POST-PANDEMONIA 3 Stages to the New Horizon of
HARMONIC RETAILâ„¢
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Intro...............................................................4-5 Stage 1: Orbit Re-entry...........................6-9 Stage 2: Reconniassance.......................10-13 Stage 3: Recolonization.........................14-17 Contact Us..................................................18-19 Appendix: Key Tools of Harmonic Retail™.............20-21
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Like NASA’s recently announced plan to return to and colonize the moon, retail must navigate a series of stages to re-open stores, understand our new retail landscape and colonize a new normal.
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Stage 1: Orbit Re-entry
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Fearful of a “second wave” from Covid-19, but more anxious than ever to, “get back to normal” shoppers need and want their essential goods (and desires) available online, for immediate reciept. So where does this leave brick and mortar retail as America begins to “re-open”?
RE-ENTRY PROTOCOL 1 Focus on select stores in key markets, first. 2 Ramp up curbside & BOPIS capabilities. 3 Ensure your eCommerce platforms are operationally healthy & offer a good experience.
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Stage 1: Orbit Re-entry
Lyra
Safety Protocols: Establish, Train, Enhance Staff : It’s important to train staff on how to maintain distance and interact positively with the customer. Staff who ignore safety will feed coworker and shopper fears. Set clear guidelines on mask wearing, add extra hand wash stations, designate a staging/de-staging staff entrance with protected storage for personal items and a hand wash station. Establishing daily health protocols such as temperature checks is expected, and will potentially be a liability if not established. Stores: Visually communicate your cleaning protocols to your shoppers – it isn’t enough to just clean, timing and demonstration matter – staff and customers need visible evidence to remind and reassure. Remove product testers, consider one way aisles, and regulating in-store traffic. Place sanitizer at multiple points around the store. Mark 6’ distance increments in queue lines, restrooms, anywhere customers can group. Fitting rooms will need sanitizing between every use, with signage clearly posted to show this is being done. Place sanitizing wipes by credit card machines. Decide how cash will be safely handled - or offer clear signage if temporarily not accepted.
Canis Major 8
Cassiopeia
Adjust Store Layouts Determine how much store footprint can be adequately cleaned, stocked, staffed and managed now and open only that space. Larger stores may need to keep some areas closed until they have more bandwidth and experience with new protocols. As quarantines end in other Countries, small stores (under 8,000 s.f.) are seeing the most traffic, as shoppers feel safer in small, less populous stores. Do your best to reset merchandise to current season and focus on restocking. It’s important that stores look current and displays seem full. If you have limited staff, focus service on what will get the customer home soonest, such as check-out, or click & collect pick-up. Begin planning POS system upgrades to accept touchless pay methods, plan budget for inventory tracking technology, pronto.
Enhance Communication Add signage to compensate for potentially fewer staff in store. Using signs to explain product info, return policies and other touch points normally handled by staff will minimize shopper frustration and keep things moving. Boldly communicate how shoppers can access your curbside, delivery and online ordering services. Help your shoppers navigate new services they might not have used before: offer a fast, two-way communication customer service hotline (accessible via direct dial, text, chat bot or email). Be sure to acknowledge concerns and to thank staff and customers for their patience and support.
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Stage 2: Reconnaissance
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Caution until the, “All Clear.� As testing expands, communities re-open and workplaces begin staggered re-entry procedures, shoppers are also beginning a new rhythm to shopping in-store.
This comeback comes with new expectations of service and experiences previously offered but with a new layer of safety. This means, the Retail Evolution under way prior to the Covid-19 pandemic is now fast-tracked. The new shopper mind state is accelerating brand and retailer one and three year plans to: NOW. 11
Stage 2: Orbit Reconnaissance
Ursa Minor
Re-Examine Supply and Distribution Supply chains will be stressed well into 2021, so new sourcing may be needed to keep merchandise fresh and relevant. Now is the time to think outside the box – partnering with Direct to Consumer brands, or opening new product lines can help keep shoppers engaged, and relieve some supply pressure. Consider limiting in-store products to specialty and high demand items and funnel more traffic to your eCommerce platform. Reconfigure stores to include “dark aisles� reserved for digital order fulfillment to create micro-distribution capabilities closer to final delivery destinations. One-day delivery was already a standard pre-pandemic. With eCommerce beginning to stick, you need to meet this standard now or lose market share to those who can. If your distribution needs system-wide change, consider partnering with an expert, such as Shipt or Instacart to ramp up quickly. Along with delivery, BOPIS and curbside pick-up are now essential services. Revamp store layouts, staff training and mobile communication to more quickly perfect and grow these services. They are your future survival.
Flip The Business Model Come to grips with the fact that the retail model is flipping, with eCommerce becoming the transactional core of the business. You still have some runway, but what you put in place during Stage 2 will determine future success, or demise.
Ursa Major 12
A Returning Wave
Centaurus
Prepare to be inundated. Return windows extended during the shut-downs now form a massive wave of deferred losses. Plan to deal with refunds, shipping and labor costs to process returns. To add insult to injury, most returns no longer have resale value as they are seasonally expired. Consider asking a 3rd party reseller to step in. It won’t lower refund and asset losses, but will reduce your labor and space overhead and speed up the time it takes to get back to healthy.
Plan to Thrive Launch actions now to prep for success when retail levels out to its new normal: • Redesign stores to create a range of sizes and formats to give you the flexibility you will need to harmonize with customers and manage operations. • Review leases to identify renewal/expiry milestones and plan your square footage changes, curbside access and other re-negotiation requests. • Normalize cleaning protocols for long term sustainability, which may impact what materials you use for future store finishes and displays.
• Plus up your eCommerce platform, mobile app, social media engagement and hone your capabilities and leadership in these areas. • Integrate augmented reality, voice technology and QR codes where relevant. • Perfect your inventory tracking. This is mission critical for future success. • Form expanded retail partnerships to share skills, ease risk, grow customers.
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Stage 3: Recolonization
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The Good News: Humans are quick to normalize new circumstances and seek routine.
The Pricey News: All those tech and infrastructure investments you thought you could ease into over the next one to three years just became mandatory, almost overnight.
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Stage 3: Orbit Recolonization
Cygnus
What Does the “New Normal� Look Like? When future generations are asked to envision Target (for example) they will picture the website first, not the store. In the new normal, brick and mortar becomes a support platform for eCommerce. As such, brick and mortar stores will be critical to serve the eCommerce core of the new retail model. Important aspects of the new normal will include weaving website elements into the physical store, real time consultation that follows across digital and physical spaces, touchless technologies mirrored both online and offline, and amplified in-store experiences allow shoppers to understand products in the context of how they will work in their daily life.
Resilience For the Future Moving beyond survive into thrive in a changed shopper landscape takes adaptability and, above all, resilience. Building these into your business requires bold intention, and the ability to move fast in multiple directions. There are five critical traits that will be essential to succeed in the new retail normal.
Choice
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Draco
Shoppers want choice in all aspects of their retail experience. Anything touch needs a non-touch option, digital needs analog, lingering experiences also offer quick grab and go. Choices on fulfilment, staff interaction, payment and more - all are now table stakes for success.
Pan recessio spendin label or rev
Orion
Sustainability Partnerships Partnerships win for everyone. Shoppers visit more often, skills and resources can be shared, and resilience and flexibility are enhanced. By partnering with a nail salon, DSW added a popular service that grew sales. By partnering with Hy-Vee, DSW now has local neighborhood pick-up spots, plus physical access to shoppers during future “essential retail only” crises.
Incorporation of “green” will bolster your reputation and competitive position in the market. Explore refill stations, recycling, or used product lines to not only strengthen shopper loyalty, but offer new ways to engage, or even add revenue.
Flexibility Value
ndemic, and potential on has impacted shopper ng. Developing a private r value line can maintain venue during times of adversity.
Build every aspect of retail with flexibility at its core. Operations should readily scale up or down with economic tides. Store formats must flex for customer and community needs. Build both product and non-product related communities so support doesn’t stop in economic slumps. Flex your business to include a broader range of age groups, allow shoppers to jump between digital and physical as often as they wish. 17
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Contact Us
What stands between you and a stronger Harmonic Retail experience? TM
Harbor Retail specializes in helping brands and retailers navigate their re-entry safely, swiftly and with significant shopper engagement with significant shopper engagement: from strategy & integrated technology to the actual design & build of new shopper solutions. TM
Call us today to discuss the ways your brand or store can successfully climb to this new, retail horizon.
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Appendix
Key Tools of Harmonic R The more tools and actions integrated into your business model, the greater your ability to thrive: These key tools of Harmonic RetailTM remain ever critical in our pandemic and post pandemic retail reality. • Stay in harmony with the shopper journey.
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• Build loyalty and lifetime customer value. • Create the resilience needed for the new retail normal. merce m o C E rm Platfo
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