The Role of Retail Consultants in Transforming Brick-and-Mortar Stores for the Digital Age

While time has long arrived for traditional brick-and-mortar retail businesses to embrace modernisation and transformation, this transition is also filled with uncertainties and evolving technicalities. And when talking about retail modernisation and transformation, the most vibrant element is technology. Today, digital technologies significantly affect how businesses are planned and carried out. Technology has changed the course of the customer journey as well as the nature and flow of value chains. Technology has redefined what ‘value’ means to customers. Technology has provided speed and accuracy to business operations like never before. Working with experts in this field can make this transition much quicker and more effective for retail enterprises.

This blog highlights the role of expert and experienced retail consultants in the transformation and modernisation of brick-and-mortar stores in today’s digital and dynamic business landscape.

Validation of Big Decisions

The decision to make big changes in business towards transformation or modernisation is always a big and important one. It has long-lasting consequences. The decision is a good one but it must also be backed up with the right strategies, planning, and execution roadmap. Retail transformation or modernisation often entails the adoption of or migration to advanced technologies, incorporation of omnichannel systems, realignment of value propositions, hyperlocalisation, re-branding exercise, etc. Each of these endeavours requires careful planning and meticulous implementation. The option of taking it on alone is always there but having a team of experts alongside makes a huge difference. The first difference comes in the form of validation of decisions pertaining to transformation and modernisation. This validation is important on several grounds. It has ramifications on USPs, branding, customer experience, marketing, existing value chain capabilities, working relationships with business associates, revenue streams, etc. The role of retail consultants here is to justify and evaluate the necessity of those decisions and the efforts and investments that will come attached. Experts can help improvise those decisions and the planning and implementation for the same. To cut a long story short, it is good to have experts guiding the process of transformation or modernisation.

Arrive Quicker at Market Insights

Market research is a critical and perpetual requirement for all types of businesses irrespective of the channel. This applies to brick-and-mortar retail businesses as well. Market research helps ascertain the degree of demand for a product or service in a target market. It helps determine the conditions and preferences for buying and using a product. Another important motive is deciphering the nature and intensity of competition. Likewise, there are a host of other reasons for conducting market research. Market research is also a perpetual activity because the variables that are studied in it are dynamic. However, there are many challenges in conducting high-quality market research in this digital age. The lack of experience and expertise tops the list. This has a bearing on the quality of market research planning. Data collection is the next big challenge. Without experience and expertise, data collection in market research can prove to be a foraging exercise. The third big challenge is what is made out of the collected data i.e. deriving meaningful and actionable insights with the use of analytical applications. Having market research done by professional retail consultants helps get a critical starting point done right. Experts carry prior knowledge and understanding of how market research should be planned and conducted for different businesses and industries. Trying to get this done on their own may not be impossible but it can consume a lot of precious time during which businesses may lose any identified market opportunity.

Lend Perfection to Business Model

Whether it is a new business or an existing one, it is essential to keep business models relevant to prevailing market conditions and business environment. The absence of innovation and the lack of necessary adaptations make business models stale and unsustainable. Experienced retail consultants who are in touch with contemporary business and industry developments can help traditional brick-and-mortar businesses fine-tune their business models or come up with strong business models that reflect modern-day demands and expectations.

Resistance to change is another reason to work with retail consultants. Traditional retail enterprises tend to stay loyal to business models that have worked for them for years. Retail consultants can help pinpoint unavoidable reasons to upgrade business models. An external perspective from experts can bring a huge paradigm shift in perceptions based on undeniable facts and figures. Going omnichannel serves as a prime example here.

Last but not least is the factor of technology adoption. Today, there is hardly any business model that is not reliant on technology. Technology plays a big role in defining what constitutes value to customers, the functioning of value chains, and the delivery of value propositions. Retail consultants can help provide the much-needed groundwork for understanding and selecting the best-fit technologies.

Meticulousness and Conviction in Business Plan Writing

Not every entrepreneur or business owner carries the required level of technical understanding and expertise to formulate high-quality business plans. They might be very good at business but preparing a business plan is a different ballgame. For existing businesses, developing a business plan may become necessary in the event of any organic expansion, rolling out/taking up a franchising opportunity, business remodelling, forming partnerships and JVs, etc. A business plan is still an essential requirement for reiterating the clarity of business vision and the roadmap for success.

Veteran retail consultants often carry a good understanding of markets, sectors, competition, business models, value propositions, pricing dynamics, etc. The understanding of these elements is crucial to developing and writing a business plan.

One more upper hand of working with professional retail consultants is their knowledge of and expertise over proven approaches and solutions. Instead of searching for a way, experts can directly show a way.

Next is the factor of a fresh and expert perspective from the outside. There are many aspects of business planning where a fresh outlook by experts can help bring undermined or unrealised improvisations. They can also help highlight flaws in business plans that might have missed attention.

Formulating a business plan is a time-consuming activity. The large majority of activities in preparing a business plan consume a lot of time. This includes market research, identifying and adjusting value propositions, competition scrutiny, business process management, development of organisation framework, preparing financial and commercial projections, etc. Experienced retail consultants can help make significant leapfrogs in the process.

Achieve Operational Excellence

In contemporary retail, the impact of operations is not confined to operations alone. The quality of operations has far-reaching consequences touching customer experience, customer acquisition and retention, footfall and conversion, and prospects of growth and expansion in the future. In light of these additional specifications, retail operations planning cannot be done as it was done in the yesteryears. The element of technology and the emergence of newer business models make the equation far more complicated. So, achieving operational excellence in today’s business landscape calls for both adherence to process fundamentals (e.g. SOPs, streamlining operations) and understanding and incorporation of modern-day aspects (e.g. technology, trends). The significance of professional retail consultants here is that they help businesses in adopting and adhering to the principles of business process management and SOP development and implementation. Their insightful understanding of the connections between business results and operations makes their role even more important. Some retail consultants go beyond providing assistance in SOP development and implementation and also help with finding the best-fit IT solutions as well as following up with the necessary SOP-IT integration. An important requirement to achieving operational excellence is to become process-oriented first.

(For information on SOP templates for retail business, please visit YRC’s website.)

Exceed Customer Expectations with Superior CX

The homogeneity of products (and services) makes brand distinction a difficult feat in the retail industry, especially among direct competitors fighting for the same share of a market in generic sectors like FMCG, non-branded fashion, pharmaceutical, furniture, etc. It has become very important for traditional retail enterprises to develop a competitive edge in other areas. One such area is customer experience. While promotions and razzle-dazzles can attract customers, a better shopping experience helps retain customers. With consistency in the quality of CX delivered, the chances of the next visit are always higher. Trying to retain customers via superior CX may be the longer path but it helps build a solid base of loyal customers in the long run.

CX strategy is no longer a secret to retail brands and businesses. Every well-aware retailer realises its significance and most likely has implemented it in some way. This has ruled out the utility of entry-level CX strategies and solutions. The involvement of experienced retail consultants makes a huge difference in the planning and implementation of CX in every relevant aspect of a business. This includes servicescape, layout planning, navigation and checkout, staffing and training, omnichannel, digital marketing, personalisation, rewards and loyalty, localisation, operations, technology, etc.

Getting Hyperlocal

Hyper-localisation strategy seeks alignment with local market conditions. One of the prime manifestations of hyperlocalisation is when products, services, and experiences are curated to meet the wants and expectations of local customer bases. Hyperlocalisation is not confined to marketing; it can also be incorporated into operations management, financial management, use of technology, vendor management, and so on.

Two big reasons to go for hyperlocalisation are resonating strongly with local customers and becoming a more lean and efficient enterprise. At a time when brand distinction has become extremely challenging for retailers, hyperlocalisation provides the much-needed room for action and transformation. When it comes to enhancing enterprise-level efficiency, hyperlocalisation can help reduce redundancies and achieve higher ROI from every business function. For example, by adjusting the working hours to the prime activity hours of a locality, a retail store can make significant savings on operational expenses.

The experience and expertise of retail consultants come in very handy here. The accuracy and effectiveness of the measures to be deployed are of critical importance in hyperlocalisation. For hyperlocalisation to be successful, multiple business functions and processes may have to be revisited and adjusted. Each store may have a slightly different business model. Each store may have different SOPs and operational standards. Even with all these locality-based customisations, the global business vision and objectives must not be compromised.

Cementing Success with Financial and Commercial Assessments

For any business, its financial and commercial performance gets to have the final say on almost everything about it. To keep this key performance area under observation and control, it is imperative to have a vision and roadmap for it. In other words, financial and commercial planning is critical to keep the number game under control. There is no assurance that things cannot go south but if you have financial planning and projections, you would know if you are headed in the right direction and that enhances your chances of reaching your intended milestones. Interestingly, finance is such a common subject that it may seem extra to take external advice or consultations on this matter (filing taxes is an exception here). However, financial and commercial planning is a far more complex subject in business than managing personal finances. It is not just about knowing the accounting principles and procedures but knowing what should be accounted for and how. This is where the expertise and experience of retail consultants chip in. Experts can help quickly and accurately cover important areas of work in financial and commercial planning like:

• Assessment of capital and operating expenditure
• Demand projection
• Sales and revenue projections
• Cash flow and working capital management
• Pricing and margin analysis
• ROI and break-even analysis
• Calculation of financial ratios as applicable
• Preparation of estimated P/L statements (5 years at least)
• Preparation of estimated balance sheets (5 years at least)
• Assessment of internal and external funding

Scale Expertly with Franchising

Many retail enterprises tend to avoid taking the business risks of starting another store or branch. Sometimes there are valid reasons for it too. One of the explanations often turns out to be the absence of successors to take over the reins. However, in most of the other cases, the reasons tend to be general uncertainty, lack of willingness, tendency to stay in comfort zones, and lack of internal expertise to execute growth and expansion of business.

Franchising is one of the smartest and most effective approaches for striving to achieve growth and expansion. It can be a game-changer for traditional brick-and-mortar retail businesses in their scaling ambitions. Again, the challenge for many businesses is doing it expertly and getting it done on time. Working with people who have the necessary experience and expertise in this field can help meet both these objectives. Professional retail consultants offer a wide range of services and solutions aimed at helping businesses in planning and implementing their franchising projects. These include preparation of franchise expansion strategies, franchise business model development, franchise business plan writing, support in franchise partner selection, development of franchise operations manuals (franchise SOPs), drafting of franchise agreements, and formulation of franchise audit and control systems.

About Your Retail Coach

YRC is a retail and eCommerce consulting undertaking specialising in solutions for business setup, better management, and transformation. With more than a decade of experience in consulting for retail brands and businesses, YRC has worked with over five hundred clients in more than 25 verticals with an accomplishment ratio of over 94%. YRC is also an undertaking with a rising international trail.

For retail transformation and modernisation endeavours, feel free to drop us a message and one of our retail consultants will shortly reach out to you. We engaged qualified and experienced professionals in service design and delivery.

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