A recent McKinsey & Company study reveals that consumer sentiment has improved slightly in 2024. However, there is an increase in trading down, with 74% of consumers now opting for cheaper brands compared to 68% in April 2022.
With shoppers seeking lower-cost alternatives and prioritizing essential purchases, retailers have to find ways to meet customer expectations without compromising their profitability. This means improving retail store productivity.
What is retail store productivity?
Retail productivity describes how efficiently a store utilizes its resources, especially its staff, over a specific period of time.
The goal of improving productivity is to do more with less: to boost sales, improve customer service and run operations smoothly, all while working within the available resources.
That’s easily said, but where do you start?
To measure is to know
The first step is to evaluate your current store productivity. Monitoring the chosen metrics over a longer period of time helps to level out any temporary fluctuations and provides a clearer view of employee and store performance.
Typically, this is measured by the amount of tasks completed and how much time it takes to finish each one of them. The goal is to get more done in the same – or even less – time.
To enable their employees to manage additional workload, many retailers turn to technology for support, from electronic pricing labels to employee apps. Not only can technology help increase productivity, but it also enables employees to fulfill tasks more accurately (e.g., inventory counts) or to improve customer service.
Empowering employees through automation
Automating repetitive tasks can make a big difference in retail productivity. It allows staff to focus on more critical tasks, such as assisting customers on the sales floor or restocking shelves, thereby improving overall store operations.
Let’s explore some concrete applications in two areas: inventory management and checkout processes.
Inventory management
Advanced inventory management systems use real-time data to track stock levels, predict demand, and automatically reorder goods. These solutions also integrate with order fulfillment systems to streamline picking, packing, and shipping for both in-store and online orders.
A key component of such modern systems is a robust barcode system, based on scanning technology with advanced features such as multi-scanning and batch-scanning. These scanning modes enable employees to capture multiple barcodes simultaneously or in quick succession and, for instance, accelerate inventory counts.
It is particularly useful in high-volume retail settings, where employees can scan entire shelves or pallets of products in one go, rather than scanning every item individually. A task that used to take hours is now completed within minutes.
Another scan-based technology, Pick by Scan, is far more efficient than paper pick lists. Here, an app shows employees what items to pick, where the storage location is, and how many items are needed. Furthermore, it gives them immediate visual confirmation when they scan the barcodes, minimizing mistakes.
Checkout processes
Self-checkout technologies, like Scan and Go, enhance the shopping experience and operational efficiency. By allowing customers to scan and pay for their items independently, they help them avoid long queues, especially during peak shopping times.
A recent survey revealed that Scan and Go technology is gaining popularity among U.S. shoppers. Self-scanning and -checkout is now one of the top features consumers expect in a retailer app, alongside coupon scanning and a real-time product availability checker.
Apart from meeting consumer expectations, self-checkout technologies also increase staff efficiency. One employee can oversee multiple self-service stations, freeing up cashiers during slower periods.
Leverage data for further improvements
Retail technology is also a treasure trove of useful data.
By analyzing inventory metrics, for instance, retailers can optimize stock levels and reduce waste. Meanwhile, insights from self-checkout and Scan and Go systems reveal customer preferences and purchasing patterns, allowing for improved store layouts and personalized promotions.
Utilizing this data helps retailers to make informed decisions, adapt quickly to market changes, and enhance customer engagement. Ultimately, smart data use drives in-store productivity, completing the circle by providing insights for further improvements.
Boost store productivity with Scanbot SDK
Looking to integrate scanning technology to enhance your productivity? Scanbot SDK’s barcode and document scanners can be seamlessly integrated into existing mobile apps or websites. Because they operate entirely offline, we can guarantee data privacy.
Scanbot SDK is your trusted partner for barcode and document scanning. Retailers like Procter & Gamble and Coop use our Barcode Scanner SDK to optimize their inventory management, integrate Scan & Go, and enhance customer engagement.
Want to discuss your use case with us? Get in touch!
