The Logistics of Retail Expansion

It can be an extremely testing and stressful time for retailers, particularly when trying to balance ongoing costs with new expenditure.

I’d even go as far as saying that most multi-store roll out plans are a logistical nightmare! Having been involved in this process for a number of mainstream retailers, we've devised this tried and tested 8 -step plan to ensure the process goes as smooth as possible.

1) Start with the correct hardware choices -  Store expansion could require a change in store reporting requirements, solutions which embrace new technology concepts such as beacon technology, WiFi capabilities etc. Remember however that manufacturers aren’t likely to recommend a competing brand over their own models, so independent advice is recommended.

2) 360 technology assessment - There are many factors that will affect the choice of equipment used in a new store and even the positioning, which is why it is critical to have a site assessment conducted early. During an idea assessment, specialists will audit what you already have, ascertain what you need and provide cost-effective planning to ensure the deployment goes smoothly. For all new projects there should also be a roll-out programme, risk register, change control and action log, installation procedures, build instructions, site sign-off documentation, schedule installations and any other ad-hoc requirements, such as a wireless survey. 

3) Key task responsibilities - Next, you need to have a clear idea of who is responsible for doing what. Think about issues such as data migration, hardware customisation with site specific detail, data loading and testing. When it comes to launch day, who will have responsibility for walking the floor to solve any teething problems during the first few critical days?

4) New or refurbished equipment? It is well worth exploring the pros and cons of recycling your existing hardware within your store network, as there could be significant cost savings to be made compared to buying in completely new equipment. That said, with the rapid pace of change when it comes to the technology that consumers are demanding, it may also be necessary to check that current systems can handle any new requirements you might require. 

5) PCI Compliance and P2PE Encryption - PCI Compliance continues to be a major issue for retailers, as is P2PE  (Point to Point encryption).  Whilst these are the standards that the bank asks all retailers to meet, they are expensive and we know that some retailers are still choosing to take a risk of exposure over the cost of being compliant. However, as your store portfolio grows, this becomes a risk you simply cannot afford to ignore. 

6) Staff training - Many retailers often underestimate the level or scope of training needed, assuming that it is limited to understanding how to operate the cash register. The reality is that there is often a need for more detailed equipment and procedure training to ensure the smooth running of the store on open day. 

7) What technical support is needed? - Multi-store operations clearly have more intensive requirements as they are dealing with enquiries from many different stores and long waiting periods for help or call-backs can be detrimental to both new and existing stores. Whether you decide to manage the technical support in-house or to out-source, be sure to assess current capacity and if necessary, bring in additional resource to cover any new store openings as demand is likely to increase during these periods.

8) Prevention is key- As your portfolio of stores increases, so does the need to take preventative steps to ensure your systems remain up and running for as much of the time as possible. Again this can be conducted in-house or outsourced to a third party provider. Whichever way you choose to manage this process, it is an approach that has been proven to reduce failure rates, increase reliability, and “bring forward” potential equipment failures in order to protect your IT systems for those peak times when downtime could severely impact performance and sales.