RETAIL METRICS THAT MATTER. Part 1: How Retailers Are Managing Today s Business Priorities and Challenges

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1 Part 1: How Retailers Are Managing Today s Business Priorities and Challenges

2 INTRODUCTION Retailers are transforming their businesses to be able to recognise, analyse and respond to consumers rapidly evolving preferences and behaviours. This four-part series highlights results from a survey of retail executives representing a cross-section of verticals and company sizes. Each part gives a brief overview of specific metrics that are top of mind for retailers who are striving to transform their businesses into nimble, collaborative organisations with the goal to better position themselves in today s market. PART 1: How Retailers are Managing Today s Business Priorities and Challenges PART 2: Factors Impacting Overall Growth: Economy, Budgeting, Globalisation PART 3: Internal Business Collaboration & Analytics in Today s Retail Enterprise PART 4: Inventory Fulfilment & Technology Investments The data provides insight into their business priorities, factors impacting growth, technology requirements, and other challenges these executives are facing into today s market. For a more in-depth analysis of these results, be sure to read the full survey, Metrics that Matter to Retail CXOS offered at the end of this ebook. PART 1: How Retailers are Managing Today s Business Priorities and Challenges < 2 >

3 PART 1 How Retailers are Managing Today s Business Priorities and Challenges PART 1: How Retailers are Managing Today s Business Priorities and Challenges < 3 >

4 Which of the following organisational priorities are most important for your business today? Retail executives are faced with balancing a variety of organisational priorities while satisfying diverse constituencies - most importantly their customers. Retailers have to be agile in order to respond to these changing demands as even small shifts in consumer confidence can have major budget implications. The main challenge lies in weighing up these priorities to develop adaptive strategies, implement flexible processes and make wise investment decisions. Today s business executives are acutely aware that although the retail economy may be showing signs of growth and improvement, they cannot be overconfident and must balance corporate business goals with prudent financial management. Today s senior retail executives place the highest priority on Supporting corporate business goals Supporting corporate business goals Managing financial challenges Updating finance strategies Updating and keeping internal IT systems and applications current Obtaining the best corporate talent Pleasing the Stock Market 62% 55% 33% 28% 13% 5% it 1 or 2 62%ranked out of 7 PART 1: How Retailers are Managing Today s Business Priorities and Challenges < 4 >

5 What are the key internal factors challenging business goals from being achieved in your company? With the continuing shift to omni-channel retailing, customers are demanding seamless interaction with their favourite brands. This means information about preferences, activity and a more personalised form of service - regardless of the retail channel. Retailers can no longer afford to operate within information silos or use disparate technology or information systems. They must transform their organisations with connected business processes and integrated technology to work within a collaborative environment. This crossbusiness collaboration is essential in order to provide the seamless brand experience promised by the omni-channel. Retailers who are able to make this transition quickly have the potential to gain considerable market advantage. Cross-business collaborations IT issues 50% 47% Executives rank Cross-business collaboration as the #1 internal challenge retailers face Prioritising goals and initiatives Risk management Lack of overall budget Filling corporate roles PCI compliance 44% 38% 36% 11% 3% PART 1: How Retailers are Managing Today s Business Priorities and Challenges < 5 >

6 What are the key external factors challenging business goals from being achieved in your company? It s a constant struggle to keep up with today s technologically savvy, connected customers. Not surprisingly, the majority of executives cite changing consumer behaviour as their greatest external challenge. Retailers must meet their customers omni-channel shopping demands while creating a product offering that is still unique and differentiated from their competitors. There is a great sense of urgency for retailers to figure out how to effectively satisfy evolving demands because if they don t, their competitors will and in a market of decreased consumer spending, every dollar counts. Changing consumer behaviour 65% 65% of executives cite Changing consumer behaviour as the greatest external challenge Increased competition Decreased consumer spending Ability to forecast and manage inventory Regulatory 51% 42% 34% 21% PART 1: How Retailers are Managing Today s Business Priorities and Challenges < 6 >

7 Which environmental and charitable initiatives are in place at your company? A retail brand is not built on its business prowess and operations alone; it is also shaped by the company s role as a responsible corporate citizen. Savvy retailers realise they can improve overall operations while establishing better relationships with their most loyal consumers when they participate in charitable giving initiatives or align themselves with responsible and proactive environmental practices. These efforts not only continue to drive retailer investment in greener business practices but can significantly influence a retailer s image in the marketplace, drive consumer interaction and raise brand value. Charitable giving 64% 64% of retailers have implemented charitable giving programs Environmental protection Energy conservation Sustainability Recycling Global citizenship Child welfare/education 53% 53% 46% 45% 28% 16% PART 1: How Retailers are Managing Today s Business Priorities and Challenges < 7 >

8 Want to Know More? Be sure to check out all the ebooks in this series: Part 1: How Retailers are Managing Today s Business Priorities and Challenges Part 2: Factors Impacting Overall Growth: Economy, Budgeting, Globalisation Part 3: Internal Business Collaboration & Analytics in Today s Retail Enterprise Part 4: Inventory Fulfilment & Technology Investments Read the Complete Survey PART 1: How Retailers are Managing Today s Business Priorities and Challenges < 8 >

9 Level King Street Sydney NSW info@uxceclipse.com ABOUT UXC ECLIPSE Microsoft Dynamics Gold Partner UXC Eclipse is the Retail ERP Specialist. The preferred implementation partner for large and complex retail solutions, UXC Eclipse offers business consulting and project management, applications development, corporate performance management and business process management. Speak to UXC Eclipse about how their integrated Microsoft Retail offerings are delivering true omni-channel retailing globally with mobile POS, full e-commerce, retail warehouse management and logistics, sales/marketing and social listening. Solutions are available on-premise or in the cloud all with a customer retention rate above 97% and delivered to the highest levels of customer service. < 9