting methods to uncover insights into customer buying behaviors and preferences.
Get responsive. Feedback is essential. When you have access to real-time information, you can respond automatically to trends.
Get automated. You need the right tool for the right job. Today’s inventory and warehouse environments require big data analytics and automated technology.
Get scientific. Hunches and gut feelings only get you so far. Retailers now need to make data-driven decisions in order to remain competitive in the global marketplace.
I would suggest one more:
Get going. It’s time to upgrade your strategies. Don’t worry – you don’t need to boil the ocean. But, you do need to get started.
Will consumer confidence continue to climb in the months ahead? NRF is predicting moderate retail sales increases throughout the summer. Either way, you’ll want to be ready.
- Darryl
