How are retail SMEs coping with today’s economic uncertainty, and what are the challenges they face? Earlier this year, conference call service provider Conference Genie surveyed 250 UK SMEs across five industries including retail, to highlight the key issues and provide some solutions of its own …
50% expressed concern about engaging with audiences over Facebook
As online interaction becomes increasingly important towards making an impact in the retail industry, it is unsurprising that almost 50% of those surveyed expressed concern about engaging with audiences over Facebook.
When looking for social media inspiration, it can help to take a few notes from the major retailers that have successfully engaged with their audiences. Selfridges makes a fantastic example of this, with over 300,000 ‘likes’ on Facebook alone.
One of the most significant steps Selfridges makes is to engage with all of its audience through the predominant promotion of accessories, shoes and beauty products. These products are typically one-size-fits-all, and as such, ensure that all fans of the page find the recommendations accessible and relatable.
Over a third considered staff turnover and recruiting talented workers a challenge
Within the retail sector, staff turnover and recruiting talented workers are considered one of the biggest challenges, with more than a third of those surveyed citing the problem. Interestingly, when asked about maintaining a high level of staff morale, almost a quarter of those surveyed cited realistic workloads and performance management as being equally important.
So, are the three issues raised linked? One of the major obstacles when recruiting can often be the volume of those applying for the role, so selecting the ideal candidate can be difficult. When running a small, independent retail business, the interview process is one of the most important aspects, ensuring that the prospective employee is truly passionate about the brand and the products you are selling.
“Staff morale is important for all businesses, but for a retail start-up, it is essential. It is unsurprising, then, that almost 30% of those surveyed stated staff morale was the most important factor in improving productivity”
It is natural that, when working within the retail sector, the working day can become repetitive. By ensuring that employees are given the chance to discuss workloads openly with the manager, along with providing perks in the forms of staff engagement, socialisation and a chance to engage with the products, talented staff will happily retain their positions with the company and reduce the amount of staff turnover throughout the year.
30% stated that their biggest challenge is accessing finance from banks
Looking to the year ahead, almost 30% of those surveyed stated their biggest challenge is accessing finance from banks that seem reluctant to invest in small- and medium-sized retail businesses. But could this problem also be solved through the employment of talented workers?
During the initial start-up period, it is essential that those working for the business are passionate about the cause and have experience within the sector. Build the right team with complementary skills so you can all excel in your given areas – your business is a reflection of who you are. In a market saturated with part-time student employees, the certainty of a stable workforce can go a long way towards ensuring the success of the business past the start-up period.
When applying for loans and financing, it is essential that someone with experience is able to put together a business plan that accurately reflects the potential of the business. By hiring those with experience in retail, they will be able to contribute their thoughts and opinions about how the business can move forward and grow, whilst also showing your employees that their opinions and work are valued.
A quarter of people said investing in marketing and promotion was their biggest intention
Making concerted efforts towards investing in marketing and promotion was raised as one of the biggest concerns in the current financial year, with almost a quarter stating this as their intention. Marketing is famously difficult to get right, so what can retail SMEs do to make the most of their money?
Given that retail is a consumer-driven industry, it is essential to make a voice for the business, meaning that investment in marketing is a must. But, as shown by countless surveys, investing in an online presence may be more important.
While users typically prefer to buy certain products in store, the importance of online – and especially mobile – research cannot be underestimated. A huge 64% of shoppers research online before deciding to buy either online or offline, and the numbers are only increasing. Providing customers with a fantastic online experience, especially on mobile for those with a youthful customer base, serves as great advertising for the business without investing in additional adverts and promotions.
30% agreed that staff morale was important to improve productivity
Staff morale is important for all businesses, but for a retail start-up, it is essential. It is unsurprising, then, that almost 30% of those surveyed stated staff morale was the most important factor in improving productivity.
If you look after your employees, they will look after your business. Providing annual leave and ensuring an open, honest and friendly relationship as a manager will ensure that the employee feels as though they are given enough freedom to achieve a satisfactory work/life balance.
It is a misconception that employees are more concerned about the pay cheque above all else. For many young workers, work and employment can be a primary focus, especially when they have invested heavily in their education, so ensuring that the workplace is social, fun, and, most of all, engaging, will result in more productive employees.
Simon Prince is the marketing manager at Conference Genie, a simple and affordable conference call service provider, offering three different packages designed to suit the needs of businesses of all sizes. This article was featured in the October issue of Furniture News magazine.
