Bringing Lean practices to the retail space

Shoppers have changed. Over the past decade, new technologies have dramatically altered how consumers across the United States shop. First, the web enabled shoppers to research products, find the best deals and make purchases via their computers. Even more recently, many consumers have begun using their mobile smartphones and tablets as personal shopping aids.

Retailers need to respond to this shift in behavior. Many merchants have fallen out of relevancy because they continue to cling to more traditional business models, while others have risen to power by capitalizing on new buyer trends.

One strategy retailers can utilize to respond to the faster pace of today's shoppers is Lean retail. Lean retail consists of using technology and other tools to reduce costs, improve efficiency and encourage innovation. When consumers are making buying decisions based on the click of a mouse or a swipe of their smartphone screens, merchants need to be agile, and slow and wasteful processes prevent them from achieving that.

“Because leading retailers create trends and also follow them, data matters to them,” explains Cisco in a recent white paper. “Retailers need to try new ideas, see if they work, and find out how and what customers are buying. To execute business decisions, a retailer must account for the multiple ways consumers are making purchases.”

Lean retail

In the retail sector, there is a number of ways wasteful processes can impact business. Ineffective and bloated supply chains create costly delays that could impact sales. Antiquated point-of-sale software that is difficult to use may create long lines at checkout counters and negatively impact the customer experience. Additionally, a poor work environment could create unmotivated employees.

Whether retailers operate brick-and-mortar stores, online ecommerce sites or anything in between, there are myriad ways that ineffective, wasteful processes can slow them down. Applying Lean practices can lead to continuous improvement in all areas of retail.

Merchants need to take a critical look at the way they operate and ask themselves, “Can I do this task more effectively? What can I do to boost performance?” Everything from employee and workplace management to use of technology and equipment should be analyzed thoroughly to identify potential areas of waste.