3 min read
Lately, media headlines have been riddled with news of major retailers and consumer brands announcing significant workforce reductions and restructuring plans. Walmart, Wayfair, and Macy’s are just a few companies trimming their corporate headcounts to manage costs and streamline operations. With such large-scale job cuts, the pressure is on for these businesses to maintain efficiency and service their customers effectively with a leaner team. So, what gives?
As retailers pivot away from traditional staffing models, automation is key to navigating change. By integrating advanced technologies like Product Information Management (PIM) softwares, content syndication systems, and advanced payments technologies, retailers are reducing their dependence on back-office staff while enhancing operational efficiency. In this piece, we’ll explore how automation in these areas can support cost savings and drive better outcomes for your retail team.
We’ll dive into:
- Addressing the challenge of workforce reduction in retail
- Is automation the solution?
- Integrating PIM and payments technologies
Addressing the Challenge of Workforce Reduction in Retail
Between inflation, shifting consumer behaviours, and labour challenges, the retail sector has been hit hard in recent years. Since the start of 2023, several major brands ranging from department stores to direct-to-consumer brands have announced plans to cut staff.
- In May, Walmart announced plans to cut hundreds of jobs at its corporate headquarters and relocate remaining staff from across Canada and the U.S. to three offices.
- As sales continued to fall, cosmetics giant Estee Lauder announced a 5% workforce reduction as part of a corporate restructuring plan in February.
- Wayfair’s CEO announced a plan to lay off 13% of its workforce in its third round of layoffs in 18 months in January.
- Major department store chain Macy’s announced the closing of five stores and layoffs for over 2,350 employees earlier this year.
- Levi Strauss & Co. announced plans to cut 10-15% of its global corporate workforce during the first half of 2024.
- Projecting a reduction in earnings this year, Hershey’s announced a restructuring plan that included layoffs for up to 5% of its workforce.
- Sports retail giant Nike planned to layoff more than 1,600 workers, or about 2% of its workforce, after reporting weaker profits this fiscal year.
While these rightsizing efforts are often made to recreate balance in a business, reducing staff brings its own set of challenges. It calls on fewer resources to keep operations running smoothly, properly service customers, and maintain the financial success of the business. But with remaining staff left to take over additional duties, retailers may struggle to maintain the quality and consistency they strive for—potentially hindering the company’s performance in the long run.
Is Automation the Solution?
Automation technologies including PIM softwares, content syndication tools, and payments technologies offer a practical solution for retailers looking to do more with less. Here are some of the benefits of automating your inventory management and payment processes:
1. Reduce Costs
Automation lessens your reliance on a large back-office team by reducing repetitive and data-intensive tasks previously managed manually. This allows you to achieve more with fewer staff resources, leading to significant cost reduction. Research from Deloitte finds that organizations implementing intelligent automation into business processes are seeing cost savings of up to 32%.
2. Enhance Efficiency
Today, 76% of businesses are using automation to standardize daily workflows. With automation, retailers can streamline product information management and content distribution processes. PIM systems ensure that product data is consistent, accurate, and readily available across various channels, while content syndication tools facilitate seamless content updates across multiple platforms and online marketplaces without manual intervention. Integrated with advanced payment technologies, these systems work together to create a more efficient workplace and smoother customer experience.
3. Improve Scalability
Automation technologies are designed to scale with your business growth. As your company expands or adjusts its operations, these tools can adapt without requiring proportional increases in staff. According to McKinsey, 30-40% of merchants' tasks are automatable. Without automation, the headcount for managing those activities would need to fluctuate in proportion to the business growth—but with automation, the headcount for managing those tasks remains the same.
4. Make Employees Happier
Automation doesn’t just help you strengthen business metrics—it can also improve your employee satisfaction. Nearly 90% of staff agree that they’re more satisfied with their job since they started using automation at work, and 84% were more satisfied with their employer. Automation allows them the time to deepen relationships with customers, learn new skills, and take on new challenges at work.
Integrating PIM and Payments Technologies
Integrating PIM solutions and content syndication systems with your payments technologies can be transformative when it comes to achieving efficiency in your retail business.
Jasper and Venzee, our all new AI-enabled Product Information Management (PIM) and content syndication platforms, make it easier than ever to launch your products across multiple eCommerce marketplaces. As your single source of truth for product data, they empower you to syndicate to any selling channel—from Shopify to Amazon and beyond—in just a few simple steps. This helps you get your products to market faster and reduces the need for manual intervention.
With these solutions, your retail business can:
- Stop tripping over spreadsheets and database imports and exports
- Improve speed to market with efficient product mastering and merchandising
- Boost workflow efficiency by tracking incoming and outgoing inventory
- Easily schedule content updates for sales and promotions
- Manage multiple brands and product categories
- Organize and merchandise products across various digital storefronts
By combining the power of Jasper and Venzee with our integrated digital payments technology, you can enhance operational efficiency, reduce manual processes, and position your retail business for scalable growth.
Embrace Automation for a Leaner Future
The shift towards automation isn’t just a reactive response to the current market fluctuations in retail—it can be a proactive, strategic move toward more efficient and cost-effective operations. By leveraging PIM and content syndication systems, along with streamlining your payments technologies, you can not only weather the economic headwinds but also position your business for long-term success. Interested in learning more about how DCGroup’s ecosystem of retail tools can help you navigate the retail shift?
Reach out to book a demo today.