Retail is one of the fastest growing and most competitive sectors these days. Although, managing a retail store looks like a simple concept of buying from a manufacturer or a wholesaler and selling the goods at a profit to the end consumer. However, this is not as easy as it looks like. There are some peculiar challenges which retail organizations face on a daily basis like managing the accounting of their retail store, granularly analyzing the business expenditures and revenues, while keeping their customers satisfied and happy. As a result, it is common that both large and small retailers face impediments, whether it’s about maintaining a potential price point or serving customers interested in buying from their store.
This article highlights the top challenges that retail organizations are facing in this dynamic and evolving retail market ecosystem.
- 1. Managing Cash Flows – For most of the retailers, cash flow becomes irregular because of seasonal demand. During the winter holidays, many retailers maintains large stock due to high demand and generate a disproportionate share of revenue in the fourth quarter. Retailers often struggle to get deep insights into their financials due to which inefficiencies creep in their entire cash flow management process. As a result, retailers are now looking forward to partner with expert service providers who offer customized retail store accounting services and cost effective retail store bookkeeping solutions that can help them to timely forecast their sales and revenues enabling them to maintain adequate cash flows throughout the year.
- 2. Losses due to Crime – Regardless of security measures, stealing and shoplifting are drastically increasing and are creating more complications for retailers. As per a recent survey of National Retail Security, Employee theft accounts for about 45% and shoplifting accounts for 35% of losses. Managerial blunders and merchant deception respectively contributes around 12% and 5% to retail store losses. As retailers operate with extremely thin margins, therefore, losses due to managerial blunders can be extremely detrimental for their business. As a result, retailers are now keen to adopt retail store bookkeeping solutions offered by expert service providers that help them to automate their routine transactional processes and thereby reduce losses incurred due to human error.
- 3. Data Security and Information Management – Retailers usually access and often store confidential customer information such as credit card information on their platforms. With the advent of security breaches, it has become easy for hackers to steal credit card numbers and other sensitive information from the retailers that exposes their customers to risks like credit card frauds, identity thefts etc. As a result, retailers are now looking forward to gain access to next gen technological platforms that offers advanced security features at fractional price points. Retail store bookkeeping solutions and retail store accounting solutions offered by expert service providers like Quatrro enables retailers to upgrade their technology without making any upfront investments, and thereby help them to mitigate security related risks.
Conclusion – The industry is increasingly becoming competitive. Forward looking retailers are now partnering with experienced and established accounting services provider to overcome some or all of the challenges highlighted in this article. Quatrro specializes in providing cost effective finance & accounting solutions customized and tailored for the retail industry. We utilize best practice to standardize, optimize and automate labor intensive processes, resulting in significant cost savings and improved business insight for our retail clients.