Today, Coresight Research released a new report in collaboration with Simbe, summarizing a survey of 150 retail decision makers in the U.S: “The State of In-Store Retailing: Opportunities To Redefine Operations.”
The report assesses industry pain points and technology adoption. It also underscores how only Simbe’s technology provides the multiple value streams, chain-wide proof points, and critical technological & service capabilities that are required to support retailers’ vision for resilient operations – as well as stellar shopper & associate experiences.
Status quo approaches to store operations impact retail revenue & operating margin, especially OOS and price & promotion accuracy
According to the data, over 70% of respondents lost at least 5% operating margin in each area of out-of-stocks, price & promotion execution, planogram compliance and allocation & assortment planning.
These operational challenges were particularly evident related to price & promotion execution (96%) and out-of-stocks (92%). On average, retailers lost 4.5% of revenue to these inefficiencies.
Inventory scans sustain shopper attrition & perpetuate labor challenges
Further, Coresight estimates that revenue and operating margin losses may be even higher than reported, due to lack of visibility into key business functions, particularly out-of-stock levels and price & promotion compliance. Respondents report lowest visibility into out of stock (45%), planogram compliance (43%), and price & promotion (40%).
As Deborah Weinswig, CEO and Founder of Coresight Research said in today’s joint press release, “modern retail has simply become too dynamic for status quo tools, and retailers who fail to adapt are experiencing the financial ramifications.”
“Traditional tools like manual scans create inefficiencies and information gaps that impact retailer revenue, constrain shopper loyalty & spend, and perpetuate labor challenges,” agreed Simbe CEO & Cofounder Brad Bogolea. The same can be said for store technology that’s to deliver promised ROI.
In-store technology is critical to closing retail revenue & information gaps
To minimize lost revenue and improve store performance, Coresight Research and Simbe found that retailers are turning to new in-store technologies that operate seamlessly within retail settings.
Indeed, the majority of retailers are investing, or planning to invest, up to 9 figures annually in new in-store technology to improve performance across inventory management, operations, and planning.
Leading global retailers illuminate the business value of store intelligence
Survey findings and Simbe case studies show that leading retailers – from global and national chains like SpartanNash and BJ’s Wholesale Club, to regional grocers known for technological innovation like Schnucks – are showcasing the business value of in-store automation.
“We’re seeing more leaders invest in proven AI- and data-based solutions that drive efficiencies and enhance transparency throughout the store. This study underscores the critical role of store intelligence in closing the revenue and information gaps that exist today,” said Weinswig.
Simbe is the store intelligence platform retail trusts
The report also presents how Simbe customers – in aggregate – create exponential value chainwide across many parts of the retail business with our store intelligence platform.
We invite you to gain a more comprehensive look at the data by downloading the report: The State of In-Store Retailing: Opportunities To Redefine Operations.” Additionally, Coresight Research will host a webinar on April 9 to present the findings with further takeaways for retailers. Register to attend.
