Retail TouchPoints: Assistant Vice President of Merchandising in Cognizant Business Consulting Discusses the Myths About Addressing the Changing Nature of Retail Business

“As the global economy has expanded and provided a multitude of options for how, where and when shoppers make purchases, the nature of retail has changed. Today’s leading retailers are keeping customers happy by creating positive shopping experiences and offering the personalized service shoppers demand,” writes Colleen Coleman.

Coleman goes on to analyze two myths related to how retailers are addressing the changing nature of business—myths that retailers must “minimize in-store labor costs” and that “floor space and inventory investment determine product offerings.”

“In the past, stores viewed labor costs as part of their cost structure; a part that could be minimized to increase profit margin. But as better informed shoppers demand superior in-store experiences, employees have become a valuable investment for retailers,” Coleman writes. “One major factor impacting stores is “showrooming,” where brick-and-mortar stores are inadvertently being used as showrooms for products customers intend to purchase online…To stay ahead of shopper demands, smart retailers are embracing “showrooming” as an opportunity for customer interaction points, part of an omnichannel customer experience.”

Citing Cognizant’s shopper survey, Coleman writes, “The shopper study found consumers increasingly desire personalized in-store experiences, the kind they can’t find shopping online. Well-trained, knowledgeable employees are a critical part of that. Retailers should be viewing their employees not just as staffers, but as brand ambassadors.”

“In the old retail model,” she adds, “stores served as spaces where customers could touch and check out products before buying them. But as customer needs have evolved, retail has evolved with them, and stores have become places for customers to buy not just products, but also seek services and solutions.”

Retail, Coleman maintains, is no longer limited by floor space and inventory; new services demonstrate retailers’ increased understanding of customer needs. “To continue stretching their brands, retailers will need to put processes in place to support partnerships. Similar to the transition to e-Commerce, organizations will have to make additional offerings and services available to remain competitive,” she writes.

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