Performance Management for RetailA. Industry background

The retail Industry is focussed on selling consumer goods and services to customers using a range of distribution channels in order to turn a profit. The retail sector is closely associated with the wholesale sector (which supplies retailers), the logistics sector (which links wholesalers and producers with retailers) and the manufacturing sector which creates the goods sold by retailers. The retail sector is composed of shops, department stores, supermarkets, market stalls, door-to-door sales and e-commerce retailers. Roles such as cashiers, sales assistants, buyers, stock-takers, shelf replenishment and merchandisers make up the majority of the retail workforce. The move to online retail has seen a growth in retail roles such as warehouse assistant, call center advisor, personal shoppers and delivery drivers.

B. Key challenges

The retail sector is going through a challenging period as high streets increasingly come under pressure from e-commerce. Customers are embracing the culture of online retail as opposed to the face-to-face shopping experience.

Estimates suggest that the online retail sector grew from about 5% of all retail sales in 2008 to nearly 20% of all retail sales in 2018. The associated decline in brick and mortar retail stores, particularly those of large global retail chains, that has been occurring over this period is referred to as the retail apocalypse. In 2019 alone, there were 9302 retail store closures in the US, which represented a 59% increase from the previous year and the highest number since records began. This decline in bricks and mortar retail is being replicated across the world and has no doubt been accelerated by the pandemic where government decrees forced many stores to close, pushing even the most committed bricks and mortar shoppers online and forcing many retailers into bankruptcy.

This represents a massive opportunity for retailers to transform their bricks and mortar business model to an e-commerce or hybrid version. Established online retailers like Amazon and Walmart had a head-start and the traditional retail organizations face a significant challenge to gain ground on these e-commerce trendsetters. Digital transformation, supply chain transformation and moving the storefront online are some of the key challenges facing the retail sector.

performance-management-retail-sectorC. Solutions offered

AssessTEAM is uniquely positioned to help retail organizations develop and sustain world-class business model transformation practices, service delivery processes, and supply chain management by bringing the focus on their human capital management.

1. Job clarity through clear communication: Now create your job performance KPIs for various positions including store managers, cashiers, inventory specialists, operations team and the sales associates which are specific to your retail business. Create (custom) evaluation schedules for different teams to identify and improve team performance before the skill-gap turns into process bottlenecks.

2. Traditional storefront team performance evaluation using the AssessTEAM mobile app: Evaluate your storefront employees over a mobile app. Supervisors do not need to use a computer or paper form. Feedback can be quick and effortless. AssessTEAM supports annual reviews, 360 feedback, real-time feedback, and makes things fun with optional emoticons too.

3. Ecommerce Migration: As you transform from bricks and mortar retail business model to an ecommerce model you’ll move from a largely co-located resource model to a more distributed resource model including web developers, call center staff, personal shoppers, delivery drivers etc.

Your distributed service delivery teams can use AssessTEAM’s entirely cloud-based real-time appraisals system on any internet-connected computer or mobile device. Our highly automated performance management process enables you to appraise your staff in a 360-degree format using both technical and behavioral competencies. Powerful dashboards provide real-time performance monitoring which is essential for rapidly transforming retail organizations.

4. Project Performance Evaluations: Retailing organizations are becoming increasingly reliant on project management in order to rapidly transform to an e-commerce business model. With success being dependent on the synergy and performance of retail transformation project teams, the project evaluations enable you to evaluate their group members (including managers) for their performance on specific projects and receive feedback from the customers. The project performance evaluation reports present you with illuminating aggregated performance data including comparison metrics, making it easy for managers to quickly identify high performers, low performers, and outliers to take appropriate HR action.

5. Customer Feedback Integration: Customer feedback is critical to the success of service delivery projects in a customer-centered retail environment, AssessTEAM integrates a collection of customer feedback for projects delivered, this becomes the 5th metric that’s tracked in addition to self, peer, supervisor, and downward evaluations. Customer feedback requests can be sent out in bulk to gather data on how various departments are performing in terms of customer satisfaction.

Retail KPIs

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