Coming out of COVID-19, retailers are under increasing pressure to determine how to make their brick-and-mortar channel work. Declining traffic, smaller teams, and more safety and in-store fulfillment tasks mean that the financial model must adapt if stores are to survive.
That’s where Precision Budgeting helps. By combining, and analyzing, all key store information in one-place, Precision Budgeting provides Finance and Store Operations with the insights and recommendations needed to make smarter decisions around how best to optimize a store network, the right sales targets for each store, and how best to allocate labor across the fleet. The results – the right number and types of stores across the network, realistic sales targets, reduced waste in labor spend, the ability to quickly address performance issues, and best positioning the store network to achieve long-term solvency.
Read below to learn how Precision Budgeting can help Finance and Store Operations drive efficiency, make smarter decisions, and increase agility across the store fleet.
Precision Budgeting allows Finance and Store Operations to have a laser focus on how stores are performing against key metrics within their control, providing a clear line of sight into how efficient and effective each store is using their allocated labor. Armed with this knowledge, Finance and Store Operations can adjust labor allocations to reduce waste, provide more resources where necessary, and make the right decisions on how best to adjust staffing levels when traffic increases.
Precision Budgeting helps Finance and Store Operations understand the potential of each store in their fleet. Leveraging advanced analytics, Precision Budgeting uncovers the sales effectiveness and efficiency of each store and then uses this data to make smarter decisions on how to utilize each store (push for sales growth, redeploy labor, increase profitability, etc.). The results are sales targets that are achievable for each store, labor budgets that ensure stores are as efficient as possible, and clear visibility into the risks and opportunities across the chain.
Precision Budgeting provides Finance and Store Operations with insights into how stores are performing, which teams are having successes and where improvements are required. The real time data enables Finance and Store Operations to quickly diagnose performance issues and adjust targets and labor allocations, and proactively address profitability issues within specific regions and stores before they spiral out of control. Given the uncertainty of today’s retail environment, this level of agility is essential to store survival.