RETAIL SECTOR
Compiled By Prashanthi Cooray
STAKEHOLDER DRIVEN STRATEGY
Raneez Sheriff explains how to formulate strategy with purpose and precision
Q: What factors guide your business strategy?
A: A crucial aspect of strategy development is defining precise objectives, as vague ones lead to ineffective or misaligned strategies. Accurately identifying the problem is also essential to strategy formulation – an aspect often underestimated in favour of ideation.
A well crafted strategy is rooted in a clear vision, shaped by past experiences and industry expertise, and strengthened by data and research. This enables leaders to extract insights and implement solutions that ensure the strategy’s success.
In fast-paced sectors such as fashion retail, strategies must be flexible to adapt to market changes. Competitive moves and macro-environmental changes can impact existing strategies, making it vital for strategic initiatives to stay alert and agile.
Q: How do you ensure that multiple departments stay aligned with overall business strategy?
A: It’s crucial that an organisation’s objectives are clearly understood by senior leadership, broader hierarchy and all departments.
For any strategy to be effective, it must gain the acceptance of all stakeholders. Furthermore, communicating the importance of the strategy across all levels drives synergy and success.
Successful implementation requires support from everyone involved. A healthy bottom line relies on contributions from all departments, and demands alignment and cohesion. For example, a thriving top line led by a strategic initiative can be jeopardised by supply chain inefficiencies or poor cash flow management.
So regular monitoring and evaluation of strategies – using key performance indicators (KPIs) to ensure effectiveness and timely realignment if needed – is essential.
Q: How do you identify and manage risks that could impact business stability?
A: Sometimes, you need to trust your instincts – after all, taking calculated risks can be a game changer. However, a deep understanding of the risks and solid mitigation plans are crucial.
Conducting a risk analysis using a practical matrix is essential in this process. Organisations can also utilise tools such as scenario planning to navigate uncertainties effectively. A clear understanding of strategic resources and capabilities can help create less risky, more sustainable outcomes.
Q: What KPIs do you prioritise to ensure that each department contributes to overall business goals?
A: In fashion retailing, aligning strategies with brand values and ensuring consistency in customer perception are key KPIs. Additionally, customer service must deliver a seamless experience, as the sector is about more than selling products.
Being customer centric and staying on trend through accurate forecasting is essential. This focus should extend across all departments – especially product development, visual merchandising and marketing – driven by continuous research and planning.
Employee productivity and motivation are also important, as engaged employees are the foundation of effective strategy execution and success.
Q: How do you balance financial goals while investing in marketing strategies for long-term growth?
A: In retail, it’s essential to consider each store as a profit centre. Some markets are highly price sensitive and require strategies focussed on pricing while others prioritise fashion as the key value proposition. Developing tailored sub-strategies is crucial to ensure profitability for each store.
It is also vital to look at marketing as an investment rather than an expense – this is a perspective that must be advocated by senior leadership. Investing in branding strengthens the connection between marketing efforts and customer willingness to pay for the brand.
However, marketing spend should align with revenue growth and be evaluated with an emphasis on returns. By carefully monitoring and optimising key ratios, organisations can achieve their financial goals effectively.
Q: How do you stay ahead of market trends to ensure the business remains competitive across physical and digital platforms?
A: The key is to view the business from the customer’s perspective.
Generations Z and Alpha, both digital savvy, are becoming the primary household decision makers when it comes to retail choices. Failing to adapt to their preferences and pain points can result in falling behind.
In fashion retail, physical stores are just as important as digital platforms. While some customers prefer online convenience, others value in-person shopping experiences, making an omni-channel strategy essential for delivering an enhanced customer journey.
Identifying pain points that drive each segment to specific platforms is crucial. Although most revenue may come from physical stores, the potential of online platforms cannot be overlooked.
Q: How do you approach talent development to meet evolving business needs?
A: Customer experience is a critical aspect of retailing and employees play a pivotal role in shaping it.
Every touchpoint must be thoughtfully managed to ensure that staff serve customers genuinely and with purpose. This requires attention to detail – i.e. from grooming and salesmanship, to service quality and product knowledge.
Equipping frontline staff with the right skills and decision-making authority, while adhering to standard operating procedures, is essential. And keeping the customer at the core is key to delivering an exceptional experience; this should be properly inculcated through a strategic talent development plan.
