Gartner Research

How to Ensure That Retail Consumer Shopping Habits Don't Eat Into Your Incremental Profit Plans

Published: 29 April 2016

ID: G00298569

Analyst(s): Tom Enright, Thomas O'Connor

Summary

Retailers are aggressively expanding their portfolio of consumer shopping and returns services, but in doing so must be mindful of not losing track of profitability. This research tells retail supply chain leaders how they can monitor and deliver incremental business profitability.

Table Of Contents
  • Key Challenges

Analysis

  • Implement a Cost-to-Serve Initiative to Understand Profitability of Each Fulfillment Method; Couple This With Volume Projections to Understand Overall Impact on Your Total Net Profitability
  • Analyze All the Cost Components of Processing Product Returns, and Link These to the Profitability of Each Fulfillment Method to Determine the Full Cost to the Business of Failed Sales When Products Are Returned
  • Interrogate All Consumer Transaction Data to Create Visibility of How Consumers Use Shopping and Returns Methods to See the "Digital Footprint" That Consumers Leave Through Your Business; Use This Visibility as Insight Into Your Future Net Profitability

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