The rising interest rates and credit squeeze mean significant things for retailers. With less disposable income to spend, customers are becoming that much more selective.
As such, retailers need to start using their IT software that much more effectively. Instead of turning all their attention to retail as an alternative channel then, Jeremy Waterman, MD: Softline ACCPAC, believes solution providers need to look at the opportunities that have developed in the retailer space, and make full use of these.
Thanks to the interest rate hikes, the retailer space has just become that much more competitive. With margins already exceptionally slim and sales targets not budging in the slightest, retailers have to innovate in terms of their systems and processes like never before. While this has a definite impact on their IT budgets, the irony of the current situation is that in some cases retailers should look at investing in order to save. Although renewing IT systems might take a backseat, retailers need to take a long, hard look at their efficiencies and how to improve these. One of the best ways to do this is often through software solutions.
Point of sale (POS) is the perfect example of an area where an IT solution can add infinite value in retail. Investing in sophisticated software will enable a retailer to move beyond the front-end of its store and integrate all the way through to operations. This is because a successful POS strategy is not just about cash registers - but rather about driving efficiency. An integrated POS software system will ensure a retailer has the right merchandise in its stores, at the right price and at the right time. This is because it enables communication between stock and financials.
While the ability to fully understand the buying patterns of customers has always been crucial in this space, with these patterns now being adjusted thanks to the credit crunch, retailers need to "know" their market like never before. They need to anticipate wants and needs, and stock their shelves accordingly.
Adding certain tools onto a basic system will enable this - where opportunities for software vendors start to become apparent in this space. Softline ACCPAC's retail management suite, including Purchase Order Projections, Inter Branch Transfers, Price Manager and Rapid Order Entry tools is an example of a cost-effective solution that can drive efficiency. In the case of Rapid Order Entry alone, this off or online solution keeps a sales team in touch with all customer data while processing all the important orders. Price Manager, on the other hand, will allow full line discounting, as well as approvals so a chain can control its GP% margins. By presenting a store's management with stock items in grid format, they will be able to analyse across multiple variables, as well as track price fluctuations. PO Projections and Inter Branch Transfers provide access to historical sales data, allowing accurate forecasting and efficient stock allocation to individual branches.
Instead of just seeing retail as an alternative channel for the distribution of your IT software and products, I suggest vendors turn their attention to the retail space itself. With the credit squeeze starting to be felt acutely in this sector, if you can prove your software solution will add definite value, I believe you might just have found yourself a completely captive market.
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