In retail, a chain can be two stores in neighboring towns, or a huge multinational like 7-Eleven with its 80,000-plus outlets in 19 countries around the globe. But whether an operation is large or small, as soon as a retailer moves from one to multiple stores, they enter a different world of challenges.

We take a look at the challenges of multi-location retail management and how a cloud POS for mid-market retailers or a cloud POS for enterprise retailers can help to address them.

Challenge 1 – inventory management for multi-location retail

Inventory management becomes more complex – and more important – as the number of locations grows. Stock visibility can potentially have a significant impact on customer experience: if a customer doesn’t find what they want in store, but the retailer knows they have the item in another store and offers to deliver it, then the customer is likely to consider that a very positive experience. On the other hand, not finding the item and not being offered any information will likely see them turn their back and not return.

A sophisticated POS solution will provide the retailer with a single view of inventory, enabling a better customer experience, avoiding lost sales, and increasing revenue.

Challenge 2 – operational efficiency

Increasing the number of stores in a chain has the potential to increase complexity – so chain retailers must find efficiencies. For example, implementing the same policies, employee management, systems and training across all stores, driving efficiency and ‘maximising time allocated to create customer value’.

Implementing a single, sophisticated POS solution across all locations, allows retailers to follow the same processes in every store, have a single training program for all staff, and move staff between stores. It allows them to benefit from the economies of scale for maximum efficiency.

Challenge 3 – Standardizing IT systems

Multiple stores, especially if they have been gained by acquisition, can easily end up with a range of different IT systems and/or older technology. They have to spend time and money managing data security for sharing information and maintaining different hardware and software platforms.

A modern, sophisticated POS solution that offers cloud POS for enterprise retailers helps to standardize multi-store operations. With a single software system, stores eliminate the risk of having multiple versions in different stores. Centralized management means that stores don’t need their own hardware and IT staff, and everything can be managed from head office.

Challenge 4 – Customer Experience Consistency

A chain is a group of stores with the same branding, the same products and the same service values. Therefore customers expect the same experience, whether they’re in their local store or on the other side of the world. Customers expect a consistently high level of service every time they interact with the brand.

POS technology helps retailers to provide a consistent omnichannel retail experience across all stores. They can offer the same level of personalised checkout service, the same in-aisle mobile POS service, the same loyalty programs, and a consistent approach to promotions and offers.

Challenge 5 – reporting and analytics

A retailer with multiple stores must be able to budget, forecast and track at individual store level and also manage costs and profitability for the chain. They need real-time data to quickly spot trends or issues in a single store, and also see the big picture at the chain level.

A sophisticated POS solution is built for multiple store operation and offers reporting and analytics at store level data or the entire retail chain. It can ensure each store only sees its own data, whilst giving head office full visibility. It provides analytics and dashboards that allow operators to drill down into an individual store, region or country for insights that drive immediate action, or get a clear strategic picture across the whole operation.

Challenge 6 – Scalability

Retail chain operators have to be able to scale efficiently if they are to grow whilst avoiding the complexity that often accompanies expansion.

A cloud-based sophisticated POS solution is designed for rapid and efficient growth. A scalable POS system means there is no need for the retailer to put on-premise hardware in place before expanding – cloud infrastructure expands on demand, to support the retailer’s business growth.

Operating a retail chain has its challenges, but a sophisticated modern POS can help to address them and enable scaling and growth.

FAQs:

What if stores are in areas with very different competitive landscapes? How can a sophisticated POS help with localised marketing?

Of course it’s essential that every store in a chain is able to respond to its market – in terms of consumer demands and local competitors. A sophisticated POS solution enables retailers to run promotions that are tailored to each specific store. Data analysis helps them to research customer behaviours and preferences by store or region. The promotions engine ensures that retailers can create and launch promotions based on criteria specific to an individual store or regional group, maximising customer satisfaction and loyalty.

POS isn’t the only software platform in my retail chain – how can I ensure it works, for example, with my ERP?

A sophisticated POS solution is designed to integrate seamlessly with your ERP. A state-of-the-art solution will have deep integrations with major ERP systems such as Sage, SAP and Microsoft Dynamics, and APIs for integrating to all other platforms. Retailers can easily share data between ERP and POS and gain useful business insights from the information across systems., all without needing a team of programmers and IT staff to make it happen.

Content Sources:

IBM

Deloitte

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