Innovative Solutions in Retail: Insights from Wayne Harrand, Retail Director at MPK Garages LTD
CBE recently had the opportunity to speak with Wayne Harrand, Retail Director at MPK Garages LTD, about the pressing challenges and innovative solutions in the retail sector. Our discussion covered several key areas, including the impact of staff availability and labour costs on retail operations, strategies to manage these variables effectively, and the role of technology in enhancing efficiency and profitability. Wayne shared insights on how MPK Garages has navigated rising labour costs by implementing self-checkouts and digital shelf technology, leading to improved product availability and increased sales. We also explored innovative approaches to tackling shrinkage, adapting pricing strategies amidst fluctuating cost prices, and optimizing energy usage to meet sustainability goals while reducing expenses. Wayne’s expertise provided a comprehensive view of how retailers can leverage technology and strategic planning to thrive in a competitive and ever-evolving market.
In the context of retail operations, how is staff availability / cost of labour impacting retailers? What strategies / solutions can retailers use to manage these variables effectively?
Over the past four years, we have experienced a significant increase in labour costs. To mitigate these expenses, we introduced self-checkouts, which have effectively reduced costs and allowed us to reinvest surplus labour time into enhancing product availability. This strategy has led to a 2% improvement in availability and a 5% increase in sales per store. The impact has been particularly notable in larger stores, where basket sizes are bigger. Self-checkouts are especially valuable during off-peak hours, unexpected high customer volumes, and staff shortages due to illness. Additionally, data indicates that basket spend is higher at self-checkouts compared to manned tills.
Furthermore, the implementation of digital shelf technology has streamlined promotional changes, ensured pricing accuracy, and maintained compliance with safety regulations. This system has also reinforced our competitive positioning by displaying promotional prices and competitor discounts, such as the “cheaper than Tesco” message.
In today’s retail landscape, what innovative approaches can retailers to effectively tackle shrinkage, considering evolving consumer behaviours & technological advancements.
Both shop and fuel automation are crucial in reducing stock shrinkage. Stores must continue utilising OPT technology, self-checkouts, and digital shelf technology, as these systems allow staff to focus more on customers and manage the shopping environment effectively. Advancements in these areas enable staff to step away from the tills and concentrate on product availability within store ranges. This approach maximises staff time, driving sales growth by ensuring optimal product availability. Increasing staff presence on the shop floor helps prevent shrinkage and supports sales growth in an economically challenging market.
In light of fluctuating cost prices in the retail sector, how can retailers adapt their pricing strategies to maintain competitiveness while ensuring sustainable profit margins? Additionally, what measures can be implemented to mitigate the impact of volatile cost prices on overall business operations?
We have found that digital shelf technology plays a crucial role in allowing us to flex prices daily, delivering the best possible prices for consumers while maintaining optimal retailer margins. Centralised price control enables us to react quickly, retaining margins that would otherwise be lost due to delayed updates and unrecorded cost price increases. This approach has resulted in over a 3% uplift in margins, which continues to improve as we refine our model and adjust our range. By assessing best-selling prices and reacting to market conditions, we offer customers the best prices every day.
The insights from digital shelf technology ensure precise execution of range and planogram layouts, allowing us to engage in strong on-shelf promotions funded by supplier commercial income. Additionally, this technology provides accurate pricing daily, ensuring compliance with pricing and promotion regulations.
In today’s retail sector, with an increasing focus on sustainability and rising energy costs, how can retailers optimise energy usage to reduce expenses while meeting environmental goals? Furthermore, what innovative approaches can retailers adopt to offset the impact of escalating energy costs on their bottom line?
Retailers need to focus on all cost areas, with energy management being crucial as stores continue to consume higher amounts of power, especially with the advent of EV charging. We installed “Simbel Sense,” an energy management product, in our stores, providing insights and controls that reduced energy costs by over 10% per store. The system identified areas of excessive usage and targeted high-use sites to reduce consumption and costs.
ESOS compliance will be required for many top independent PFS, necessitating reports on energy consumption and reduction measures. The Simbel product and Carbon View product have enabled us to set clear goals and significantly reduce energy consumption across our estate. Detailed insights are essential for assessing business energy assets and consumption.
