The retail sector has shown remarkable resilience during the pandemic, finding ways to deal with the crisis. The key to the most successful responses was agility. Agile minds and business models were essential at a time of profound change.
Successful retailers are operating with ever greater levels of agility, responding to the crisis in new and different ways, whether it's in delivery options, new supply chains or the way their own employees work, through remote working.
The most significant obstacle to effective planning is an uncertain future. One of the main headaches retailers face is not knowing whether customers will return and, if they do, through which channel, for example, in-store, online or click and collect.
This applies both to businesses that were considered essential during the lockdown, especially supermarkets and pharmacies, and to all the others. Contingency planning has never been more important, as nothing can be taken for granted.
In addition, planning and organizational functions throughout the retail sector are now having to adapt quickly to a possible second lockdown.
Retailers need to adjust to much shorter planning cycles, as they can no longer predict with certainty what the near future will bring, what government advice and laws will be and how this will affect consumer behavior.
This means adopting the right technology that can provide the agility, data analysis and insight that retailers need. Tools that offer a 360-degree view of the business, providing information on finances, HR and operations, the efficiency of employees' remote work and making planning more intuitive and effective.
Weathering the long storm
The digitalization of business operations has been a great help at a time when employees continue to work remotely.
This allowed, for example, the administrative teams to deliver important documents to a workforce that was dispersed between licensed workers, people working from home and frontline employees.
Ultimately, it reduced the operational workload, the pressure on managers and increased efficiency throughout the organization.
In fact, retailers are living through the biggest challenge in a generation and there are no signs of this abating. How they adapt to the huge disruption presented by Covid-19 and the possible second lockdown in the run-up to Christmas could lead to the ultimate success or failure of their businesses.
And there is no single magic formula that will solve all the many problems the industry now faces. Simply moving one more business online or closing a few stores to make cost savings won't be enough.
Creating an attractive, differentiated value proposition that appeals to customers and is based on technology is fundamental. Achieving this will be difficult, but planning in an agile and intelligent way will be a big part of it.
Be prepared for Christmas to be a little different this year
There is clearly a challenge for retailers to get their lion's share of consumer spending this year, because there is a smaller pie to reach.
Retailers will have to work hard to engage with customers and draw them away from competitors, but they must also rely on technology infrastructure to ensure they don't disappoint customers before the big day, he adds.
Most people already understand that this probably means a smaller family gathering for the Christmas holidays and a year without any big get-togethers.
But as shoppers start making their lists for Christmas Day with all the decorations and gifts to sit under the tree, they are also preparing for a different Christmas shopping experience than usual.
Meanwhile, shoppers are turning to online Christmas shopping as the threat of the virus persists and forced lockdowns threaten to close many gift stores. According to Accenture, 80% of shoppers plan to shop online this Christmas, which will increase the pressure on retailers' service networks as well as their margins.
It's not too late, if there is an opportunity in the coming weeks, retailers should work on curating their products on their website and their IT structure for support, helping customers find the right gift and structuring the process to make it easier.
Conversys can help your company reduce the risks and impacts of this global crisis. Contact our experts now and find out about Aruba Networks' security, network management and connectivity solutions. We are on hand to help you overcome this challenge.
About Conversys
Conversys IT Solutions is a provider of Information and Communication Technology services and solutions operating throughout Brazil.
With a highly qualified technical and commercial team and a network of partners that includes the main global technology manufacturers, Conversys IT Solutions is able to deliver customized IT and Telecom Infrastructure solutions to clients.
We invest in our employees and partners and strive for a long-lasting relationship with our clients, because we believe that this is how we gain the skills and knowledge we need to innovate and generate value for the businesses in which we operate.
