Category Archives: Management and Operations

by Jennifer Bosavage

Operational growing pains during COVID-19: Inefficiency stemming from poor data visibility

The larger a retailer becomes, the longer it takes to get simple tasks accomplished.

Whether it is an associate’s inability to quickly respond to a customer’s product feature query, or the HR department’s delay in answering an employee’s benefits question, such examples are indicative of a systemic problem in providing relevant information when needed.

Then, when a global pandemic strikes, the inefficiencies resulting from operational growing pains are made all the more evident.

A systemic information problem

Inefficiencies tend to be rooted around lack of information.

A customer service agent doesn’t have visibility into the supply chain, for example, and can’t answer a customer’s question about order status.

In addition, the consequences of those inefficiencies are generally not confined to the backroom – one inventory problem can very quickly escalate to a customer service issue when a product shows up on the computer as in-stock, yet isn’t available on the sales floor.

Attempting to solve customer problems can be a frustrating process for both the employee and the customer, which may eventually lead to loss of trust and decreased retention for the business.

That threat can’t be taken lightly; according to Salesforce, 76% of customers report that it’s easier than ever to take their business elsewhere.

Gaining comprehensive visibility

A comprehensive suite of reporting and analysis capabilities is necessary to make sense of all the data a retail business collects through its various sales channels, including in-store as well as online and social media.

Customizable business intelligence dashboards and reporting tools like Retail Pro Decisions and Retail Pro Reporting deliver visibility of operational performance and exception alerts.

They are available on a wide range of desktop and mobile devices and provide not only decision-making data daily, but also a historical and trend view that offers strategic insights.

Selective archive search

Slow, inefficient archive operations force employees to struggle with storage and retrieval of in-formation that business analytics provides, stealing time from performing their core responsibilities.

Gathering too much information can be a major barrier to accessing the right information.

Some inefficiencies can be solved with archival systems that enable the easy application of multiple retention rules according to the document category.

For example, those HR records that require longer archiving periods than others would automatically be filed appropriately.

In addition, permissions are automatically allocated to those who require them according to skillset and authority.

All archived materials should be easy to access as needed.

Visibility into what?

Retailers are faced with gathering the answers to inventory questions, beyond what products are best-sellers and who is the target customer.

Such analytical questions include:

  • What products should be sold together?
  • What is the optimal shelf life is for certain products?
  • Is the pricing strategy impacting sales volumes?
  • What should the sell-through percentage be?
  • What is the stock-to-sales ratio?
  • What is the stock turn, and how many days of supply are there?

Best-in-class retailers head off problems from the start.

They understand the need for great reporting tools and the need to analyze the data, not just collect it.

They are proactive and require tools that alert them to potential problems, help them figure out root causes of successes as well as failures, and enable their businesses to be more agile so they can adapt when needed and profit from future trends.

Get answers from your data
with custom Retail Pro reports >

by Jennifer Bosavage

Consumers are watching for consistency between brand’s messaging and business reality during COVID-19

Gaining customers’ trust and loyalty is always a painstaking business.

Particularly in times of crisis, that work pays off as customers turn to the comfort of the companies they are not only familiar with, but are also aligned with on global issues.

McKinsey research has found that 64 percent of customers choose to buy from socially responsible brands.

Retailers are under scrutiny today more than ever, as customers are increasingly interested in how companies demonstrate their ethical practices in the ways they conduct business.

Customers are attuned to local, national and global issues, and their buying decisions are increasingly influenced by how retailers are responding to the world.

Indeed, customers who once wondered, “Does this company have questionable labor practices?” now also ask, “How did this company treat its employees during COVID-19?”

News reports suggest that the businesses that show concern and empathy for their employees are winning with customers.

COVID-19’s shift in retail plans and consumer behavior

The COVID-19 pandemic and periods of economic shutdown have thrust retailers into crisis mode, and into providing services that were not on the roadmap for this year — if ever.

Curbside pickup of items from bath towels to ground beef has become commonplace; even this past January curbside was something only a handful of pharmacies and chain restaurants offered.

Customers too had to change buying habits and embrace e-commerce.

The proof is in the numbers: It was, quite literally, Christmas in May as digital sales were up 77.8% year over year to $82.5 billion, tracking higher than holiday shopping levels on Black Friday and Cyber Monday, according to Barron’s.

Analysts are still watching to see whether these shifts will remain or recoil.

But during times of crisis, the way a business treats its customers can make a lasting impact.

Loyalty is reinforced with brands who show care in crisis

Consumers remember which companies contributed to their communities’ well-being.

Those that were supportive earn loyalty — and the ones that were perceived to be unsympathetic lost customers.

Customer experience leaders must not only position their companies as being socially responsive in order to attract and retain shoppers, but actually strive to embody those values.

Empathy, care and concern are part of a new currency.

Of course, delivering high-quality products and services at a good value along with providing excellent customer service will never go out of style.

But involvement in civic causes demonstrates how — and whether — the company cares about their customers.

In times of hardship, customers want to know their favorite stores are there for them and will reward those retailers with their loyalty even after the crisis has passed.

Curbside retail: here to stay, and simpler with Retail Pro Prism POS

by Jennifer Bosavage

3 retail supply chain vulnerabilities to fortify during COVID-19

Disruptions to the supply chain — beginning in China in the early days of the coronavirus outbreak — have impacted the availability of inventory and delivery times.

Customers are now often faced with significant shipping delays — sometimes as long as 14 days.

And retailers themselves are experiencing shortages from their own suppliers.

Inventories across the board have been reportedly low (and sadly not due to higher turn), and factory closures in China and other manufacturing countries mean they may not be able to restock products easily.

Retailers who have been weathering the storm with greater fortitude have discussed production schedules with their manufacturers and have an idea of how COVID-19 is impacting their businesses.

From warehouse and store employees being affected by quarantine or illness, to an over-reliance on human intervention within inventory planning, the pandemic has uncovered existing vulnerabilities within retail supply chains.

Here are 3 areas of vulnerability to fortify during COVID-19.

1: People: Be clear on protocol for employee safety along the supply chain

Offering goods and services that delight customers and entice them to return should be the goal of all profitable retailers.

But the safety and well-being of customers, staff and the suppliers that are delivering goods to your warehouses is of first importance, especially during COVID-19.

Using the Retail Pro Prism app for your receiving operations will help your team maintain social distancing.

Advance ship notice (ASN) vouchers in Retail Pro will also help speed up the receiving process, reducing employee exposure.

Retailers weathering this storm should not assume suppliers are current on specific state and countries’ health and safety policies.

Instead, they should sponsor straight-forward discussion of expectations.

That makes delivery staff feel secure and shows the entire staff their safety is a priority.

For later reference, supporting documents should be sent via email or texts to reinforce the message and ensure compliance.

Having a direct and transparent approach will help ensure both an adequate product supply to serve customers as well as a healthy customer pipeline.

2: Process: Adapt your 80/20 to align supply with demand

Some retailers have created redundant supply chains to handle quick shifts in demand, adapting the 80/20 to source 80 percent of product for low cost and 20 percent for fast response.

Quick response with volatile demand can often be sourced more locally, even within the United States.

For each of those suppliers, a direct line of communication with a designated person is critical, as is understanding who their suppliers are.

Transparency is key.

Weekly check-ins help keep everyone on the same page, as policies affecting suppliers are rapidly changing, as are supply needs, state mandates and safety protocols.

When the interests and data of retailers, suppliers, and manufacturers in the supply chain are aligned, the decision-making of each works together to help to optimize the entire supply chain’s performance.

Vendor management tools in a POS and retail management software like Retail Pro Prism go a long way toward helping retailers keep up to date records on critical vendor information, including the following:

  • Contact information
  • Account and payment terms
  • Currency defaults, especially for international suppliers
  • Trade discounts
  • Special notes and product images

3: Product: Keep reevaluating inventory costs and allocations

Cost of goods sold is rising because vendors must account for the extra time and associated expenses that are accrued with no-contact delivery, purchases of masks and gloves, etc.

With a higher cost of inventory, the types and variety of products purchased must be regularly reevaluated.

COVID-19 has changed customers’ needs and preferences, so agile inventory strategies are required.

However, just-in-time strategies may seem risky at a time when vendor shipments are generally delayed.

Allocation patterns across stores will also need to be reevaluated to account for COVID-induced purchase variations.

Use reports in Retail Pro Prism to stay up on demand flux and use the findings to adapt allocation patterns for problem stores.

Right now, retailers are seeing the value of integration between their retail management and enterprise resource planning software.

Such integrations, as between Retail Pro and SAP, allow for automated data exchange between the two tools so merchandise managers have up to date data unified in one picture of the entire business.

Fragmented data sources are always a cause for wider margins of error in ordering and allocation, but even more so during a pandemic when historical data is a less reliable source for forecasting.

A new study by WMG, University of Warwick, and Blue Yonder concludes that retailers must invest in creating supply chains with greater flexibility, visibility and automation: “Technologies such as artificial intelligence and machine learning will play a key role in helping retailers navigate future disruption, whilst still meeting customers’ expectations.”

In-depth and on-going analysis of recent shopping patterns will help retailers make more strategic decisions on product offerings, which will dictate inventory ordering.

Latent vulnerabilities existed in retailers’ supply chains prior to COVID-19 but the pandemic served to draw them out.

The added strain exposed and compounded weaknesses.

Addressing these three areas will help fortify the supply chain to last through the pandemic.

As conditions begin to plateau, retailers will be able to revisit these areas with more thought to long-term improvement.

Retail Pro Prism: Tracking inventory needs and movement in COVID-19’s accelerated Omnichannel

by Jennifer Bosavage

Retail Pro Prism: Tracking inventory needs and movement in COVID-19’s accelerated Omnichannel

Image: Polina Tankilevitch

The uptick in online sales due to COVID-19 has been explosive.

Listrak reports a 40% increase in ecommerce revenue since the United States declared a state of emergency in late Spring.

Research from Klaviyo shows a sudden spike in demand for product categories that help people make the most of time at home, such as the “new essentials” that include electronics, housewares, and office supplies.

Order values of electronics this June 15 was approximately $8 million, for example, compared with roughly $4 million one year ago.

Retailers in the home goods industry are likewise seeing an impressive increase in sales, likely because shelter-in-place laws have made people a bit more conscious of their home environments.

As demand surges, many manufacturers are finding it difficult to keep up. Retailers are faced with figuring out how to efficiently manage inventory during production slowdowns when products are in high demand.

No retailer wants a repeat of the infamous “toilet paper shortage.”

With the uptick in sales, retailers are keeping a closer watch on orders to ensure satisfied shoppers.

Having accurate inventory data is crucial to survival for retail, which is where retail management solutions such as Retail Pro Prism fit in.

Tracking inventory available for omnichannel sales with Retail Pro

Because many physical stores are not yet opened at full capacity, a greater percentage of sales are being funneled through e-commerce platforms.

However, as states and nations reopen commerce, curbside pickup and in-store purchases are being added to the mix even for non-food retail, making it increasingly important that inventory counts across channels are accurate.

But many retailers were only on the path to omnichannel when COVID-19 hit and have had to accelerate digital efforts to create somewhat of a make-shift omnichannel to fill moment’s need.

As the platform for omnichannel data connectivity, Retail Pro Prism also helps retailers fill in the gaps as they transition toward fully integrated data across systems.

Retail Pro Prism gives retailers full visibility into their inventory at each location, whether the goods are at the warehouse, in transit, in the back room, or on the sales floor.

This kind of detailed visibility gives retail managers greater accuracy in tracking inventory, helping minimize unprofitable overstocks and the opportunity cost of shortages.

Automated replenishment capabilities based on minimum and maximum values in Retail Pro also ensure purchase orders are placed in time to prevent shortages.

Integration with retailers’ ecommerce platforms gives a threefold benefit:

  1. Shoppers are given visibility into which locations near them have the products they want in stock
  2. Store inventory can be used to fulfill online orders, increasing turn and reducing the need for duplicate inventory sets, one for each channel
  3. Changes to inventory triggered by online purchases or purchases in store are automatically updated in both platforms, keeping availability accurate

Gauging staffing needs based on transaction and traffic volume

Image: Edmond Dantès

Proper inventory tracking processes not only guarantee items are on hand when requested but can also help with employee staffing.

With less shoppers in stores during COVID-19, certain support staff jobs are not being performed at the same rate, so stocking up on the materials used for those jobs isn’t imperative.

Reduced foot traffic means moving resources and shifting focus. Warehouse workers may need to adjust schedules and workloads to accommodate.

Using reports and visual analytics in Retail Pro, you can compare staffing levels to number of transactions completed per hour, including the number of items per transaction and foot traffic counts.

These kinds of data together will help determine whether an increase in staff would be needed to improve the experience for shoppers as they are coming back to your stores and wanting to find items quickly.

Levi’s: better turn even during COVID-19

Levi Strauss credits smart inventory management with helping it to remain strong during the COVID-19 crisis.

In the first quarter of 2020, the company reported inventories were 7% lower than the prior year’s.

During an investor call, Executive Vice President and Chief Financial Officer Harmit Singh said that Levi’s strategy will continue to focus on inventory management and added that a significant majority of its inventory is core replenishment.

That includes stock it can carry over into future seasons: More than 70% of Levi products are so-called “evergreen products.”

In addition, the retailer plans to increase its ship-from-store capabilities, allowing retail outlets to fulfill e-commerce orders.

When they do venture into a store post Covid-19, customers will want to see well stocked shelves and will not want to wait for shipments to arrive.

With a more proactive approach to tracking inventory and stocking shelves, retailers can keep existing customers happy — and attract new ones.

Curbside retail: here to stay, and simpler with Retail Pro Prism POS

by Jennifer Bosavage

Curbside retail: here to stay, and simpler with Retail Pro Prism POS

Thinking out of the box and providing new ways for customers to connect with retail has long been critical for businesses to maintain loyal shoppers as well as to attract new prospects.

Sometimes, circumstances such as COVID-19’s mandated social distancing are the impetus for lasting changes.

Many retailers have had some omnichannel presence, but others have had little or even no experience; both groups have had to innovate and create new ways to connect with customers during COVID-19, many of whom wanted to shop but were reluctant to mingle with the public at large.

As a result, retailers’ new strategies are catering to those unique, and challenging, requests.

At a time when many are feeling overwhelmed, retailers that can offer convenience will be rewarded by shoppers.

Curbside pickup is one convenience strategy that has been refined in recent weeks and is likely to remain long after shoppers’ fears about going into stores have subsided.

Curbside: the final BOPIS frontier

Image: Gustavo Fring

Prior to March, many large retailers offered the ability to buy online, pickup in store (BOPIS).

The strategy lets customers shop round the clock, and then during business hours take delivery of the products at the retailer.

It may save the customer some time, but it’s more likely simply enabling a “time shift”: Instead of shopping for two hours between 10 and 8, BOPIS customers might shop for an hour online at midnight, and then stop on the way home from work to retrieve the items.

However, “stopping off” used to mean find a parking spot, enter the store, find the pickup location and finish the transaction.

All those steps ate up precious time.

Simplifying curbside pickup with Retail Pro POS

Retail Pro Prism mobile point of sale

Integrating curbside pickup into the process has made BOPIS much more efficient for the customer; the pre-ordered product is simply delivered to the customer waiting in the car.

That last step makes BOPIS far more convenient, and Retail Pro Prism mobile POS makes this step more convenient for your team.

With Retail Pro Prism you get the same deep functionality on any device you use – whether mobile or desktop, Apple, Android, or Windows – so your associates can meet your customer at their car with their order, POS in hand. This is useful for orders that were reserved online and still need to be rung up.

Customers who have been shopping with you online during COVID-19 may also bring returns with them when they come to pick up their order.

With Retail Pro Prism mobile POS, your sales associate can complete the return on the spot with the customer’s receipt. If the customer forgot their receipt, you can easily look up the transaction from the system or just look up the item in your inventory and enter it as a return transaction.

You can even sign your customer up for the integrated AppCard loyalty and rewards from the curbside.

Retail to go

Image: Christina Morillo

The number of orders placed online and picked up at brick-and-mortar stores by customers rose 208% between April 1 and April 20 compared with a year ago, according to Adobe Analytics, which measures the web transactions of 80 of the top 100 U.S. internet retailers.

If retailers keep the curbside option once they fully reopen, it will provide yet another delivery channel to their most busy customers.

Texas governor Greg Abbott recently allowed nonessential retail stores to start offering curbside pickup, or, as he called it, “retail to go.”

Even before the economic shutdown, some pharmacies were offering curbside service, such as CVS.

However, the drugstore chain didn’t offer the service at all of its outlets, and it was relatively unique in offering it.

Pre-COVID, curbside pickup was nowhere near as popular as it has become.

Looking into the future, it seems logical customers will want to retain this new convenience.

Convenience is going to drive the economy in the coming months, and possibly years.

While born out of necessity, customers are going to consider a once-novel curbside service part of the “new normal” retail experience.

3 Ways to track your inventory for better sell-through

by Ulyana Avetisov

7 Data Insights to Shape Your Retail Decisions Post COVID-19

Finding Opportunities in Your Business Data With Retail Pro Decisions

COVID-19 forced retailers worldwide to pivot fast to survive this unprecedented and wholly unexpected market downturn.

From shifting to ecommerce-only and fast fulfillment strategies, to staying connected with customers during lockdowns, your ability to adapt and take assertive action is crucial for your business to survive.

Now more than ever retailers must turn to their data to monitor KPIs and get insights that will help you combat the ongoing effects COVID-19 will have on consumer mindsets and economies.

Watch this webinar to see 7 insights you need to search out now from your data to help you shape your retail decisions post COVID-19 and position you to make the most of the shopping season remaining in 2020.

Watch this Retail Pro Decisions webinar to hear:

  • Smart ways retailers adapted to stay connected with customers and maintain retail operations
  • Why every retailer should re-evaluate the extent of data driving their strategy for customer engagement and inventory management
  • How to monitor every KPI with data from your POS, ERP, CRM, e-Commerce, and other critical applications integrated in Retail Pro Decisions visual analytics software
  • What insights you need to glean from your data now to shape your decisions as you reopen and reconnect with shoppers for the remainder of 2020
Retail reopening

Reopening your stores: optimize these 5 areas first

by Ulyana Avetisov

7 Data Insights to Shape Your Retail Decisions Post COVID-19

Finding Opportunities in Your Business Data With Retail Pro Decisions

COVID-19 forced retailers worldwide to pivot fast to survive this unprecedented and wholly unexpected market downturn.

From shifting to ecommerce-only and fast fulfillment strategies, to staying connected with customers during lockdowns, your ability to adapt and take assertive action is crucial for your business to survive.

Now more than ever retailers must turn to their data to monitor KPIs and get insights that will help you combat the ongoing effects COVID-19 will have on consumer mindsets and economies.

Watch this webinar to see 7 insights you need to search out now from your data to help you shape your retail decisions post COVID-19 and position you to make the most of the shopping season remaining in 2020.

Watch this Retail Pro Decisions webinar to hear:

  • Smart ways retailers adapted to stay connected with customers and maintain retail operations
  • Why every retailer should re-evaluate the extent of data driving their strategy for customer engagement and inventory management
  • How to monitor every KPI with data from your POS, ERP, CRM, e-Commerce, and other critical applications integrated in Retail Pro Decisions visual analytics software
  • What insights you need to glean from your data now to shape your decisions as you reopen and reconnect with shoppers for the remainder of 2020

Retail reopening

Reopening your stores: optimize these 5 areas first

by Jennifer Bosavage

3 Ways to track your inventory for better sell-through

Retailers more than ever before are faced with critically evaluating their inventory to curate a selection of products that will sell quickly and reduce their inventory costs.

The longer products sit on a shelf or in a warehouse, the faster their value decreases.

Carrying costs can be between 20 and 30 percent of inventory value, which indicates too much stock is simply taking up room and not providing revenue.

Capital costs are the largest portion and perhaps the greatest burden of carrying inventory; they include the investment made in acquiring goods and the interest lost when cash becomes inventory.

There are also storage costs and service costs.

And of course, there are risks with carrying inventory, primarily that the real value of the items will decrease while in storage, waiting to be sold.

1. Watch shopper demand

To streamline offerings, companies routinely weed out what’s not moving, and focus on products — and related items — that are popular.

One of the most efficient ways to determine exactly what customers are buying is by monitoring your inventory and sales data.

That provides the data necessary to determine what customers really want.

It can also help determine what they’ll want a few months down the road; investing in an analytics expert can be a cost-effective way of understanding and acting upon the information gathered.

Retailers tend to look at revenue as the primary metric of success or failure.

But knowing what drives those sales is equally important, because that information can help formulate a strategy for growth.

The additional analytics provide a more complete picture of a retailer’s health.

2. Audit store inventory

A complete audit includes more than an inventory count of both product on shelves and back stock, as it also can include a count of damaged products; assessments of in-store displays; planogram compliance (shelf location, number of SKUs, missing or inaccurate shelf tags).

Some retailers include a summary of competitors’ strategy as well as a look of their own roadmap.

Many retailers use point of sale software like Retail Pro to track current inventory, which is crucial in determining the right balance of products to carry.

POS software provides real-time inventory visibility and helps ensure the items are available in-store or for fulfillment of online orders.

It’s also important to confirm that data visually to have an exact idea of current stock.

While it may seem old-fashioned — and certainly not a replacement for today’s technology — performing a visual inspection could find an underlying reason for the slow sales, such as poor product placement on the retail floor.

Technology like RFID can help a retailer conduct physical inventory counts in hours rather than days.

Similarly, POS software can also help retailers identify product shrinkage, which may be easily remedied by physically relocating the item or by changing loss-prevention techniques.

3.Manage turnover ratio

By effectively managing the inventory turnover ratio, cash flow is optimized.

It provides feedback that the retailer is meeting customers’ needs, and results in maximized profits.

Even and especially the largest retailers need to be aware of their inventory situations and make their stock work for them.

Not only does that result in healthier revenue, but it also ensures more satisfied customers who know that what they come for is in stock.

by Ulyana Avetisov

7 Data insights to shape your retail decisions post COVID-19

Finding opportunities in your business data with Retail Pro Decisions

Save your spot for the webinar time that’s most convenient for you!

Thursday, June 4 at 11am ET (ES) — Register here

Tuesday, June 9 at 3pm GT (EN) — Register here

Thursday, June 11 at 11am PT (EN) — Register here

PS: Can’t make it to the webinar? Register now to get the recording sent straight to your inbox!

COVID-19 forced retailers worldwide to pivot fast to survive this unprecedented and wholly unexpected market downturn.

From shifting to ecommerce-only and fast fulfillment strategies, to staying connected with customers during lockdowns, your ability to adapt and take assertive action is crucial for your business to survive.

Now more than ever retailers must turn to their data to monitor KPIs and get insights that will help you combat the ongoing effects COVID-19 will have on consumer mindsets and economies.

Join us in this webinar to see 7 insights you need to search out now from your data to help you shape your retail decisions post COVID-19 and position you to make the most of the shopping season remaining in 2020. 

Save your spot for this Retail Pro International and PA Latinoamericana webinar to hear:

  • Smart ways retailers have adapted to stay connected with customers and maintain retail operations
  • Why every retailer should reevaluate the extent & sources of data that drive their strategy for customer engagement and inventory management
  • How to monitor every KPI with data from your POS, ERP, CRM, e-Commerce, and other critical applications integrated in Retail Pro Decisions visual analytics software
  • What insights you need to glean from your data now to shape your decisions as you reopen and reconnect with shoppers for the remainder of 2020
by admin

Reopening your stores: optimize these 5 areas first

Stores are starting to reopen across the world, and we are watching this very, very carefully. 

We’re learning a ton of new things while watching what they are doing, because some of these stores are doing excellent business. 

In some cases, they are exceeding last year’s numbers!  Let’s take a look at what the most successful retailers are doing to make this happen. 

Overall, you have to approach opening as if you were opening for the first time. 

It has to have that level of excitement, that level of enthusiasm. 

So my first, best advice to you is to get super pumped up about opening! 

1. Store Presentation and Layout

This is the perfect time to reassess your store’s layout and shop-ability. 

You certainly want to organize your store so your shoppers can maintain the proper social distance from each other and still see all the great merchandise you have in stock. 

Here are some tips you can apply:

  • Start at the front door, and look inside your store as if you’re visiting for the first time.  Can you see all the way to the back wall? Can you identify key areas that you want to go to to see the merchandise?
  • The most important real estate in your store is the immediate right. Do we have some of our best merchandise there?
  • Many stores are putting markers on the floor that direct people through the store, creating a path to follow, much like grocery stores or Ikea have done. The benefit of this is that when your shoppers walk the path, they can see merchandise they might not have seen.  This is creating add-on sales!
  • As you walk the store, make sure your displays make people want to stop and check out the merchandise. Make the displays compelling with cross-merchandising, props, bundles, and multiple levels.
  • From each display that causes a shopper to linger, where will they go next? Merchandise your displays that lead the customer through the store, directing their eyes to the next great display of merchandise.
  • Signage is super important. Yes, you want to have signs that remind people to obey social distancing, but they don’t have to be negative or serious. A western apparel store put up signs that say, “There should be a cow’s distance between us!” Another store posted a sign that said, “If you can read the label on my jeans, then you’re too close!” Make it fun!
  • This is also a time to ensure you have excellent lighting that shows off and spotlights your great products.

2. Marketing

For many years, I have said that marketing should have a two-word definition, which is “Creating Demand.”

That means that any messaging you send out, whether it be by email, social media, or texting, should first be checked to see if the message makes anyone want to come to the store or the website, or to find out more.

If it doesn’t, rework it until it does.

  • I think the best messaging for reopening is, “We are back, we are safe, and we are ready for you!” Customers need to feel like you are welcoming a long, lost friend to the store.
  • Show them in your videos (you ARE doing videos, right?) and posts how you are working hard to keep the store clean, safe, and fun. 
  • There is a lot more activity in social media and emails now. More retail stores have had to quickly open up e-commerce sites, and the only way to promote those was to send out tons of social media posts and videos, and emails. So it’s noisier out there, and to compete you have to generate as much activity as everyone else. That means 2-3 emails per week, multiple posts on social media every day, and at least a couple of videos.
  • While I’m talking about videos, did you know that YouTube is the #2 search engine on the planet?  That means that you need to have your own YouTube channel, post all your videos on there, and make sure you tag them properly so people can find and watch them, and want to come to your store.

I have to confess that up until recently, I was not doing much with hashtags in social media. 

But I have come to learn that they are the best, most direct path to getting more customers to follow you. 

That said, they have to be the RIGHT hash tags – in other words, “#clothing” is not going to help you, but “#darkwashskinnydenim” will. 

Look at other stores and brands that you admire and take a look at their hashtags. 

Incorporate those into your posts and see if they get you more likes and followers. 

3. Staff

As you open your business, you’ll also need to give careful consideration to your staff’s needs and your personnel needs as well. 

  • Keep in mind that with social distancing, you may not need as many people on the floor as you did previously. Also, your store may have different hours now. So first, consider what you really need in terms of floor coverage, and then deal with any employee issues.
  • Some of your staff may be reluctant to come back. It may be that they are scared of the virus and don’t want to return. It may also be that they are enjoying the extra money they’re getting while on unemployment. This is all understandable, but you cannot be held hostage this way. Retailers who have faced this have had to get new staff, and you may have to do the same. 
  • The ones that do come back will need some additional training. First, they need to learn some new procedures in the store, especially regarding cleaning. We need to show customers that our stores are clean and safe, and so your employees will need to know how to clean and which areas to clean. Of special concern for apparel retailers is the dressing room. It needs to be cleaned between visitors, and I would recommend posting a log inside the dressing room that shows how often the dressing has been cleaned. 
  • Staff will also need to be trained on how to sell from 6 feet away. How do they still engage with customers, make recommendations, and lead them to the purchase?  Certainly, one of the things I think they’ll need to work on is how to move the conversation from the awfulness of this pandemic, to positive things. It’s something they need to drill before you open.

4. Selling

The politics of salesmanship are yet another challenge we have to get past. 

Scroll through social media for 2 minutes and you’ll see tons of divergent opinions about how this whole situation should be handled. 

  • Some of your customers are going to be worried about being out. Make sure they feel warmly welcomed, and make sure they see that you are cleaning the store, that you are safe, and that it’s OK to be there.
  • Other customers will want to completely ignore that there is a virus at all. Be careful about any customers who do not obey social distancing, for this reason only: you could freak out other customers who see it, and that could get you a nasty scene on the sales floor, or a nasty online review.
  • Lots of stores are stepping up sales by setting appointments to visit the store. An appointment is almost a guaranteed sale, because you wouldn’t make an appointment unless you had a strong interest in buying product, right? 
  • Products that are touched by customers need to be cleaned. Garments that have been tried on need to be steamed, and everything needs to get looked at to ensure safety. This is part of what your employees need to show customers on the floor – that we are safe, and the merchandise can and should be touched!

We are seeing a large variety of methods of selling right now. It’s a broad topic and way beyond the scope of this post.

The most important thing I can tell you is that we’re all learning how to sell in this new era, and there will be lots of tips and tricks coming. 

5. Merchandise

Frankly, the absolute most important thing in this blog post is a discussion of your merchandise.

Having the right merchandise is the key to your survival.

  • First, look at your Spring merchandise. We think Spring will be extended by a month or so, since people have not seen a lot of the merchandise you received when then lockdowns started. Look carefully at what you have and what’s on order. Talk to your vendors and find out if they still have goods and negotiate for discounts on whatever they have left, but only if your Open to Buy plan (you do have one of those, right?) tells you that you need it.
  • Fall goods could be tricky. We’re already hearing that many manufacturers are not able to produce their typical Fall production because of the shutdown. Start talking to your vendors about Fall and see who can and cannot ship, and how that will affect your assortment plan.
  • Most importantly, you need a sales plan that you believe in, coupled with an inventory plan that enables you to turn goods even faster than you ever have. In all of our merchandise planning and open to buy planning, we are putting together models that ensure positive cash flow through proper sales forecasting using algorithms and artificial intelligence. Cash was always king, but now, it’s super-king. Make sure you have a solid plan to get you through the rest of this year!

One last thing, which is really, really from my heart. I believe in independent retail. I believe in you. Every politician says that small business is the backbone of our economy, and that’s true. 

That said, small businesses are the people who build communities, who take leadership roles to give everyone a better life.

To that degree, you are more than the backbone of the economy, you are the backbone of society itself.

As such, your survival is hugely important! 

And you can do it, if you apply these first tips that I’ve listed here. 

So go for it. Make it happen, for you, your family, your community, and for the future for all of us. 

We all stand with you, and we’re cheering you on!

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Guest author: Dan Jablons
Management One
Retail Smart Guys