Reduce Retail Operating Costs with our Indirect, Procurement & Supplier Retail Cost Optimisation Solutions
Overview
The evolving COVID-19 situation is complex so a considered and well managed response by retailers will have a major bearing on how well they ride the waves.
Retailers should see this an opportunity to out-perform their less agile competitors and build the foundations of a more digital, nimble business for the future.
In many countries retail is already a troubled sector, with declining consumer demand and the threat from online and discount models.
When Covid-19 hit it essentially split the retail sector into winners and losers. While areas such as food retail thrived, non-essential retail all but ceased. The question for retailers is whether they can flexibly respond to these different challenges in an agile way, adapting their operations and commercial decision making rapidly to reflect the new day-to-day reality.
For food retailers, can they manage the increase in demand? Will their supply chains prove resilient? Will others adapt and adopt new technology to thrive in the ‘new normal’?
One thing is for certain, the old theory of building more and more stores when sales do start to improve is likely to change significantly. The new high street, already much different from how it looked 20 years ago, is going to change drastically again in the next few years. But the retailers that adapt and continue to bring value to the consumer will thrive. While it’s early days, I’m already seeing signs that some of those retailers have a rosy future.
Learn more about our Retail Cost Optimisation Solutions
Insights
Case Studies
Explore our guide for Rebooting Retail
Download the Retail Solutions Brochure
Our Retail Solutions brochure explores the top challenges facing retail organisations and provides a wide range of our insights and actions you can take within your own business.
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Introduction to ERA Group Retail Solutions
ERA Group provide a wide range of industry solutions to help and support our clients in achieving their goals. Here, Keith McGregor explains some of the ways ERA Group Retail Solutions can help your business, including some of the common challenges faced within the retail industry. To learn more, download our Retail Cost Optimisation Solutions guide today.
“Retail is undergoing a massive change, and there is a chance for new leaders to emerge and older brands to reinvent themselves.”
Retail Industry Insights
Internationalisation & Evolving Models
The web as a platform has provided a viable means to reach global audiences, seeing businesses take their stores online in an effort to widen their activities and increase their profitability. Product diversity has amplified with the internet, allowing customers to benefit from an array of retailers to purchase goods from; this shift, however, has ultimately caused higher competition in the marketplace for attractive price points that encourage brand loyalty.
Regulatory & Consumer Expectations
Customer expectations have risen over time, with products expected to be high-quality regardless if it is branded, private or exclusive labels across all of their channels. This means that retailers are often left accountable for the supplier’s quality with review systems and social media comments enough to sway consumers to buy or not.
Technological Disruptions
The advancement of technology is allowing companies to implement efficient resource management and gain invaluable insights for future developments. Retailers, however, may struggle in expansion if the IT solutions are not tailored to every market accessed, allowing for more concise strategic planning at a globalised level and clear training across the board. This doesn’t mean that companies should get complacent with specific software, particularly as technology continues to advance.
Profitability & Supply Chain Issues
As consumer expectations of service rise, retailers are struggling to deliver because of the complex and disjointed supply chains. Competition, nowadays, is not just between brand and brand, but in the effectiveness of the supply chain to deliver, therefore making supply chain management a crucial part of retail success. This can be difficult when transparency practice, trade experiences and supplier knowledge varies depending on countries you are operating in.
"Future-proofing retail has never been so prevalent as the geopolitical scenes rapidly alter the nature of trading relationships, currency values and consumers spending habits."
Paul Smith Case Study
“I am really impressed with not only the profits achieved, but also the depth of analysis work carried out by the team.” Ashley Long, Financial Director Paul Smith.
Ashley Long, Finance Director of Paul Smith Ltd, is constantly looking for ways of improving the already impressive profitability of the company.
With sales of over £150m worldwide, of which over 60% are overseas, this design-led business, which started in Nottingham in 1976, is now a large organisation employing over 700 people.
Ashley Long initially engaged ERA Group to review Packaging, Merchant Card Fees and Stationery/IT consumables. Savings were achieved in all areas – ranging between 13-38%.
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DFS Case Study
“I could not recommend ERA Group highly enough: they have helped us reduce costs massively; they have worked with us to achieve ISO 14001 accreditation; and we have just learnt that our Head Office of 350 people has reached zero to landfill.” Phil Johnson, Head of Environmental Services, DFS.
Furniture giant’s ‘Zero to Landfill’ target inspires and supports many ERA Group initiatives across its Head Office, stores, warehouses and factories.
DFS was founded in 1969 with a single store near Doncaster and has since grown to become the clear market leader of upholstered furniture in the UK. Today DFS employs more than 3,500 people and operates over 100 retail stores in the UK, the Republic of Ireland and the Netherlands, a comprehensive online channel, and three upholstery factories in the UK.
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"Consumers expectations for low-prices and high-quality compared with the rising costs in production and distribution is making it harder for retailers to sustain profitable forecasts."