Retailer Growth Hacks in the Face of Recession
The retail landscape has been shifting recently due to the looming possibility of a recession. However, retail leaders must continue to drive scalable and sustainable growth, even in challenging economic times. According to a recent news report, Target's chief growth officer, Christina Hennington, said at an investor event in New York, "In an environment where consumers are making tradeoffs, more of the same is not going to get it done.”
By empowering people through technology, retailers can make a measurable impact on the bottom line and help lead their organizations during difficult economic times.
In this post, we'll explore some growth hacks that retailers can use as a starting point for driving performance.
Leverage Digital Channels to Stand Out in the Marketplace
In today's digital age, retailers must leverage digital tools and channels to stand out in the marketplace. By using technology, retailers can gain a competitive advantage in terms of both customer engagement and sales.
One way is to enhance the user experience of their websites and eCommerce sites. Customers want to shop quickly and easily, so an online experience that is easy to navigate and intuitive to use can increase conversion rates.
Social media is another powerful tool that retailers can use to connect with their audience. Retailers could stand out by forming partnerships with influencers, generating original creative content, or introducing gamification into their social media strategies.
Use a Multichannel eCommerce Platform
One powerful growth hack that retailers can use to drive performance is utilizing a multichannel eCommerce platform. These types of platforms allow retailers to reach customers through multiple channels and touchpoints, which extends their reach and increases the likelihood of converting leads into sales.
A multichannel eCommerce platform provides retailers with a centralized hub for managing product listings, order fulfillment, and customer service across various sales channels. By connecting sales channels such as online marketplaces (like Amazon or eBay), social media platforms, and owned eCommerce sites, retailers can increase their exposure and diversify their revenue streams.
Some platforms even provide retailers with valuable data insights that can be used to optimize their sales strategies. Retailers can track performance metrics like conversion rates, customer lifetime value, and customer acquisition costs across different channels to gain a deeper understanding of their target audience.
Furthermore, much of today's web and eCommerce activity is now happening on mobile devices, so having a mobile app or responsive website is more important than ever. Retailers can use this platform to reach customers on the go, allowing them to browse and purchase products wherever they are. For example, customers could create shopping lists, pay for items, and then pick them up on their own time.
Invest in Process Automation
Process automation is pivotal for retailers during a recession as it can help improve efficiency, reduce costs, and boost profitability. Many retailers often face difficulties in managing their operations during hard economic times, and automation can provide a way to streamline their operations and remain competitive.
By automating repetitive tasks such as inventory management, order processing, and shipping, retailers can free up time for their employees to focus on more critical business tasks, leading to increased productivity and overall performance. It also increases the accuracy of data entry and reduces the risk of errors, increasing the quality of the entire operation.
Automation doesn't just benefit large retailers. Small-to-medium-sized enterprises (SMEs) can also significantly benefit from automation, and cloud-based automation platforms can provide them with the same features and functionalities as enterprise-level systems, at a much lower cost.
Use Smart Inventory Management Systems
During a recession, retailers face numerous challenges such as shifting consumer behaviors, reduced demand, and disruptions in supply chains. Amid these challenges, retailers must find ways to remain competitive, reduce costs, and maximize efficiency. One solution that can help retailers overcome these challenges is a smart inventory management system.
Smart inventory management systems allow retailers to optimize their inventory levels, reduce waste, and improve their supply chain management. With these systems, retailers can gain insights into their inventory data, such as how fast products are moving and when they're likely to run out of stock.
Retailers can also use advanced forecasting and analysis tools to predict consumer demand and adjust their inventory levels accordingly. By optimizing inventory levels, retailers can reduce the amount of inventory they hold in stock, freeing up warehouse space and reducing costs associated with inventory holding.
These types of systems are also designed to help users control their supply chain costs. They are especially important for food and grocery retailers, as they help to reduce the amount of product spoilage and waste. By tracking expiration dates, for instance, retailers can reduce the likelihood of unsold products expiring and going to waste.
Finally, smart inventory management systems can automate key tasks such as ordering, receiving, and shipping products. This can reduce the time and labor needed to manage inventory and enable retailers to allocate resources to more critical business tasks.
Build a Stronger Partner Network
If retailers feel that there is a recession looming, it may be time for them to audit their current partnerships with suppliers and service providers. It may also be a good time for them to form closer relationships with critical suppliers and other partners, including creative agencies and technology providers.
By building a stronger partner network, retailers could gain access to better pricing on key products and services, allowing them to remain competitive in a recessionary market.
Don’t Miss the Next eTail Canada Event
A recession isn’t guaranteed, but according to Rodney McMullen, CEO of Kroger, "What consumers are telling us, they’re already behaving like they’re in a recession.” Major retailers are already rolling out their recession playbooks for review.
To learn more about how your company can thrive during difficult economic times, don’t miss the next eTail Canada event. It’s happening from September 27th to 28th at the Hyatt Regency Toronto in Toronto, Ontario.
Download the agenda and register for the event today.