INTELLIGENT VERTICAL: RETAIL
retail environment, this is perhaps one of the biggest threats faced
by organisations today. To address this, retailers are differentiating
themselves with more effective front-line sales staff. From an HR
perspective, this requires moving to more permanent employees,
reducing high staff churn and increasing investment in training. This
planning is often disconnected from the financial impact it will have
on the business. And when there is finally agreement on the costs
versus the deliverables, the resulting HR strategy is quite different
from the intended one.
Predictive forecasting
In most organisations, remuneration is linked to budgets. In other
words, budgets will only be approved based on adequate growth
determined by the latest applicable forecast, setting the scene for
the start of the traditional ‘budget games’. This entails each side
attempting to anticipate the others’ next move. The problem with
this is it is predominantly internally focused and built for individual
preservation. The external market, benefits of innovative change
and achievable opportunities are often deprioritised to ensure a
safe budget. In terms of budgeting and planning, most CFOs need
to understand whether the last forecast before the budget cycle
commenced has been manipulated to produce a low budget. There
are several processes and technologies available to finance teams
that allow them to test the likelihood of business units achieving
their forecasts relevant to both prior year and current year trends.
This enables them to challenge forecasts with system-generated
probability assessments and ensure an accurate view of the year-end
forecast in the final quarter.
So, not only does this more accurate predictive forecasting create a
more realistic platform for the generation of budgets, it also leads to
more predictable business leads, better decision-making, improved
stakeholder confidence, and improved financial productivity. Working
with a trusted partner that can help the retailer’s finance teams
transform their financial planning and analytics processes becomes
an important part of this transformative approach. Moreover, such
a service provider should have experience in implementing complex
planning and consolidation transformation projects that deal with
the unique local market conditions. The partner must therefore
be able to make the transition from global best practices with an
understanding of the South African retail environment.Financial
planning in retail is transforming. How effective your business will be
in dealing with this change will be up to you. n
Driving the in-store
brand experience
Cecil Ungerer, Chief Sales Officer of in-store advertising innovators
Smart Media, says that, in the highly competitive environment of in-store
advertising, brands are contesting limited market share.
C
onsumers have become more
discerning of what they buy
owning to the availability of
product information online. It is therefore
imperative to cut through the clutter and
create a 360-degree retail experience.
Already, brands are shifting their above-
the-line (ATL) spend to in-store media
opportunities. The importance of visibility
at retail outlets that have significant footfall
cannot be overstated. Never has the saying
‘out of sight, out of mind’ been more
relevant. If consumers do not see a brand
and get the opportunity to experience
it