Magazines Archives - 2008 May

DESPITE the looming global slowdown, retailers are still more concerned about improving customer service than about the hard times ahead, US-based Retail Systems Research (RSR) learnt. The Customer-Centric Store, a survey conducted by RSR, has identified “the need to improve customer service while keeping down costs” as the number one concern of industry players, with 56% of the respondents finding this a challenge.

Other concerns included more consistent store execution; improving employee productivity and customer conversion rates; differentiating from competitors; and pricing. The economy was
listed as retailers’ eighth biggest concern, after sales loss due to out-of-stocks.

The January-March 2008 survey, released last month, covered 127 respondents across the US, Canada, the UK, the EMEA countries, the Asia-Pacific, and Central and South America. Of those surveyed, 60% belonged to the general merchandise and apparel sector, 29% were from the fast-moving consumer goods industry and 11% from the hardware/ DIY segment.

“We found that customer-centricity remains in the forefront of the minds of both retailers and consumers. Clearly, retail laggards (those whose year-on-year comparable sales lag behind their
peers’ and inflation) are seriously concerned for their own future. But our data shows that the better a retailer’s past performance, the less it focuses on short-term economic conditions as a
business driver,” the report stated. Mid-market retailers were “especially concerned” about improving customer experience while holding costs, it added.

Of those placing the economy as one of the top three business challenges they faced, 40% were laggards, 33% were average performers and 12%, retail winners.

“The bottom line is that the customer is alive and kicking, and, even in tough economic times, ... expectations for quality customer service in ... stores remain high. Retailers recognise this
and customer-centricity continues to be the Holy Grail for those who seek to come through these economic times as sustainable winners,” it added.