Sunday 11 June 2017

What The Big Retailers Are Doing About Retail Decline

Increase Sales & Reduce Costs
A global pattern is emerging about how retailers are tackling the retail revolution and it includes many different actions some of which are taking place at QVM.

Much effort is going into engaging more closely with customers particularly through digital avenues like social media. Services to customers are being enhanced in regard to communication, delivery, payment and general convenience. There are many positive, pro-active measures being introduced as retailers look to increase sales.

At the same time there is a strong analysis of cost effectiveness and profitability as retailers examine their operations. The string of store closures, downsizing, and staff reductions are a real focus in the US as major retailers reveal that a staggering number of stores are earmarked for closure. 

Here in Australia, Target have just announced that they are carefully looking at reducing their store portfolio. They are reluctant to talk about store closures although they admit store space will decrease - “Our network over time will see net space fall, but sales and earning productivity increase as we seek to optimise the fleet.”

So while there are proactive measures to engage with customers and increase sales, there are also control measures as the reality of reduced consumer demand and more competition makes it necessary to cut costs, perhaps reduce store numbers, and introduce efficiencies. It is unlikely that QVM and its 600+ traders will be immune from that process.

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