Retail slowdown: Technology supports improved performance

Retail is one of the first industries to feel the immediate effects of lower disposable income and reduced consumer demand. At the same time, the typical retailer runs a labour-intensive operation, where operating costs are fairly fixed. Technology that supports greater efficiencies in the retail operating environment, therefore, become more attractive because they offer a measurable return on investment.

These realities, says Regan Atkins, managing director of point-of-sale solutions provider DigiPoS, make a strong case in particular for standalone or smaller chains of retailers looking to improved profitability. “Solutions which support efficient business processes, reduce the requirement for staff training and deliver performance which provides for the rapid processing of customers are available and affordable. The benefits of such systems typically deliver a return on investment in terms of being able to provide a better customer experience and improved management of the retail operation,” he notes.

Atkins points out that large retail chains have enjoyed solid growth over the previous five years; many have invested in point-of-sale and related solutions to ensure their business processes are optimised and the cost of processing customers rapidly is kept to a minimum.

“Many of the smaller operations may not yet have considered such solutions. In the formerly buoyant economy, it might simply not have been worth it, as the tills were constantly ringing,” he says.

Changing economic circumstances not only means customers are fewer, but also that they are more discerning on spending. “This requires that these retailers examine their profitability. Either costs have to be reduced, operations need to be more efficient or prices have to go up - and the cash-strapped consumer is unlikely to appreciate the latter,” Atkins points out.

He says smart retailers are investing in technology that automates many labour and time-consuming elements of retail business processes such as stock control. “The introduction of such technology also allows for these retailers to reduce the need to constantly find and train new staff as the headcount is reduced; good systems are also very easy to use, providing for any new staff members to quickly get up to speed.”

Atkins nevertheless stresses that while technology supports improved processes, it does not replace them. “For example, stock-takes will never go away. However, instead of physically counting stock, purpose-built stock-take scanners can be used. Better than a clipboard, these scanners shorten the process and provide for automated updates of information directly into the stock-take module of the application software. Greater accuracy is achieved and less time is spent physically spent on stock-takes, which provides the return on investment,” he points out.

Additionally, Atkins says quality retail solutions are designed with meeting the demand for improving retail operations. By implementing technology, labour intensive processes are streamlined.

He does believe that retailers should look for high quality, proven products and solutions if they are to enjoy a quick return on investment. “Examine the options from the perspectives of where it is manufactured, what support and warranty structures are in place and the availability of spares, backup and expertise. These are all key factors in determining that the return on investment and improved operational performances are achieved.”