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In order to manage risks in the retail sector, there are a number of key areas which must be covered. These include problems with theft, staff training and the strength of your supply chain. However, there are also various contingencies you might not have explored, but which are increasingly important in the current retail landscape.
According to recent research, foot traffic in retail stores in the UK has slumped the most since the Covid pandemic. Nonetheless, spending is actually up and a surprise surge in sales in the UK suggests the economy is recovering. More good news is that the retail industry is predicted to grow in the coming years.
However, shoplifting continues to be a big problem for most retail businesses. According to research reported in the BBC, the number of incidents increased by 24% in England and Wales in 2022-2023. Supermarkets in particular have been popular targets, which has been partly attributed to the cost of living crisis.
New World Norm is dedicated to helping businesses all over the world, including those in the UK, manage risks more effectively.
Managing risks in retail means being prepared for any negative, impactful event that has at least a small probability of occurring. Common risks to retail businesses in the current climate include:
Our experienced experts carry out a thorough risk assessment.
This will assess the likelihood and potential impact of each identified risk on your retail operations. New World World can determine which risks are most significant and prioritise them based on their potential impact.
Our consultants can provide you with independent advice that helps you develop exceptional safeguarding measures.
We then work with you to develop effective strategies to manage or mitigate them. Risk management in the retail industry is vital for implementing internal controls, diversifying suppliers, investing in cybersecurity measures, purchasing insurance, and establishing emergency response plans.
Our work ensures making your supply chain more resilient. There are a number of ways to do this, including by diversifying suppliers, maintaining better relationships with key suppliers, and regularly assessing the vulnerabilities in your supply chain.
A key part of managing risk in retail is managing finances effectively.
Manage financial risks such as cash flow fluctuations, currency exchange rate fluctuations, and credit risks. Maintain adequate cash reserves, hedge against currency risks when necessary, and assess the creditworthiness of customers.
New World Norm can ensure your security is watertight.
Whether you run a busy e-commerce business and need to protect your warehouse, or have a brick and mortar store, we introduce strategies that protect you from theft, vandalism and other security threats. A salient part of this is introducing the latest technology, from CCTV cameras and alarm systems to hiring security personnel.
We’ve been working with both global and local brands who need security risk management for over 30 years.
Protecting your customer data is vital.
When creating strategies to manage risk in retail, it’s crucial not to overlook the area of cybersecurity. Cybercriminals don’t discriminate, and they target businesses of all sizes. The impact of attacks can be particularly devastating on smaller businesses who don’t have the financial resources to recover.
We can help you introduce measures to protect customer data from cybersecurity threats by implementing robust cybersecurity measures, complying with data protection regulations such as GDPR or CCPA, and regularly updating security protocols.
New World Norm can help you stay up to date with compliance management.
Our team is always well informed about the latest laws and regulations that affect retail operations. These include those related to labour laws, health and safety regulations, and consumer protection laws. As you’re probably aware, ensuring compliance with these regulations is important for avoiding legal and regulatory risks.
Employee training should also be part of risk management for the retail industry.
We can help you provide comprehensive training to employees on risk management procedures, security protocols, and compliance requirements. Empower employees to identify and report potential risks.
It’s also vital to continuously monitor and review your strategies.
New World Norm is always available to monitor and review your risk management strategies to ensure their effectiveness. Our specialists can regularly reassess risks and adjust strategies accordingly to adapt to changing circumstances.
By following these steps and implementing a comprehensive risk management plan, retail businesses can effectively identify, assess, and mitigate risks to safeguard their operations and enhance their resilience.
Our team has the honesty and integrity to support your key decision makers as effectively as possible.
If you want to know more about managing risk in retail, don’t hesitate to contact our friendly team for more information.
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