With a recession forecasted for the UK, during the latter parts of 2022 and well into 2023, retail businesses are anticipating a turbulent duration ahead. However, with a constructive approach to managing a business, there is hope for UK retailers to weather the storm and create new opportunities and growth, thereafter.
Recession takeaways to assist businesses
Work your inventory harder – For current stock, ensure that best-selling products are always in stock. In terms of old stock, “Converting inventory into cash can be a real salvation”, according to Sherry Smith, director of The Edge Retail Academy. Old stock or misjudged purchases can take up a lot of space, in the hope that they will still one day, be sold for a profit. Instead, cut the losses and sell them off for a discounted price which will at least reap some money into the sales ledger, whilst making new storage space along the way.
Build money reserves – With unpredictable sales forecasts, it is extremely important that retailers hold back some profits into a reserve account. This will help to keep everything up and running and means that rents and operating costs can still be paid throughout the quieter months when sales are down.
Create a lean team – Consider all employee roles to review strengths and weaknesses. If the model feels top heavy in terms of staff vs sales, then it could be time to let some employees go. Keep the best and those that are most committed and investigate how you can build the business based on their strengths.
Outsource services – The beauty about outsourcing is that you will only pay for what you use. This means that the business will not endure wasted man hours, neither holiday nor sickness pay. Consider where services could be outsourced such as customers services, marketing, and financial support to make the most from your yield.
Improve marketing – When sales downturn during a recession, a popular business reaction is to cut the marketing budget. Unintentionally, this can have an adverse effect as businesses without regular promotion, often dissolve into the mist. Alternatively, companies should take the opportunity to build their brand and maintain regular methods of communication through digital and offline advertising, whilst regularly measuring marketing performance to further understand their customer base.
Contact Centre Support
Our team at WeAnswer provide outsourcing customer contact centre services to retail businesses across the UK. To find out how we can assist your company with customer support communication, ranging from 1+calls and out of hours, evenings, and weekend services, please get in touch or see our website for more details.