New Retail and the transformation of management issues

Whether it is the boom in e-commerce, the digitalisation of processes, or changing consumer habits, the health crisis has powerfully changed the retail industry. To meet the new needs of customers, retail companies have had to develop a range of innovative marketing, sales and logistics practices. However, this New Retail comes with some managerial challenges and issues that need to be considered.  

What is New Retail?

New Retail is a business strategy that fuses online and offline commerce. A very recent practice that emerged during the health crisis, New Retail is tending to develop more and more in the wake of the pandemic. This sales strategy combines online and offline, integrating new technologies in physical stores, with the aim of optimising the customer experience and operational efficiency. Also known as phygital or web-in-store, this omnichannel customer journey combines the advantages of  local, human customer service with the benefits of digital technology.  

What are the practices of New Retail?

The following are some examples of New Retail trends that are shaping the future of retail:

• The use of tablets to make it easy for sales staff to find the information customers need.
• QR code labels to find out more about a product.
• The installation of digitalised checkouts to facilitate the act of purchasing and reduce waiting times.
• The development of connected fitting rooms with interactive mirrors so that customers can visualise a garment or accessory on themselves without actually trying it on.
• The integration of interactive terminals allowing customers to view the entire product range, or to consult reviews and technical information while shopping.
• Click & collect, whereby customers reserve a product online and then pick it up in store.
• The use of new technologies (artificial intelligence, Big Data, etc.), to better get to know customers and provide them with an optimal shopping experience.
• Dark stores (or quick stores): distribution micro-warehouses for local e-commerce, which offer extremely short delivery times.
• The use of digital tools to improve customer loyalty (loyalty programmes, customer reviews, etc.).

 

What are the managerial challenges of New Retail?

According to a study by Oney and OpinionWay, 70% of shoppers in traditional shops use their smartphones to compare prices and consult reviews of the products in store. Further, 91% of French consumers consider the presence of a human being to be a very important part of their shopping experience. These figures demonstrate the complementarity of digital and human presence and prove the attractiveness of hybrid commerce. The attachment to the physical store remains very strong, but digital has also become an essential factor in the success of the customer experience. According to a LSA / HiPay study, nearly 70% of consumers say they are ready to change their retailer if the latter does not offer a cross-channel experience. It is therefore essential that retail players take an interest in the digitalisation of points of sale. However, this transition to New Retail is not without certain managerial challenges and issues. Managers have to implement a large-scale change management process, which implies numerous adjustments. In particular, they must :

• Adapt their management style to develop a spirit of innovation and to encourage collective intelligence and agility within the company.
• Put innovation at the heart of the managerial culture.
• Improve the operational excellence of teams to meet new consumer expectations.
• Overcome resistance to change.
• Adapt the traditional supply chain model.
• Train teams and make them aware of the challenges of the new retail environment and the emerging challenges in customer relations.

 

The interim manager, an ally for your transformation towards New Retail

To help you tackle the managerial challenges associated with the development of New Retail, it is wise to enlist the support of an interim manager specialised in the retail business. At WAYDEN, we can mobilise among our network of 8,000 interim managers a highly qualified expert in the retail sector, specialised in your field of activity (ready-to-wear, luxury, large distributors, supermarkets, department stores, etc.). Immediately operational, this seasoned professional with 15 to 25 years of experience will join your company for a specific period of time to help you achieve your objectives, whatever your issue: improving the in-store experience, standing out in a highly competitive sector, positioning yourself as an omnichannel retailer, etc.