Support for small retailers trading during Coronavirus

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SUPPORT FOR SMALL RETAILERS TRADING DURING CORONAVIRUS Expert insight that could help your business survive and succeed

FOREWORD

Frank Woods, Retail Sector Lead, NFU Mutual

Every retailer is facing fresh challenges during this difficult time. Although the pressures and concerns may be different for each business, there are just as many for those that have remained open as there are for those that have been forced to close as a result of the Government restrictions.

Some small retailers have chosen to close regardless, due to the complexities of

enforcing social distancing with customers, keeping staff safe, and in response to the logistics and supply issues that they face.

In this article, retail expert Clare Bailey looks at how these three areas are impacting those businesses that remain open, providing valuable guidance that could help you stay up and running in the weeks and months ahead.

DELIVERING A GOOD CUSTOMER EXPERIENCE IN CHALLENGING TIMES It’s difficult to maintain a good customer experience when you must ensure that social distancing measures are maintained for the safety of your customers and employees. As a business, you’ll need to manage the flow, and numbers, of customers on your premises.

This could cause some shoppers to become frustrated when instructed to wait, or to move to a different position in the store.

HAVE A SYSTEM; COMMUNICATE IT CLEARLY Retailers that are managing this challenge successfully ensure plenty of information is readily available to help customers understand what they need to do in the store. Queues to access the shop or tills can be managed using pavement or floor markers for standing positions, and you can guide customers to wait for one customer to exit before the next enters. The solution will vary depending on your situation and store size.

In most cases, the more information you provide upfront to set customers’ expectations, the less likely you are to see tempers flaring and reduced frustrations.

So, make sure information is clear, visible and eye catching so it gets noticed.

Right now, this information is as important to your customer experience as your promotional marketing. The better it is, the more shoppers will observe it, and you should see fewer issues as a result.

HANDLING DIFFICULT CONVERSATIONS SAFELY With tensions running high, some customers may still become annoyed.

As always, remain calm, ask them to

explain what has gone wrong, and how they would like you to attempt to resolve it. Generally, if you listen to an angry customer, acknowledge their issue, explain your position, and offer the best resolution you can in the circumstances, they will be satisfied.

It is essential for your safety that – even in a heated situation – you maintain social distance. If the situation escalates, you need to protect yourself and your staff, so you may need to call the police. You cannot allow a customer to encroach on your personal space, putting you at risk. You should also make sure all staff, experienced or new, are briefed and aware of all measures, how they should diffuse difficult situations and when to raise the alarm.

MAINTAINING SHOP STANDARDS You should still aim for your store to look the best it can, with well stocked shelves, clear signage and good merchandising.

Customers need to spend as little time as possible exposed to each other so ensuring that they can locate products and see prices, promotions and offers will make their shopping experience as frictionless as possible.

Should you find the store quiet or empty, you could invest that time to try and look at it from a ‘customer’s point of view’ and think about how you can make it better, easier to shop, and easier to navigate.

Simple things, such as on-floor markers or fixture-based signage can be used to direct customers to different sections of the shop quickly. If a customer can find everything they need efficiently, they are likely to spend more money, more often with you.

KEEPING YOUR STAFF SAFE As the employer, you have a duty of care to ensure measures are in place to maintain social distancing and to provide all necessary equipment, such as sanitiser and personal protective equipment (PPE) where relevant. You may need to consider the use of screens or barriers to protect both staff and the public. This is no doubt as new to you as it is to them, so talk to them, get their ideas, hear their concerns, and find solutions that work for everyone.

You cannot risk a member of staff complaining that you put their life in danger by not providing appropriate safety.

Such a failure could ruin your professional reputation, and in the worst cases, it could result in legal action. Investing the extra time with staff now is not only essential to them preserving the customer experience, but also to ensuring their safety.

TRAINING REMAINS A PRIORITY It is imperative that staff are fully trained on any extended measures to protect both the customers’ and their own health.

However, you may have had members of experienced staff self-isolate or become ill, which will put further pressure on you and the remaining team.

You may need to bring in temporary, inexperienced staff. This is always a challenge, but now more than ever, you need to ensure that they have a comprehensive induction, especially on all aspects of hygiene and health & safety.

If you have a high staff turnover, consider recording elements of the induction such as an introduction to your business, values, customer ethos and expectations on hygiene & safety.

CONSIDER STAFF WELLBEING Staff who are ill or self-isolating may feel concerned about their future job security, so maintain regular contact, reassure them, and ask if there is anything you can do to help.

Larger companies can support staff with mental health concerns such as stress and anxiety, whereas smaller companies don’t necessarily have that resource. However, there are organisations that can provide this support free of charge. For example, The British Independent Retailers Association (BIRA) is currently offering free membership and a whole package of Coronavirus-related advice.

If you have staff who have real concerns about the future, perhaps due to a partner being furloughed or made redundant, the Retail Trust charity runs a free and confidential helpline for all people in retail.

MANAGING LOGISTICS AND SUPPLY Consumer stockpiling has caused issues with the availability of some products, and with so many workplaces and schools closed, the demand for food and other items has shifted away from out-of-home eating to home cooking. Additionally, with pubs closed, people are drinking more at home.

Unlike other product lines where the stock that would have gone to hospitality businesses could be redirected through to retailers, it is much harder to do this with drinks products, due to the difference in the format between the retail and catering supply chains. This presents a challenge to retailers. For example, a significant proportion of beer sales in pubs and bars takes place from hand pumps. For this reason, beer is supplied in barrels or pressurised kegs. This format does not translate easily to the retail environment.

UNDERSTANDING CUSTOMER EXPECTATIONS Where you are struggling to source some items, you maybe able to merchandise over gaps in your shelves. This works where it isn’t a core item for a customer. However, where they cannot find essential products this can lead to frustrations.

You should liaise with suppliers or wholesalers if items you usually sell become unavailable, to see if there are alternative options. Customers will be a lot more tolerant if they can buy alternatives to their usual brand as long as they can complete their shopping list without having to go elsewhere.

If possible, try to ensure you have stock of everything your customers would expect you to sell, even if the actual product brand or size is not your usual item.

There may be some key items you genuinely can’t keep in stock due to demand or supply issues, no matter what alternative options you seek. In this case you might need to impose limits on the number of these items customers can buy.

If that occurs, ensure there is very clear signage to avoid customer service issues at the till.

PROACTIVE STOCK LEVEL MANAGEMENT It is also important to not overstock on fresh or perishable goods. The demand profile you’ll currently see is not going to match what you might have expected in the past, and your EPOS data – should you use that – needs to be viewed cautiously.

Monitor sales of perishable goods daily, liaise closely with your suppliers to ensure you get what you need, and try not to get into a position where you sell out or end up with product reaching the end of their shelf life and therefore surplus stock.

Should you find yourself with perishable stock coming towards the end of its shelf life, and have no chance of selling it, consider contacting a foodbank, care home, or similar worthy case in the local area.

They may be able to collect, and it may lead to a public thank you on social media, which is good for your reputation.

PLANNING DELIVERY AND MERCHANDISING SCHEDULES When it comes to refilling shelves or receiving deliveries, you must remember to ensure social distancing and PPE rules (where applicable) for staff and delivery drivers are applied.

Allow time before opening or after closing, where possible, to replenish shelves, preventing staff and customers coming into unnecessary contact. When you can’t do that, perhaps due to the timing of a delivery, encourage staff to apologise to customers if they are blocking an aisle while they work.

Alternatively, restock in small batches rather than using full roller-cages. Staff can replenish one or two product lines at a time, avoiding blocking an aisle for longer than necessary. This simple practice makes it much easier for shoppers and staff to maintain the two-metre distance.

PROVIDING ADDITIONAL SERVICES If you have the ability, you could offer delivery to more vulnerable customers in the area who might not have a relative, friend or neighbour able to help them.

Smaller-scale retailers are finding many innovative ways to get new business, by taking orders over the phone or via different forms of digital media, for example.

If you can collate an order for a customer, but have no means to deliver, you could work with local taxis who may have almost no customers at present so may welcome the extra income from dropping off shopping. This offers additional income streams now, as well as the potential to retain those customers post pandemic.

CONCLUSION These are unprecedented times. You and your staff are key workers because of the critical lifeline you are offering to your community. Some days may seem hard, but I have no doubt you and your team are doing the best you can do, in very testing and stressful conditions. Keep doing it though, because the effort you invest in supporting your community now will hopefully serve to ensure their long-term future loyalty.

CLARE BAILEY, FOUNDER OF THE RETAIL CHAMPION Clare Bailey is one of the most well-known and respected retail experts in the UK. With unrivalled knowledge on retail, high streets, and consumer matters, she offers unbiased, independent guidance to help retail businesses succeed.

SUMMARY CUSTOMER EXPERIENCE Signage: • Check that customers will understand any new queuing systems you’ve put in place to manage social distancing • Make it easy for customers to find what they’re looking for • Ensure prices and promotions are easy to understand.

Handling customer frustrations: • Make sure systems are in place that reduce the risk of escalating tension • Remain calm and empathetic, bearing in mind the additional pressure that most customers are under at the moment • Be clear with your staff on how to handle customer frustrations without breaking social distancing guidelines.

STAFF Personal Protective Equipment: • Proactively plan what you and your staff need to keep safe and protect customers.

Training: • It’s more important than ever that they know service and safety expectations and procedures.

Employee wellbeing: • Stay aware of your staff’s various concerns, and source support to help them.

LOGISTICS AND SUPPLY Product lines: • Replace key product lines that are unavailable with substitute brands if necessary • Be wary of relying on previous EPOS data to manage your orders during Coronavirus.

Delivery and merchandising: • Consider rescheduling deliveries to more suitable times to limit the impact on social distancing • Merchandising in smaller sessions can prevent blockages forming in aisles • Consider if there are any opportunities to expand your customer base by arranging a simple delivery service.

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