Five Ways to Avoid Retail Risk and Keep Business Humming

Dealing with the complexity of human experience every day comes with risk. Since 2010, volatility in the retail industry has increased by 250 percent reflecting just how dynamic and unpredictable the industry is, with problems stemming from the external environment as well as the day-to-day functioning of retail stores.

Following these 5 tips can help mitigate risks retailers encounter.

1. Maintain a safe space for customers and employees

Every retailer must abide by an exhaustive list of rules and requirements to operate and ensuring you’ve checked every single box can seem an overwhelming task. But these guidelines are what keep employees and customers safe,and following them will also prevent hefty fines.

The best way to do this is to put in place a comprehensive and accessible checklist, with visual aids to increase compliance and make instructions easy to understand. Each employee should be able to see an example of what a safe environment looks like, so they can act upon discrepancies or request repairs when appropriate.

One way is to have a centralised, digital set of standards that can include pictures and videos and be updated when necessary. A digital database like iAuditor can also streamline incident reports, eliminating paperwork and notifying management as soon as incidents occur.

2. Know the rules and stick to them

It’s essential for retailers to be aware of and strictly comply with up-to-date legislation. Whether it’s wages, discrimination, environmental responsibility or taxation, retailers can’t afford to slip up and face large fines and bad publicity.

Concious consumers care about whether they are purchasing from a responsible business that is mindful of its impact on broader society. Using iAuditor, retailers can ensure management across all stores has access to the same set of clear training guidelines—reducing the risk of noncompliance.

3. Keep on top of exactly what stock you have

Managing inventory successfully is essential for a successful retailer. Stock loss costs Australian retailers up to $9.3billion every year, and having too much or too little stock eats into the profits of any business. The most effective weapon for inventory management is a centralised, digital system.

iAuditor helps retailers to dramatically increase the accuracy of stocktake because data is easier to record and improved efficiency means that stock can be counted more frequently. A centralised system provides management with access to real-time data, increasing visibility and improving the capacity to detect and predict demand for stock.

4. Know how to shake things up

In an increasingly volatile market, successful retailers must have the capacity to be flexible. Excessive bureaucracies, rigid organisational structures and a lack of vision can all lead to a business becoming stagnant—and getting left behind.

A complex, dynamic marketplace requires innovative leaders and organisations that are able to build flexibility into their strategic planning. The right systems and processes allow retailers to discern when it’s time to change tactics.

5. Keep customer data safe

In our digital marketing, data-mining age, customers are very conscious of how their information is treated and what it’s used for. In order to maintain trust there has to be a secure system in place to protect customer data.

There are plenty of industry standards and regulations that relate to this, from the PCI DSS and GDPR to frameworks like ISO 27001.

In fact, going through the ISO 27001 certification process is a sensible move for any business that deals with large volumes of sensitive customer information, which is a given if you operate in the retail space right now.

Remember, this is an individual’s personal information you’re dealing with, and while it may be tempting to skimp on cyber security, your customers won’t forgive you if things go wrong.

With iAuditor, retailers can be assured that all of their data is secure and rigorously protected. One slip-up won’t spread like wildfire on social media and tarnish your brand’s reputation.

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Important Notice
The information contained in this article is general in nature and you should consider whether the information is appropriate to your specific needs. Legal and other matters referred to in this article are based on our interpretation of laws existing at the time and should not be relied on in place of professional advice. We are not responsible for the content of any site owned by a third party that may be linked to this article. SafetyCulture disclaims all liability (except for any liability which by law cannot be excluded) for any error, inaccuracy, or omission from the information contained in this article, any site linked to this article, and any loss or damage suffered by any person directly or indirectly through relying on this information.