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| 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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