Study Finds the True Cost of Improper Store Execution
Improper store execution can cost retailers millions of dollars in lost revenue—$3.7 million on average, to be precise.
“Store chaos comes in many forms and includes missed deadlines, failure to restock promo products during peak periods, and poor in-store merchandising execution,” the report says. “When these errors pile up across stores, the result can be a loss of millions of dollars to the enterprise and damage to customer satisfaction and brand image.”
We wanted to know how poor in-store merchandising, missed deadlines, and restocking failures were impacting retailers’ bottom line. Suffice to say, the results were astounding, and speak to the increased pressure associates and managers face on a daily basis to deliver a brand-consistent shopping experience.
Here Are Some of the Findings from RIS’ Report
- The top method for communication between headquarters and stores is through email (at most, emails are received at the store level 2.5 times per day)
Mobile Device Usage:
- 77% of store associates and 43% of store managers don’t have access to a mobile device at work (surprisingly, 23% of regional/field managers report also not having a mobile device for work)
- The top problems preventing proper in-store execution are stockout replenishment, overall compliance with headquarters’ goals, promotions, and merchandising resets
According to RIS, the study proves that better communication with managers and store associates is essential for solving store-level compliance problems. (It also finds that one of the best tools—mobile devices—is underutilized today, notably for store managers and associates.)
Click here to download the free study and find out what types of store-level compliance issues retailers are facing.
And, if these problems sound all too familiar, request a demo of Foko Retail to learn how you can get better visibility into stores, simplify store operations, and get tasks done right (and on time) at every location.
About the Author
Matthew Ritchie is a content marketing specialist and former arts and culture journalist. He lives in Ottawa, ON. When not researching and writing about the retail industry, he can be found hiking the trails of nearby Gatineau Park or alphabetizing his record collection.