/////////////////////////////////////////////////////////////////// INTELLIGENT VERTICAL: RETAIL
TRANSFORMING
FINANCIAL PLANNING
IN RETAIL
When it comes to developing relevant operational plans, Allan
Saffy, FP&A Executive at Decision Inc, says the finance teams
of South African retailers must be able to adjust for the unique
challenges of this environment whether it is mobile e-commerce
or real-time data analysis.
T
he growth of mobile requires an
effective view of multi-channel
financial reporting and planning.
Retailers still struggle to understand
the precise financial effect that such a
changing channel focus has already had,
and might have, on their business. It also
becomes difficult to quantify the financial
impact that e-channels may have on in-
store sales cannibalisation.
Now, thanks to the increasing availability
of real-time data analysis, imagine a world
where finance is not only able to report
on the current and historical return on
investment of each channel, but also on the
returns each are likely to deliver because
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of future financial plans as outlined in the
budget and forecasts.
Changing dynamics
Another indication of evolving market
conditions is the strategy behind store
development. A fundamental retail principle
is that store presence, coupled with
accessibility, positively impacts revenue.
However, the process of modelling and
planning new store viability is often a
cumbersome and time-intensive exercise.
Retailers are under pressure to manage
increased customer expectations around
service and product quality and availability.
Given how much choice they have in the
“
ANOTHER
INDICATION
OF EVOLVING
MARKET
CONDITIONS IS
THE STRATEGY
BEHIND STORE
DEVELOPMENT.
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