Recent Project and Job Topics > Industry Consultants
Retail Consultants
The retail industry sells products directly to consumers, usually via stores of varying sizes and specialization. Online retail also falls in this category, but from a consulting perspective, brick and mortar retail is a category unto itself. The retail industry is highly fragmented with a complex competitive landscape in every market, including department stores, discount stores, grocery stores, and specialty stores. Wal-Mart is the world's leading retailer, and some of the other large players include Tesco, Carrefour Group, and H & M, along with smaller companies competing fiercely in every category. The main threat to the industry is declining consumer spending during an economic downturn, as well as the shifting of spending patterns from offline to online retail. However, there is still room for strong growth in emerging markets, with local and international retailers rushing to expand their presence in rapidly growing economies.
Some of the unique challenges facing retailers include efficient supply chain management, store design and merchandising, and customer experience. As this industry is extremely complex operationally, consultants are often brought in to advise on operational issues such as inventory management, both for retail chains and individual stores using in-store inventory tracking. New technologies such as RFID tagging enable a high level of precision and automation in inventory management, with products being tracked from shipment to warehousing to distribution, and finally store check-out. Thus, retail inventory management is largely a technology challenge, so retail consultants brought in for these kinds of tasks often possess engineering and IT backgrounds.
Another retail challenge is understanding and serving customers. Every decision in store design, merchandise placement, and customer service is likely the result of extensive analysis aimed at maximizing sales. This practice is referred to as merchandizing. Optimization of retail stores within existing or new markets is a common consulting project within the retail industry. Improving the customer experience is another. Retail consultants undertaking these tasks need high level quantitative skills as well as a general understanding of the retail business. So much data is collected on retail customers, through in-store tracking as well as loyalty programs, that identifying and analyzing the relevant information is a massive challenge. Retail consultants must be able to identify, segment, and understand customers, then advise on changes to store design and customer service to test and implement processes resulting in increased sales.
Implementing any new processes in a retail environment presents the challenge of workforce management, since retail is fairly labor intensive. Structuring and training a retail workforce for new practices requires expertise in change management and organizational behavior. Companies may engage consultants with a background in psychology, or experienced managers who have led large and teams. Psychology and design expertise is also valuable for projects involving customer experience, from product placement on shelves, to store design, to the experience at checkouts or when dealing with customer service. Retail consultants with skills in these disciplines as well as up-to-date knowledge of industry best practices can greatly add to the efficiency and profitability of a retailers workforce management and customer experience. However, the best practices are highly dependent on the nature of the retailer's products - the customer experience in a grocery store and a luxury goods store, for instance, have little in common. Therefore companies usually prefer to hire consultants with experience close to their specific industry niche.
MBA & Company's network of consultants has engaged in a variety of retail projects globally, including consumer electronics, luxury goods, furniture, and more. Our clients and consultants cover the entire range of the retail sector, and matching them up for flexible and cost-efficient cooperation has resulted I many successful projects. Whether you are a retailer looking to improve a specific area, or a consultant with retail industry expertise, sign up to MBA & Company to get the right people and the right projects.
