Boosting Operational Efficiency in a Retail Space

San Antonio, Texas, executive Reid Hackney worked in retail finance for more than two decades before retiring. During his time as senior vice president of finance and CFO for the Dressbarn brand, the Penn State graduate spearheaded the growth of the company from 40 to more than 2,500 stores. Reid Hackney’s work at the company included boosting operational efficiency.

Operational efficiency in a retail space centers on the shopping experience. A good shopping experience affects customer retention and acquisition. When customers have a good experience at a store, they will rave about the service to friends, family, and others. This word-of-mouth marketing is free to companies and helps bring in new customers for less than traditional marketing efforts. 

Meanwhile, great experiences entice customers to return to a business on a repeat basis, increasing their total lifetime value and boosting company revenue.

Operational efficiency in retail also depends on inventory management and automation. Automated systems prevent retailers from overselling products, since they decrease the chance that inventory information will be incorrect. When inventory is accurate, customers are disappointed less often, and have an easier time finding the products they want. Better shipping processes that offer improved order fulfillment, improved synchronization between online and brick-and-mortar stores, and tidier warehouses also play a role in operational efficiency.