E-commerce boom, digitization of processes, change in consumer habits… The health crisis has greatly disrupted the retail industry. To meet the new needs of their customers, companies in the sector have been led to develop a number of new marketing, sales and logistics practices. However, this “New Retail” comes with some managerial challenges and issues to be taken into consideration.
What is New Retail?
New Retail is a business strategy that consists of a fusion of online and offline commerce. This is a very recent practice, which appeared during the health crisis, and which tends to develop more and more in the wake of the pandemic.
This sales technique combines online and offline, integrating new technologies into physical stores, with the aim of optimizing the customer experience and operational efficiency.
It is also referred to as “phygital” or web-in-store. This The omnichannel customer journey combines the advantages of proximity, human customer service with the advantages of digital technology.
What are the practices of New Retail?
Here are a few examples of New Retail trends that are shaping the future of retail:
- The use of digital tablets to allow salespeople to easily find the information requested by customers;
- Labels with QR Code to obtain information about a product;
- The implementation of digital checkouts to facilitate the act of purchasing and reduce waiting;
- The installation of connected fitting rooms with interactive mirrors to view the garment or accessory on you without having to wear it;
- The implementation of interactive terminals to allow customers to discover the entire range of products, consult reviews and technical information while shopping;
- Click & collect, which allows you to reserve a product online and then pick it up in store;
- The use of new technologies (artificial intelligence, Big Data, etc.) to get to know customers better and optimize their shopping experience;
- Dark stores (or quick stores): micro-distribution warehouses for local e-commerce, which offer extremely short delivery times;
- The implementation of digital tools to improve customer loyalty (loyalty programs, customer testimonials, etc.).
What are the managerial challenges related to new retail?
According to a Oney and OpinionWay study, 70% of brick-and-mortar shoppers would use their smartphones to compare prices and view in-store product reviews. And 91% of French people consider that Human presence is very important in their buying journey.
These figures demonstrate the complementarity of digital and human and prove the attractiveness of hybrid commerce. The attachment to the physical store therefore remains very deep-rooted, but digital has also become an essential factor in the success of the customer experience. According to an LSA / HiPay study, nearly 70% of consumers say they are ready to change brands if it does not offer a cross-channel journey.
It is therefore essential for retail players to take an interest in the digitalization of points of sale.
However, this transition to New Retail comes with a number of challenges and managerial issues.
Indeed, managers must activate large-scale change management , which involves many adjustments. In particular, they must:
- Adapt their management style to develop the spirit of innovation, to promote collective intelligence and agility within the company;
- Placing innovation at the heart of the managerial culture;
- Improve the operational excellence of the teams to meet the new expectations of the consumer;
- Overcoming resistance to change ;
- Adapt the traditional supply chain model ;
- Training and raising awareness of the challenges of new retail and emerging challenges in customer relations…
The interim manager, an ally for your transformation towards New Retail
To support you in the managerial challenges related to the development of New Retail, it will be very wise to call on an interim manager specialized in the retail trade.
At WAYDEN, we mobilize, among our network of 8,000 interim managers, a highly qualified expert in the retail sector , specialized in your business (ready-to-wear, luxury, large distributors, supermarkets, department stores, etc.).
Immediately operational, this seasoned professional, with a career spanning 15 to 25 years, will join your company for a specific period of time and support you in achieving your objectives, whatever your problem: improving the in-store experience, standing out in a highly competitive sector, positioning yourself as an omnichannel brand, etc.
