According to McKinsey, 10% increase in online penetration in the fashion industry triggered by COVID-19 might cause a reduction in fashion stores’ profitabilities by 5%, which could push many stores to the loss-making territory.
Retail stores are already under pressure from the increasing market share for e-commerce. The reduction in the number of shoppers and behavioural change in customers both triggered by the pandemic put the retailers into a perfect storm. Stores should seek ways to improve margins while taking advantage of any solution that will help navigate the changing customer behaviour and expectations.
Therefore retailers shall seek for new ways of improving profitability in the new reality. Digitalization and benefits of data-based decision making can be a key driver of profitability. Especially digitizing decisions related to personnel allocation, cashier quantity and route redesign can lead to cost reductions and sales growth by improving employee productivity, increasing customer satisfaction and finding potential efficiencies. Gaining insights on the performance of individual sales representatives and customer behaviours in the store have tremendous value for the store manager.
Udentify’s solutions include queue management, in-store analytics and store layout design. Udentify’s solution is also capable of actively monitoring the safe number of people in the store to boost customer trust. Fashion chains that Udentify serves in many countries are already leveraging these services to improve customer satisfaction, productivity and thus margins.
As McKinsey suggests, COVID-19 recovery will be digital and data-based decision making is the crown jewel of digital transformation for retail stores.
Udentify is aiming for the digital transformation of retail and providing its decision support-retail management suite as 3-month-trial during the pandemic to help retailers digitize their operations and thrive in the new normal.
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Mckinsey report we examined: https://www.mckinsey.com/industries/retail/our-insights/reimagining-stores-for-retails-next-normal