The retail environment was all over the map during the pandemic. Some categories saw spectacular sales, while others took a nosedive. Regions that completely shuttered stores experienced big hits, though strong online sales helped many brands charge ahead.
Monthly retail sales comparison:
Nov 2019 to Nov 2020
Building materials & garden supplies
+13%
Non-store
retailers
+23%
Electronics & appliance stores
-14%
Clothing & accessories
-28%
Lessons from the pandemic will linger for years to come. But in the aftermath, it’s imperative that retailers review their business models and shore up their capacity to respond effectively, both to ongoing changes in the marketplace and shifts in consumer behavior.
Our readiness guide for retailers outlines questions retail executives should ask to ensure they’re ready to take the next big leap for their business. From strategic to financial and operational issues, this checklist provides a jumpstart toward a successful recovery and reinvention.
During the pandemic, retailers with strong omnichannel and e-commerce strategies thrived. Although shoppers will have more opportunity to browse and buy in-store as the recovery moves forward, a majority will continue their online shopping habits.
Upgrade your omnichannel and e-commerce strategy.
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of consumers who tried a new digital shopping method during the pandemic plan to keep using it post-pandemic.
84%
Questions to consider:
Every customer interaction — website, in-store, mobile app, delivery services, curbside pickup, in-store locker pickup, or third-party location pickup — should reflect and reinforce your brand experience.
Where are the gaps in our omnichannel strategy?
Many retailers struggled to keep pace with technological advancement during the pandemic. But to keep a competitive advantage, retailers must make calculated investments in next-generation solutions that will drive efficiencies, control costs, and support new customer behaviors.
Questions to consider:
Keep pace with emerging technologies.
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An agile foundation is critical; this enables the development of applications that can handle increased traffic volumes without friction for internal users. Your technology resources should be highly available and scalable to deliver optimal performance as your network volumes grow. Taking advantage of SaaS platforms can help add functionalities as needed.
Top business issues retail leadership wants to address post-pandemic:
Is our infrastructure scalable and flexible enough to support our evolution?
Jurisdictions will likely revise their regulations to capture funds in new ways post-pandemic. Retailers should prepare for an increasingly complex tax landscape and additional remitting and reporting requirements.
Questions to consider:
Revamp your tax strategy.
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Because local taxing authorities may base taxes on ship-to addresses, ship-from, or a combination, calculations will be more intricate. New jurisdictions will require remitting and reporting regardless of your operational base, and international sellers will add VAT elements to the mix.
How can we enhance our tax posture as the business evolves?
How will our physical and online growth impact our tax obligations?
Reduction in state sales tax receipts in May 2020 vs. May 2019
21%
The operational strategies of the past won’t position you for success post-pandemic. Retailers must transform their operations to deliver results in a business environment that will be more dynamic than ever before.
Fulfilment Questions to consider:
Increase operational efficiency.
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Real-time visibility into your business — inventory, staffing, costs, sales — will enable you to quickly adjust and align your strategy with emerging trends, disruptions, and opportunities. Cloud-based technology architectures provide flexibility to scale your operations and maintain healthy revenue even as market dynamics shift.
Eliminate operational bottlenecks and resource constraints as a top priority. Targeted technologies can remove friction and streamline processes. This boosts efficiency even as regional restrictions and sales levels fluctuate. The right digital tools will also provide valuable automation and optimization of your operations.
How can we increase our efficiency, save time, and drive revenue?
How can we become more agile to respond effectively as retail evolves?
Pivoting investments from store openings and refurbishments to technology and supply chain improvements will be a central part of the digital transformation, enabling retailers to uncover new cost savings while simultaneously growing their businesses.
Success in the coming years will require new thinking and new processes.
Implementation of technology tools to streamline operations and increase agility
Order, pricing, and payment systems must function seamlessly across channels. Your inventory platform should integrate data from distribution centers and local stores for full-scope visibility. Compliance with data privacy regulations in existing and planned markets needs to be a top-tier consideration.
How can we create a consistent customer experience across channels?
Do our systems
and applications integrate well?
Data silos hinder your ability to understand what’s happening in your business, and legacy platforms may not integrate fully with modern systems. Your technology solutions should work together and provide strong visibility and quality data to drive your strategic decisions.
Improve customer engagement
Improve operational efficiency
Improve agility and speed to market
New fulfillment centers, pop-up locations, etc., will change how and where products are taxed. Strategic discussions with your tax department and implementing the right tax technology will help you focus on meeting customers’ needs while remaining operationally efficient and compliant across your entire footprint.
Assessment of financial impacts from evolving taxation rules
Refinement of fulfillment process
Maturation of
omnichannel strategies
Reinvention Readiness Checklist
4 Ways Retailers Can Prepare
Now for Post-Pandemic Success
Source: US Census Bureau
Source: McKinsey, "Survey: US consumer sentiment during
the coronavirus crisis," Dec 2020
Source: KPMG LLP, "2020 CIO Survey: Consumer & Retail industry insights"
Source: Tax Policy Center, Jul 2020
Source: KPMG LLP, "Future of Retail," Jan 2021
Retail executives can help prepare their organizations for the future. Leverage this checklist with your team to explore your organization’s current state of readiness and bring together the elements you need to win in the post-Covid-19 environment.
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