Original research of over 100 senior UK retailers by Pricer revealed that inventory availability was the top in-store challenge retailers are looking to address this year (36%), while a further 34% will also focus their efforts in improving inventory accuracy.
This was followed by trying to address the rising costs of rents (35%) as well as improving in-store conversion (31%) and engagement (29%) rates.
Pricer’s consumer research shows that inventory issues continue to plague customer experience in-store, with out of stocks remaining a major bugbear for shoppers.
Original research of over 1,000 UK shoppers polled showed that now typically consumers find almost a fifth (18%) of the items in their weekly food shop unavailable on shelf when they shop in-store, rising +1 percentage point year-on-year. And, according to further Retail Insight research, 82% of shoppers have reported experiencing stockouts.
With rising National Insurance Contributions (NICs) and National Living Wage (NLW) from the October Budget, which came into effect in April, UK retailers face a £5.6bn surge in costs this financial year. This is prompting many to search for efficiencies to mitigate against the impact of these levies on their businesses.
Over a quarter of retailers (28%) polled by Pricer now want to address store operating costs due to the rising cost of labour, while a further 36% say they are facing greater pressure to save on labour hours or find productivity gains due to rising cost of wages.
Peter Ward, UK country manager at Pricer, commented: “Retailers are having to navigate the complexities of rising operational costs, shifting consumer demands and labour shortages. And this, up against a barrage of disruption, means many are turning towards innovation and automation to remain competitive and boost productivity, while maintaining customer experiences – not an easy circle to square.”
“By digital connecting the shelf-edge, retailers can automate and streamline key store operations, such as pricing updates, inventory availability and ecommerce picking, while also delivering customer engagement opportunities at the shelf edge and freeing staff to serve.”
