Lauren Bitar often has to act as a mediator — and hold interventions — for retailers who are looking for umbrella solutions to their retail woes. Like addicts, the head of retail consulting at RetailNext argued, they need targeted help and a patient approach.
Data analytics, innovation, e-commerce and technology may not be suitable for every retailer, yet these have become trendy “addictions” that brands are keen to employ. “The first step is to admit that there is a problem,” she said, adding that brands can take a variety of approaches to overcoming their challenges.
One of them is to use analytics properly. Bitar claimed that retailers aren’t setting up proper tests or engaging with a large enough consumer sample to pinpoint their particular issues. “There will be someone with a clipboard at a store for two days and they’re going to use this data to decide whether to spend millions of dollars on fixtures in their stores,” she said.
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Retailers also tend to view e-commerce as the be-all and end-all, Bitar said, but then pointed out the cost and challenges of relying on digital sales as a quick fix to drive revenue. “It’s easy to get those initial evangelical customers, but to acquire a broader base, it’s really expensive,” she said.
“We might see our stores as dotcom, social media, or wholesale. Shoppers just see the brand, and we have to think about every way you’re engaging with them, whether it’s a profit-generating stream or not.”
Bitar also believes that retailers need to beware of innovation. While innovation is much needed, she said, companies should ask themselves if they are taking enough risks and if their current customer base will be receptive to change.
“Walmart’s Scan & Go, a cashierless checkout similar to Amazon Go, ended up being pulled because they couldn’t make their current consumer base use it or adopt it,” she added.
Change will happen and being honest is key, said Bitar. “Be honest with every level of your organization, from the top all the way down and involve every single level because collaboration has to come from all areas.”