In the ever-evolving retail realm, a seismic shift has been occurring. One that slowly eats away at confidence, performance and optimism. The convergence of disruptive forces has been nothing short of jarring, even for the most seasoned industry leaders.
Have you noticed the gloom and doom narrative that is constantly in the media, every passing conversation and a general weight in the retail-sphere? It’s hard to avoid and even harder to get everyone to pull up their socks, smile and chart a course through it. But we have to - positivity and a mindset shift are more necessary than ever. 🤗
Consumers are redefining their browsing habits, abandoning loyalties, demanding swiftness and sustainability and radically shifting their spend based on their confidence or ability to spend (aka cost of living crisis). Employees seek workplace flexibility, and in a market where supply exceeds demand we are seeing a stark contrast to retail's traditional rigidity. Yet, investors still expect profitable growth, meaning leadership around the world in retail is playing musical chairs and what constitutes “as retail” continues to blur boundaries.
This upheaval demands a radical retail mindset reset and a playbook that charts a course through the constant change and will position retailers for success in the decades ahead. One laced with a consistent formula for positivity. Why? The actions undertaken in the next two to three years could prove pivotal, shaping the industry's trajectory for the next twenty. And yes, I am suggesting a reimagining of long-standing beliefs and practices will be the key.
There are attitudes, behaviours, values and actions which can change based on context. And in understanding and adopting new ways of approaching this through an adaptive retail mindset could unlock both business energy, optimism and perspective to make fundamental change.
This was the key theme at our recent Retail Breakfast Briefings: ADAPTING TO GROW 2024 AND BEYOND which were held in Christchurch and Auckland. Here we explored Adaptive Retail as a new mindset and leadership platform, but for those of you who couldn’t attend, and as a reminder for those that did, here is the lowdown.
What is Adaptive Retail Mindset
We probably all acknowledge that the traditional paradigms that once defined success are no longer sufficient. Remember where we could stack it high and watch it fly? Today’s consumer demands a level of personalisation, convenience, and seamless integration which transcends the boundaries of any single channel or touchpoint. And this introduces a new way of framing retail – simply as adaptive retail.
Adaptive Retail represents the evolutionary step in the retail journey, where the lines between online and offline blur even further, and the customer's needs become the guiding force behind every strategic decision.
The advantages we now have of leveraging cutting-edge technologies and data-driven insights, allows retailers to create a dynamic, responsive, and highly personalised shopping ecosystem.
One that anticipates and adapts to the ever-changing desires of their customers. …..but not at any cost.
One where the requirements to grow and deliver a profitable and sustainable retail business is an imperative.
But the adaptiveness of the business mindset means it can right-size and grow its capabilities as its needs and customers morph.
For some of you it might be “no shit-sherlock”, but for others where there has been a pressure to “catch-up to the Jones” or simply managing hand to mouth and unable to be truly customer-centric; reframing your approach could be life-changing.
To understand how adaptive retail is a relevant mindset approach requires acknowledging why renewed thinking is required in our modern retail ecosphere. There are four key drivers of change and we explore why yesterday's strategies won't survive in tomorrow's market here.
The Guiding Principles of Adaptive Retail
Customer Centricity
At the heart lies a commitment to customer intimacy, a deep understanding of the preferences, behaviours, and aspirations that shape each individual's shopping journey. For many retailers this will be a really BIG stretch. Many retailers are not equipped with the systems, processes, rhythms or resources to deliver this. Nor do they truly know their customer – let alone intimately. But that isn’t an obstacle, more an inspiration to leapfrog and embrace this deeply within parts of the business first – where it is possible. Eat the elephant piece by piece.
The Omnichannel Imperative: Blurring the Lines
We know the traditional boundaries between online and offline channels need to dissolve to deliver a truly unified, connected commerce [omnichannel] experience.
Because customers expect it. A consistent and cohesive brand experience across all touchpoints, whether they're browsing a retailer's website, engaging with a mobile app, or stepping into a physical store. But this can be incredibly hard with legacy systems, siloed operations and limited cash. This isn’t new thinking but it embraces leveraging advanced technologies so retailers can create interconnected ecosystems that seamlessly bridge the digital and physical realms.
The Supply Chain Transformation: Anticipating Demand
In the realm of adaptive retail, the supply chain itself undergoes a significant transformation, evolving from a reactive system to a proactive, demand-driven ecosystem. An area that is evolving fast and cost effectively.
By harnessing the power of data analytics, AI, and predictive modelling, retailers can anticipate consumer demand with surprising accuracy, allowing them to optimise inventory levels, streamline logistics, and minimise waste.
Generative AI using own data, but the talent is in making decisions and interpretation.
Cost effective merchandise financial planning systems that not only enhances operational efficiency but also contributes to a more sustainable and environmentally conscious approach to retail.
By accurately forecasting demand and minimising excess inventory, retailers can reduce their carbon footprint, promote responsible consumption, and align their practices with the growing consumer demand for eco-friendly and socially responsible brands.
There Always Will Be Constant Change
That means we have to prepare our people, our shareholders and ourselves to move beyond the 3 horizon or 5-year plan into a land where there are guide-rails but a culture open to moving the tent pegs around.
INSPIRATION: Adaptive Retail In Real Life
What do we all hate about Zara?
The lines and the clutter!!!!! The lines to try-on, the lines to checkout, the lines to exchange…….
But in this new concept in Chicago the lines between online and offline have truly blurred and customers experience a seamless and consistent journey across all touchpoints. AI is playing a pivotal role in enabling this seamless integration to surface and allowing retailers to craft a more immersive and elegant experience in both worlds.
This new flagship is equipped with the latest omnichannel integrations and represents Zara’s ongoing efforts to provide innovative, tech-forward retail destinations for shoppers. In the new store design, various in-store technology solutions streamline traditionally time-consuming and labour-intensive activities, such as try-on, pick-up, and check-out. These self-service solutions, powered by Radio Frequency Identification (RFID) and robotics, significantly reduce friction for customers and allow Zara associates to dedicate more time to maintaining the elevated store experience by replenishing products, refolding items, and interacting with customers on the floor. LINK
👗Try-on
Through the “store mode” feature within the app, shoppers can reserve one of the 38 fitting rooms and are notified when a spot becomes available. Access to fitting rooms is granted using a self-service screen enabled by RFID.
Alternatively, customers simply hold items in front of the screen, and within seconds, the technology identifies the items and directs customers to an available room.
When finished, shoppers tap their clothes on another screen to close out their room and then hand the clothes to the associate overseeing the fitting rooms.
🚗 Pick-up
Through the Zara app, shoppers can browse available in-store products and place an order for pickup in 2 hours or less.
Upon arrival at the store, shoppers can swiftly retrieve their orders using the robotic-powered pickup system. Individuals scan the QR code found in the app, and the machine instantly identifies the order.
A glass door lifts, and the Zara parcel is ready for pickup. The entire process takes about 15 seconds.
💸Check-out
Customers check out at one of the 15 self-service kiosks. Like Uniqlo, Zara’s stations are equipped with RFID, enabling shoppers to place their items in a provided bin where items automatically register on the screen, eliminating the need for manual scanning.
🏀 REBEL SPORT PARRAMATTA CX
While Zara is a “hi-fi” mixture of solutions, there are also some “lo-fi” solutions which can blur the lines and remind customers of the opportunities to solve their problem and find their product.
Rebel in Australia is owned by a different entity in New Zealand and the references here are to Rebel AU, where traditionally it was both hard to find product or the size/style you were looking for or a team member to assist.
What this store brings to life are the touchpoint that:
(1) bring the differentiators to life in a tangible way and
(2) remind customers of how to solve their shopping needs,
(3) it holds the brand to account to deliver the “promise” whether it is range, sizing or personalisation.
This demonstrates a clear understanding (intimacy) of the customer pain points in the shopping experience and alleviates them. It provides clear signposting and scripts to the customer of “what to do.” It might seem too simple but the consistency of message and multiple ways to connect with the solution is seamless and customer centric.
🐾 CHEWY
Chewy is a prominent online based pet retailer based in the US. Chewy emphasises customer service, offering 24/7 support and a satisfaction guarantee on all orders. The company aims to create a seamless shopping experience for pet owners, allowing them to order products online and have them delivered directly to their home. But they take care and intimacy to the next level.
“We had 15 wonderful years with our family dog, Bailey, who passed away last week. Amid our grief, Chewy did something truly remarkable. After cancelling our dog food subscription, we received a painted rock with Bailey's name and a heartfelt note.”
This simple, yet profound gesture from Chewy was a powerful reminder of the impact that real human connections can have. It wasn't just a thoughtful act; it was an unforgettable IRL moment that showed true empathy—a perfect example of what customer care should be. ❤️
As the retail landscape continues to evolve [and will forever], the concept of Adaptive Retail is a mindset to stay ahead of the curve.
It means we capture all the essential ingredients of retail and wrap it in a culture of continuous adaptation. And how can this be a bad thing if you can future-proof operations, anticipate emerging trends and respond to the needs of customers, adopt the righ-fit technological advancements, to address shifting consumer behaviours. Let’s start the movement together with positivity and passion.
🤷♀️ But where is the playbook 📔 ?
It’s going to be published in The Xfiles Unedited. But we need to know you want to be a part of this movement! Like what you have read? 🛑Make sure you sign up to Juanita’s LinkedIn Newsletter “The X-Files Unedited” where we get unfiltered and challenge the status quo.
コメント