With the recent news headlines about store closures and the collapse of well-known chains, alongside clear adjustments in business strategy amongst established high street favourites, there is no denying that the UK retail industry is under huge pressure.

A recent report suggests growing issues are leading some retailers to increase risk-taking in the supply chain. But here, Steve Bumphrey, Traka UK Sales Director, looks at ways to help retailers embrace the storm, including paying attention to security, management processes and efficient customer focus.

Challenges plaguing retail industry

It’s been an awful year to date for UK retail if you believe the cacophony of negative headlines about the health of the UK economy and the confidence levels of the UK consumer.

The sector is facing huge challenges in dealing with the evolution in on-line and smart mobile retailing

The sector is undoubtedly facing huge challenges in dealing with the evolution in on-line and smart mobile retailing. Further concerns include an unwillingness of policymakers to address the changing retail environment and how business rates and general business taxation and regulation is making a difficult situation worse.

Supply Chain Risk Report

According to the latest Global Supply Chain Risk Report, published by Cranfield School of Management and Dan & Badstreet, those under pressure, are now facing increased exposure to risk if they are forced to cut costs in their supply chain.

The report cites data for the retail sector that shows increased levels of risk-taking since Q4 2018, with retailers reporting high levels of dependency on suppliers and indicating a propensity to off-shore to low-cost, high-risk countries where suppliers are more likely to be financially unstable.

In-store technology revolution

The underlying evolution of technology taking hold of the retail industry and consequential changing consumer behaviour is what is really forcing the industry to step up and act.

This is not only in the shift to online and smart mobile purchases, but also with the increased use of technology in store.

Self-scanning and checkouts

In a bid to enhance the physical shop experience, especially in supermarket outlets across the UK, retailers are increasingly giving customers autonomy with self-scanners and checkouts and need to be able to trust them to ensure an honest transaction.

And for the shoppers, this dependency on technology and not human interaction to complete a shop means scanners must be instantly available and ready for use.

Many different underlying competing challenges impact the retail industry

Compensators

At the recent British Retail Consortium’s ‘Charting the Future’ conference, looking at retail crime and security, Dr Emmeline Taylor, a criminologist at the City University of London identified in self -service shops, several new types of ‘offenders’ such as so-called ‘compensators’ including the atypical ‘frustrated consumer’ who, “fully intended to pay but were unable to scan an item properly”, adding to the security challenge.

There are clearly many different underlying competing challenges impacting the retail industry. Arguably, the increase in technology and autonomous shopping, where less staff are present (or staff cuts planned) throws up more vulnerabilities, such as the opportunity for store theft.

Use of body cameras

Staff needs emerging technology such as body cameras to act as a deterrent to crime and keep employees safe

Furthermore, staff may need greater use of emerging technology such as body cameras to act as a deterrent to crime and help keep employees safe.

In essence, prevention is better than cure, and it’s certainly cheaper. Whether combating crime physically or online, or looking to find ways to counter the high street trends, working together, sharing information and taking a more holistic approach will help the development of a shared language between retailers.

Retail banking

It is also here where common approaches can help to deliver on efficiencies, in time, resource and budget that can serve to operate right through the supply chain, and minimise, or even negate the need to take any risks. It can even serve to enhance the customer experience, increasing confidence in the shopping environment.

Of course, when discussing the high street, it is not just the department stores and chains that are feeling the impact. Well known banks are also having to redefine their priorities and role on the high street, with customers (especially younger generations) demanding a more efficient service than ever before.

Well known banks are also having to redefine their priorities and role on the high street

Asset protection

Leading the way is Nationwide, globally renowned building society, which prides itself on being one of the largest savings providers and mortgages provider in the UK, promoting itself as running purely for the benefit of its customers, or ‘members.’

Richard Newland, Director of Branch & Workplace Transformation at Nationwide said, “Even more than getting a good ‘deal’ from a building society, the quality of our welcome, or our renowned level of service, we make sure our members feel safe with us, enough to trust us with their greatest assets. We are doing everything we can to evolve our business and focus our efforts on providing the best and most secure services that people value.

Key management systems

Traka has supported Nationwide with the introduction of dedicated key management systems

So committed to its branch network, it has pledged to its 15 million members that every town and city with a Nationwide branch, will still have one for at least the next two years. A bold statement in today’s climate.

Traka has supported Nationwide with the introduction of dedicated key management systems, moving its branch network into a more digital system. Keys no longer need to leave site and the audit trail capability has helped to remove the manual paper recording, allowing status of keys to be established instantly, at any time.

Changes in retail market

This example, together with Traka’s portfolio of high street brands and globally renowned department stores that cannot be named for security reasons, demonstrates the need for retailers to embrace the need for change, both from a product offering and operational running perspective to achieve aspirations of resonating with customers.

They also prove the opportunities for success, in an unquestionable difficult market environment. If retailers can listen to customers and respond accordingly, taking into consideration staff safety and security, alongside an ability to respond quickly to personalised enquiries and expectations. This way, perhaps, the current environment can be seen as an opportunity to innovate and embrace technology to form the high street of the future.

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Author profile

Steve Bumphrey Managing Director, Traka

Steve Bumphrey with a deep understanding of the retail industry and its logistical requirements and a passion for delivering exceptional customer service. Having joined in 2011, Steve is responsible for managing the retail sector and UK business unit of Traka, the global leader in intelligent key and equipment management solutions

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