One of the keys to retailer profitability is availability. Put simply, if a product is not on-shelf in store, then it is a lost sales opportunity. Failure to deliver is likely to result in consumers either taking their business to another retail outlet, or more likely, ordering from a rival digital channel.
Innovative retailers are using RFID technology as a common fabric across many of its merchandise- centric applications to gain real-time insight into merchandise status and to take necessary steps to anticipate and reduce out-of-stocks. In this final series installment, we’ll take a look at how Checkpoint Systems has developed an innovative and efficient approach to this problem.
In Part 1 of this discussion on how retailers can reduce out-of-stocks and improve merchandise availability, we discussed the new market realities facing retailers, including tighter margins, shifting shopper behavior and the need for hyper-accurate inventory availability status. In this installment, we cover how innovative retailers are taking an integrated, intelligent and insightful approach to addressing issues related to inventory management and shrink management in a cohesive manner, often using RFID technology to achieve their most important goals.
Retailing has always been a tough business, marked by demanding consumers, tight profit margins and intense competition. Retailers – even the most successful ones – also have had to confront and overcome various operational challenges such as managing inventories, controlling shrink, representing their brands in an innovative and attractive manner and maximizing every square foot of selling space, while improving shoppers’ experience.
Imaginarium, a leading retailer of products and merchandise for early childhood education and children’s toys, likes to bill itself as having “the prettiest toy shops in the world.” But Imaginarium is savvy enough to recognize that aesthetically pleasing store environments do more than attract shoppers and their children: they also can attract potential thieves.
In this case study from Checkpoint Systems, a leading Spanish supermarket network adds antennas and high-theft solutions as part of its store refurbishment program.
Prénatal, a leading international retailer of maternity, infant apparel and merchandise, has expanded its in-store shrink management capabilities by working with Checkpoint Systems for its stores in Italy and other European nations.
For major retailers partnering with the apparel industry’s top designers, no detail is too small. Every pattern, every stitch, every presentation of the designer’s brand image must be perfect.
Shrink is a significant problem in France, representing an annual loss of $6.6 billion (4.9billion Euros), or 1.4 percent of French retail sales, according to the 2011 Global Retail Theft Barometer. Système U has been a pioneer among French retailers in protecting wines and alcoholic spirits in their supermarket stores, using Radio Frequency-based EAS antennas and source tagging solutions.
Have you heard of the management technique known as the sandwich principle? It’s a simple communication method I learned from a mentor. In brief, if you have constructive feedback to convey to someone you’re managing, it’s always a good idea to start and end conversations on a positive note.
By Ryan Bradshaw, Adjunct Faculty Member, Retail Management at American Public University
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