After the strains of 2020 and 2021 most people are looking forward hopefully to some normality in 2022 but the landscape will inevitably be quite different to life before 2020.
Our blog ‘The perfect storm’ sets out clearly the reasons why the economic landscape is changing.
Most Charity Retailers have updated their retail strategies since Covid 19 and reviewed it every 6 months just as best practice however the 2022 strategy review is particularly important.
Why is the 2022 retail strategy review particularly important?
Consumer shopping habits are changing, but they were changing gradually before Covid 19 and all that has happened over the past two years is that the change has been accelerated. The sales uplift most Charity Retailers have benefited from since the reopening of the shops in April 2021 was driven by pent-up demand. This has temporarily masked the consumer changing shopping habits that has been happening for over the past decade and the data clearly demonstrates these changes are going to continue.
An example of the consumer changing shopping habits is that online shopping is currently accounting for around 27% of all retail sales (online charity retail sales is at 3.5%). In late 2019 online shopping was accounting for just over 19% of all retail sales, which is an incredible 8% growth in online sales in just 2 years.
During this period, some charities have responded by investing in online sales, new superstores and more staffing. However, within a changing, evolving retail environment, it is highly beneficial to review and update any retail strategy six monthly to ensure the business is on the right track not just for now but for the future. The reason for publishing the 2022 retail strategy checklist to help charities ensure nothing obvious is overlooked.
The 2022 retail strategy checklist top ten headings
A. Reviewing the current retail estate
- Complete the 6 monthly review of the net value of every retail shop: Profit + Donation value + Local fundraising importance.
- Consider changes to shops portfolio: Expansion, Consolidation, Warehouses, Donation Centres, existing shop locations, Superstores etc to ensure future proofing of the retail business.
- Review the current quality of retail reporting to ensure it meets best practice.
B. Optimising the existing retail business
- Review progress on use of retail space, pricing of donations and best practice implementation in every shop.
- Review the donation value levels per shop / donation centres against ideal requirements / best practice and the supply chain efficiency to ensure the right stock is in the right place for optimum sales balanced against the supply chain costs.
C. Modernising the e-commerce business
- Progress review of the integration and automation of the e-commerce business, including online selling platforms fully integrated to EPOS and logistics providers
- Progress review of the net profit of e-commerce to ensure it equals or exceeds best practice
D. Ensuring the retail team are your competitive advantage
- Review the volunteer numbers and ensure the best practice recruitment plan is achieving the desired results.
- Review the recruitment of staff (speed & quality) against best practice
- Review the upskilling of the retail team to improve their capability and skills.
If your retail business does not have an up-to-date Retail Strategy for any reason, then this check list is a suitable place to start. If your Retail Strategy need updating, then do use this check list to ensure nothing key is missed.
Sometimes having some external input can be very helpful, therefore if you need further advice or support, then please do not hesitate to contact the UK’s leading Charity Retail Consultancy.
Skyline Business Services are experienced charity retail leaders who offer a personal and bespoke service to our customers. These range from charities with small retail businesses or about to start out in retail to some of the largest charity retailers in the UK. The constant is everyone in our team is totally addicted to making a difference. Our team provide charities with the support they need to achieve their goals. Our breadth of experience and dedication empowers countless charities to optimise the return from their retail outlets.
If you would like to find out more about our Health Check or any of the other ways that we have helped so many charities with their retail business, please get in touch at email@example.com or on 0208 050 7514.