What:  NRF examines in depth the less obvious lessons learnt by some of its members

Why it is important:  The distinction between B2B and B2C is increasingly disappearing, especially with the rise of marketplaces for retailers and the need to remain attractive to brands. This requires a new marketing structure, in parallel with a firmer control on the supply chain, which is key in the customer experience now more than ever.

It is not news to affirm that retail has been changed, and so has the customer, by the Covid-19 pandemic. All retailers in the world have now learnt the hard way that omnichannel is key, which implies fluidity across all channels, powered by efficient data management flowing through bots and apps, and completed by trained sales associates. However, there are also less obvious lessons learnt, and discussed by NRF with US retailers:

• Supply chain is now part of the customer experience: any supply disruption is now an issue for customers, who will not wait and go to another retailer. On top of that (and we see it these days), on some products on shortage, customers favour retailers with the most efficient supply chain. What is needed: an end-to-end visibility on the supply chain, implying to know vendors and use AI to de-risk the processes.
• SKU rationalisation: it is tempting to multiply products in order to satisfy each customer’s needs in a very individualized manner. However, this leads to an unmanageable complexity. A rationalization process, in cooperation with vendors, is therefore key. The article cites sodas which are supplied with basic ingredients and then customized on the point of sales.
• AI should be used to predict demand, or at least detect weak signals. More generally, AI for retail is now.
• There is no need to make distinctions between B2B and B2C anymore, especially with the rise of marketplaces and the necessity for retailers to remain attractive to brands, who will not hesitate otherwise to go direct to consulmer.

The article concludes on mentioning that superior technology is needed in the new normal, however, employees still dictate customer experiences and investments in that field will remain critical.

Store re-openings are not a return to normal