For the retail industry, 2016 has started with great momentum, as exemplified by the attendance and buzz surrounding industry bellwether events like the NRF Big Show in NYC. It may be worthwhile then having a quick look back at 2015 to share some highlights from our research focused on the performance of 100 major European retailers. The survey, which we commissioned to market research firm Ginger, highlights the state of the operational challenges that retail organizations face and the context in which they operate. It assesses leaders’ level of satisfaction with operational and project performance in:
- Opening new stores;
- Renovating existing stores;
- Rolling out new retail concepts;
- Deploying events and promotional campaigns in stores;
- Executing in-store digital technology implementations
- and more…
1. A high dissatisfaction rate
Overall, 43% of respondents expressed dissatisfaction with the execution of retail store deployment projects. Reasons for their dissatisfaction vary, but are mostly related to projects being systematically late on schedule. Time-to-market remains a top priority in retail, as the costs of delayed openings and renovations, such as lost sales, penalties and additional costs due to rescheduling, can be significant, but are not necessarily always properly accounted for.
2. Projects are intensifying
Whether it is new store development, openings, renovations, a rebranding initiative or concept rollouts, the pace and complexity of deployment projects are intensifying. This increase is primarily driven by the need to support the brand’s growth strategy (69%) and by the pressure to adapt to changing customer demands and behaviors (54%).
3. Brands are poorly equipped
Retail brands are experiencing increasing pressure and complexity in their initiatives and projects, all the while reaching less and less of the goals they set out to achieve. However, the study revealed a relatively low penetration rate in advanced project management and collaboration software tools. Most projects are still managed using traditional office productivity tools.
4. Areas of improvement
We found out that there are two main reasons why projects are late. The first is that information travels poorly among the different organizations and stakeholders involved in a project. The second is that when obstacles are discovered during a project, it is often too late to take appropriate corrective actions. Different departments operating in silos is clearly an obstacle to optimal collaboration. That is why in 2016, even before considering reorganizations or full-blown outsourcing, executives plan to implement real-time management and collaboration solutions to improve their ability to monitor progress on a day-to-day basis rather than every two weeks during steering committee meetings!
Do as Galeries Lafayette, Renault, Darty, Orange and many other global retailers have done and equip your management and teams with One2Team, the collaborative project management platform designed for retail.