Innovation key to survival

The retail sector is particularly challenged at the moment as domestic spending is reined in.

 Facing continual squeezing of operating margin the quest is for innovative ways to drive sales.

The new buzz phrase in retailing is "multi-channel", loosely defined as a strategy that involves selling through stores, websites, mobile phones, catalogues, social networking sites, et cetera.

 Basically it is an all encompassing process designed to maximise sales revenues.

Recent data from the Office of National Statistics for December indicate the amount spent online accounted for 10.1% of all retail spending, excluding fuel.

In the food sector, the proportion of online sales rose 27% on the year. That meant that online sales now make up a record 3.7% of all food sales.

Not all business models can embrace this system but there has rarely been a time when the old adage of “work smarter” has been more relevant.

 As more and more obstacles are thrown up to threaten operating margins everyone in any commercial organisation must ensure that they are operating at optimum efficiency.

Retailers are pinning their hopes on “multi channelling” – but they are not the only sector having to radically re-think strategy in these turbulent times.