Purposeful Planning:

Retail Quick Wins for a Successful Q4

Two critical junctures that send ripples across the retail landscape are the back-to-school and holiday seasons. These moments not only shape consumer behavior but also require retailers to fine-tune their strategies to seize opportunities and address challenges. While NRF predicts nearly a $25 billion increase in spending over last year for back-to-school, the holiday season is still undoubtedly the crown jewel of the retail calendar.

Typically, the holiday season also brings technical and strategic initiative lockdowns, as most retail resources are focused on successfully pulling the organization over the year-end finish line (amid the usual hiccups and disruptions). This lull is often a good time to reassess your company’s capability roadmap—or begin building one if not in place already.

Retailer concerns that the current consumer spending optimism may not continue through the end of 2023 warrant a focus on quick wins to mitigate some known challenges. This month, we outline key considerations in reviewing your capability roadmap and what retail quick wins may be achievable during the last quarter.

CONTENTS

Capability Roadmap Considerations

Retail Quick Win Opportunities

Final Word

Capability Roadmap Considerations

A capability roadmap is a strategic tool that outlines the necessary skills, technologies, and processes a retailer needs to acquire or enhance to achieve its goals. The roadmap considers the prioritization and strategic sequencing of initiatives, including quick wins, as well as medium- and long-term undertakings. We have helped many retailers and CPG companies develop capability roadmaps, and some recent considerations include:

Technological Advancements

Leading retailers are quickly embracing technology that improves planning capabilities, enhances the customer experience, and streamlines operations. For instance, implementing order management systems (OMS) or new assortment planning capabilities that have built-in analytics to react quickly can significantly impact a retailer’s ability to cater to the influx of customers no matter where or how they shop.

Supply Chain Optimization

Even prior to the pandemic, but more aggressively in its aftermath, retailers are focusing on enhancing supply chain capabilities to handle the increased demand and supply fluctuations. In many cases, this involves improving inventory accuracy across all locations (DCs, stores, and in transit), enhancing collaboration with suppliers, and implementing efficient allocation, replenishment, order fulfillment, and returns processes.

Data Governance and Analytics

Developing capabilities that enable more effective gathering, maintenance, and analysis of customer and demand-related data—including master data. It is paramount that retailers implement solid data governance structures and processes to ensure the data used for analytics and other systems is of good quality and consistently monitored. Good quality data results in more accurate demand forecasts, the design of relevant and personalized marketing campaigns, and the ability to effectively anticipate consumer preferences.

Check out our Expert Guide to Data Governance in Retail

Employee Learning and Development

From the front line in the stores to the planning and merchant teams, a retailer’s workforce plays a pivotal role in executing strategic plans. Investing in modern learning and development programs throughout the organization drives massive improvements in ensuring employees are equipped to handle the seasonal rush, provide exceptional customer service, and uphold the brand’s vision and mission. Further, improving learning and development programs across the retail enterprise has incredible power to strengthen employee loyalty and retention.

Agile Operations

Flexibility and organizational agility are key during peak seasons. It is crucial to develop capabilities that allow quick adjustments to strategies based on real-time data and market insights. This could involve implementing agile decision-making processes and cross-functional collaboration. We have often found that reassessing and redesigning business processes and weekly meeting structures (participants and agendas) has resulted in extreme efficiencies and better decisions. We encourage our clients to go fast but mitigate risk with a backup plan. Waiting until things are fully baked to try new ways of working will leave you further behind.

Sustainability Initiatives

As consumers become more environmentally conscious, integrating sustainability into a retailer’s capability roadmap can be a strategic differentiator. Many of our clients are exploring ways to reduce their environmental footprint, such as sustainable packaging, energy-efficient practices, and responsible sourcing.
READ our Expert Guide to Sustainability in Retail

Retail Quick Win Opportunities

Granted, we are mid-swing in the back-to-school frenzy, and the majority of retail buys for holiday 2023 are long in the books. However, there are some quick-win opportunities retailers can implement to help safeguard a successful season.

Here are some examples of recent quick wins Parker Avery helped our clients navigate:

  • Completed a rapid software selection for a major footwear retailer so that the deployment work can be kicked off in January 2024.
  • Implemented a new demand forecasting capability for a major food distributor with results showing improved demand signal in just seven weeks, looking forward to next season’s plans, buying, and production.
  • Assessed role efficiency and workload to ensure a multi-brand wholesaler’s workforce was focused on the right north star.
  • Streamlined strategic planning process and deployed a new planning calendar for a DTC fashion retailer to begin immediately with post-holiday hindsight activities.

Quick wins are small, targeted actions that deliver tangible and relatively swift results.

Final Word

The key to leveraging retail quick wins effectively lies in their swift execution and continuous monitoring. Develop a clear plan for each quick win, assign responsibilities, and set measurable goals. Track and evaluate the outcomes to assess their impact on KPIs, customer satisfaction, and operational efficiency. Then refine as needed. This iterative approach allows a brand to make necessary adjustments and refine capabilities based on real-world experiences.

Crafting a roadmap is just the first step in driving stronger capabilities. Implementation is where the rubber meets the road, and quick wins can help you achieve success while building your organization’s ability to deftly handle change.

If you find yourself with concerns as we steamroll through back-to-school and into holiday 2023, give us a call to talk about what quick wins may be achievable for your organization. We can also chat about how Parker Avery can help you develop an overall capabilities roadmap to strategically guide your organization through 2024 (and bonus: help you navigate NRF’s Big Show in January).

Contributors

Clay Parnell, President & Managing Partner

Clay Parnell
President & Managing Partner

Amanda Astrologo, Senior Partner

Amanda Astrologo
Senior Partner

The Parker Avery Group is a leading retail and consumer goods consulting firm that transforms organizations and optimizes operational execution through development of competitive strategies, business process design, deep analytics expertise, change management leadership, and implementation of solutions that enable key capabilities.

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Published On: August 16, 2023Categories: Amanda Astrologo, Capabilities, Clay Parnell, Consulting, Holiday Season, Newsletter, Retail, Retail Advisor, Retail Strategy, Roadmap, Solution & Capabilities Assessment