As we enter 2022, retail brands that want to be successful in another year of change will pay extra attention to their supply chain, in-store audits and resets, and the impact of the labor shortage has on their inventory.<\/p>\n\n\n\n
The challenges that plagued 2020 and 2021, like supply chain issues and a tight labor market, will persist this year. But unlike past years, suppliers and retailers alike have given up that life will return to \u201cnormal,\u201d pre-COVID patterns. This isn\u2019t to say that\u2019s a bad thing. Retail has been facing massive shifts for years now. The current tensions are simply applying more pressure to existing weak spots. This year, we expect to see both suppliers and retailers invest in risk-mitigation tactics, like paying attention to their supply chain and getting more creative about the future of how inventory sells.<\/p>\n\n\n\n
Let\u2019s take a look at four main trends and what suppliers\nshould be looking out for.<\/p>\n\n\n\n
Those pesky shipping\ndelays<\/a> aren\u2019t going away anytime soon. But rather than sit back and hope\nthe wrinkles get ironed out on their own, retailers and suppliers are looking\nto invest this year in strengthening the lines they depend on. Besides large\nretailers chartering their own cargo ships, suppliers and retailers of all\nsizes will work to become more agile this year and minimize risk to their\nbottom lines.<\/p>\n\n\n\n What this might look like: rethinking where products are\nmanufactured, increasing investment to multiple shipping avenues, and\nrethinking how to project and meet consumer demand. <\/p>\n\n\n\n Holiday\nseasonal staffing was down 7.5% in 2021<\/a>. While not\ncompletely unexpected, it is a challenge that retailers will continue trying to\ndeal with this year. Despite perks, higher wages, and other changes to attract\nretail workers in 2021, health concerns, a competitive labor market, and COVID-19\nwill continue to result in retail stores not having enough boots on the ground\nto adequately ensure every supplier\u2019s inventory is set, reset, and accounted\nfor properly.<\/p>\n\n\n\n While there are many factors at play in why labor shortages\nare happening, the end result is that suppliers must be aware of the reality\nhappening in stores. Retail stores simply do not have the same workforce they\ndid before the pandemic. Even with the best processes and best of intentions in\nplace, retailers will not be able to ensure that your products are set,\naudited, and cared for once they arrive at stores.<\/p>\n\n\n\n The consumer\nprice index rose 7% in December<\/a>, the highest in 39 years. It\u2019s not just\nbecause the Federal\nReserve<\/a> is indicating that they\u2019ll raise the federal interest at least once\nthis year, for the first time in years. Retailers are also raising prices to\nsave their bottom line from missed sales due to the trends mentioned above and\nto keep up with the increase in hourly wages across the industry. With more\nuncertainty in their ability to meet demand, retailers will continue to push\nhigher prices. <\/p>\n\n\n\n This sharp increase in the cost of goods will further put\npressure on consumers\u2019 wallets, which could impact how they spend their\ndiscretionary income.<\/p>\n\n\n\n The key takeaway with this trend for suppliers is awareness.\nBe aware that consumers may spend less on non-essential items. Weave that into\nfinancial projections and take into account your own cost increases as\nbusinesses up and down the supply chain are contending with the same challenge.<\/p>\n\n\n\n Finally, we\u2019ve been hearing about the changing landscape of\nretail for years now. With e-commerce and curbside pickup, and pop-up shops,\nthe changes are exciting and persistent. Expect these evolutions to continue,\nespecially ones that will support more agile sales strategies, less labor, and\nless risk.<\/p>\n\n\n\n Suppliers can work with their retailers to learn what they\nhave in plan and decide if and how to best position their products for sales\nsuccess.<\/p>\n\n\n\n Now, for the most important thing suppliers need to know\nabout retail this year:<\/p>\n\n\n\n Do not assume that just because your inventory made it to the store it will be set, reset, or stocked as you want.<\/strong><\/p>\n\n\n\n This is not us throwing shade at retailers, just being\nrealistic. Retail employees are doing their very best. Unfortunately, because\nof the decreased number of workers on the floor and the higher demand for\ncurbside orders placed, products on the salesfloor are slipping through the\ncracks.<\/p>\n\n\n\n The only way to make sure your inventory is poised to sell\nis to keep an eye on it yourself.<\/p>\n\n\n\n Not to worry, it\u2019s much easier to manage your in-store\ninventory than you may think. And no, you don\u2019t have to go in yourself and walk\nthrough the aisles.<\/p>\n\n\n\n The solution? Partner with a third-party service that can be\nyour eyes in the store and, when needed, an extra set of helping hands.<\/p>\n\n\n\n Benefits of partnering with a third-party merchandising\nservice:<\/strong><\/p>\n\n\n\n As a best-in-class, third-party service provider, we know\nexactly what it takes to make sure your products succeed in retail locations.<\/p>\n\n\n\n Our best-fit service for brands looking for an extra pair of\neyes and hands this year? Our audit, starting at\nless than $10 per store<\/a>.<\/p>\n\n\n\n We\u2019ll make sure that your inventory isn\u2019t forgotten in the\nback room and that the product that is on shelves and especially those precious\nendcap locations is exactly how your planogram said it should be.<\/p>\n\n\n\n Get a jump start on your sales and contact us today!<\/p>\n\n\n\nTrend 2 \u2013 Labor Shortages <\/h3>\n\n\n\n
Trend 3 \u2013 Inflation <\/h3>\n\n\n\n
Trend 4 \u2013 Evolving Retailers<\/h3>\n\n\n\n
Why You Can\u2019t Sit Back and Relax Once Inventory Arrives at the Retail Location<\/h2>\n\n\n\n
How to Keep an Eye on Your In-Store Sales<\/h2>\n\n\n\n
How can Retail Merchandising Services Maximize Your Sales?<\/h2>\n\n\n\n