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June 15, 2025 13 mins

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Sue and Simon explore key retail trends reshaping operations: loyalty-based deep discounts, data-driven opening hours optimization, and the challenges of tech fragmentation for managers. Each trend reveals how retailers are balancing cost pressures with customer experience in an increasingly complex operational landscape. 

• Loyalty programs now offering "deep cuts" exclusively to members rather than broad price reductions
• Promotional displays featuring loyalty prices create inventory management challenges when offers end
• Data science and AI replacing gut-feel decisions about when to open and close
• Managers struggling with fragmented technology, often needing to access five different systems for daily KPIs

Join us for our 10th Productivity Forum on 11th September at Birmingham International Conference Centre. With over 150 registered attendees, innovation showcases, speakers, panels, and networking opportunities, it promises to be our biggest and best event yet.


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Episode Transcript

Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Welcome to the Productivity Podcast.
I am joined by probably ourmost frequent guest, susan.
Hi Susan.

Speaker 2 (00:07):
Hello.

Speaker 1 (00:09):
We've done the book.
So every chapter AI's had a goat reviewing it as well.
So you can listen to that inthe podcast and all the usual
places you get your podcastschapters one to 11, and then a
bit of a pre and a post review,the two notebook lm versions,
which give I a chance, ai achance, to read it and digest it
and summarize it.
So quite interesting.

(00:30):
But so you've been doing lotsof presentations back to clients
over the the last couple ofmonths and wanted to touch on
two or three key themes thatyou've been seeing.
So do you want to take usthrough?

Speaker 2 (00:43):
yes, it's from presentations and just being out
and about generally.
So I guess one thing I'venoticed is the difference.
It's a customer offerdifference where there's much
more of a shift to deep cutsbased on loyalty.

Speaker 1 (01:00):
So it's you know, you get next point deep cuts as in
price cuts, yeah um, so you knowwhether it's sainsbury's
tesco's.

Speaker 2 (01:10):
The co-ops are now doing it based on club card.
So rather than kind of a broadprice reductions for everybody,
if you're part of the loyalty itgets a kind of an enhanced
loyalty but silly question whoisn't part of the loyalty?

Speaker 1 (01:24):
because if I see something at six quid and it's
three quid next to offer or clubcard, I'm like not paying six
quid.
Does anybody pay full price?

Speaker 2 (01:33):
some will do and yeah I'm amazed by that.

Speaker 1 (01:37):
Well, I don't know logic of I get.
People might want to give data,which is ultimately what you
you're giving and your shoppinghabits and trends.

Speaker 2 (01:49):
But yeah, I'd be signing up all day long and I
guess that's the trade-offYou're selling your data for the
privilege of getting some lowerprices.
But I think it's interestingwhat it means in terms of
volumes.
So promotional workload, somounting work, mounting displays
.
But even dealing with thevolumes of stock as they come in

(02:10):
is making a difference.
So I think there must be somequite big shifts in volumes and
some of the lines that suddenlyhave a deep cut that people will
will buy but I suppose it justdawned on me in this
conversation now how does thatstack up from a?

Speaker 1 (02:24):
so I know the law about was now prices and stuff
has to be at a higher price fora certain amount of days across
a certain number of locations toestablish the price yes but is
this a not a way ofcircumventing, because I don't
think there's any laws about it,but is this a way of suggesting
that the cut is significant, asin the non-loyalty price I can

(02:47):
put up to a much higher rate,knowing that not many people are
going to buy it, and if they do, they're paying a massive
premium.
But show us being a loyalcustomer in the loyalty program.
It's a much deeper cut.
So they I'll make it up thelego lambs 20 quid by actually
price it 30 quid, but then saynet to price club card price,
co-op rewards price, so we don'talienate anybody.

(03:09):
Individually it's 12 quid, soit looks like I'm saving 18 quid
when it was maybe never 30 quidin a pre.
I don't know how they yeah.

Speaker 2 (03:20):
Yeah, I don't know, I would think you have the same
price establishing rules, but Idon't know, but you can
establish whatever price youwant, is my point.

Speaker 1 (03:28):
So you could just make it look more expensive, to
show a deeper cut.
You could.
The question is how real is it?

Speaker 2 (03:34):
yeah, from what I've seen some of the prices look you
know they are big cuts, sowhether they're, they appear to
be big cuts, whether in reallife they are.

Speaker 1 (03:45):
And so, if that's the case, then, and everybody's
gone down this trend, becausethere was a trend of price
matching Aldi and Lidl, whichpeople kind of still do, but on
less and less lines yeah, twoalarms.
Why haven't Aldi and Lidl doneit?

Speaker 2 (03:58):
They don't have the loyalty schemes, the same way do
they.

Speaker 1 (04:01):
So is the future, then, that the next generation
of yeah, I guess there's alwaystrends, isn't there?

Speaker 2 (04:13):
and things swing around and move and there's
people kind of when it's, whenit's a differential, and then
once everybody starts doing it,then the innovators move on to
something different or go backto the future yes, so this is
just something that I've seen.
I think it's quite a markedshift from where it was even
kind of 12, 18 months ago okay,so loyalty to drive atv, so sell

(04:35):
more to the same people.

Speaker 1 (04:36):
That might be a bit tricky because actually you're
lowering your price to thosepeople so you could impact your
atv negatively if you're notcareful.

Speaker 2 (04:42):
So it's a volume play , right yeah, and that that's
the thing that I strikes me froman operational point of view.
You might have lines thatnormally you don't sell a huge
amount of that.
Suddenly you get a load of itfor a promotion.
So either you, if you don'tsell a huge amount of that,
suddenly you get a load of itfor a promotion.
So either you, if you don't puta load in, you run out because
it's a good offer.
But equally there's that riskthat you then end up left as an

(05:03):
operator with stock thatnormally you don't sell that
much of but you had to have aload off.
So I think it throws up someinteresting operational issues
beyond.
Kind of.
You know, if it's your normalhigh volume stuff that you, you
know, you put an offer on, itreally doesn't make that much
difference.
Something involves go up alittle bit, but you can always
manage it.
It's the fact if you've gotlines you don't sell a lot of,

(05:24):
you get a load of it.
Do you clear it?

Speaker 1 (05:26):
but I think an interesting thing again for
those listening have a look whenyou're shopping the supermarket
.
There's lots of fsd usefreestanding display unit
shippers, which clearly aresponsored by yeah the agio,
whoever it might be, they're thepeople that typically send all
the spirits in.
But on those shippers, in allof the brands, supermarkets the

(05:48):
main one they've got the loyaltyprice.
So unless you shift that whileit's on loyalty price, you've
got a problem because all of asudden you've got some of this
price, so they've kind of lockedthemselves into lots of stuff.
What I'm seeing is in all thesupermarkets there's lots of
those types of things aroundwhich maybe you've got too much
in or they've bought or got abetter rate buying, taking 10

(06:10):
shippers per live store,whatever that they're going to
struggle to shift.
Then you're left with adichotomy of got a better rate
buying, taking 10 shippers perlive store, whatever that
they're going to struggle toshift.
Then you're left with adichotomy of how do you keep
them on sale because you've gota different price point.

Speaker 2 (06:22):
It's always the operational challenges, isn't it
?
It's the operators that have tocope with the challenges that
the customer offer throws up.

Speaker 1 (06:34):
Agreed, so that's one of the key trends.
That's really interesting.
What else have you seen?

Speaker 2 (06:40):
another one is um people looking closer at opening
hours and I think it directlyrelates to costs.
So people are looking hardagain at cost bases, not
surprisingly, it's not.
I mean it's an ongoing thing,but we've had the um, the
national insurance, and then theum.
I mean it's an ongoing thingbut we've had the national
insurance and then the nationalliving wage and things
increasing again in April.
So there was the announcementthat Tesco were looking at Tesco

(07:02):
Express stores.
I think I notice it.
When I'm out and about on highstreets at the start and the end
of the day You'll see peoplethat aren't open.
They're opening slightly laterthan they were or finishing
slightly early.
I think some of them areprobably making a good call.
Others, you think there's ahell of a lot of people about
and you're not open yet.
Are you missing sales?

Speaker 1 (07:23):
And it's interesting because either competitors or
gut feel tend to drive what theopening hours are.
I think there's a lot more useof data, data science.
So the Solve by AI guys havebeen on before.
They're doing loads of neatwork in using historic stuff and
future stuff to look at openinghours and how you change those

(07:47):
by season by six months, threemonths, two months, whatever.
And you don't want to confusethe customer as well because
keep changing your opening hours.
The amount of studies we dowhere the store opening hours
are different than what Idisplayed on google as a start
point, you need to join that up.
But I think using data isinteresting, especially in a
world where you might be in yourlabor model on minimum manning.
So an investment of an hour isbig, but if you can prove the

(08:11):
return is great.
But also the saving saving ofan hour over a number of
locations over a period of timeis significant as well, because
you're not you're notnecessarily changing the volume
of deliveries or the other stuff.
You're condensing it into ashorter opening yeah time and
it's a physical saving.
Clearly, other areas you mighthave to redeploy the hours.
So there's loads of stuff tothink about.

(08:31):
But it's interesting thatpeople are starting to put data,
data science, ai, whicheveralgorithms you may use or
company you partner with the usearound it, because in my, in my
previous lives, there's notbeen much, much around it other
than competitors opening we needto match it, competitors close
we need to do somethingdifferent, or we think it's

(08:53):
busier on a sunday evening solet's stay open an hour later
and then nobody ever reviews it.
Yeah opening hours.
Interesting lots to go at yeahwhat else is on the list?

Speaker 2 (09:07):
um.
Third one I'm seeing we'reobviously seeing lots more tech
going into operations, wherethat's you know all sorts of
things from managing you knowrotors and payroll and all those
sorts of things and time andattendance.
There's a lot of moreoperational things.
So, whether that's systems thatyou know do automatic
temperature checks on yourfridges and you know, you name
it.
There's a lot of moreoperational things.
So whether that's systems thatdo automatic temperature checks
on your fridges and you name it,there's a way to digitize it.

(09:30):
So all the things that werepaper and checklists are
digitized.
And actually what we're seeingis a situation where managers,
between all that operationalstuff and then potentially
different KPIs coming from thosesystems, unless the
organization has got a smart wayof pulling that all together,
we've seen managers having tospend quite a bit of time
hopping between differentsystems.

(09:51):
So the ideal would be it allcomes to a dashboard.
You use single sign-on,whatever, so that people can
move smoothly between them.
But that isn't always the caseand we see in places where you
know a manager might we're inone place at the moment where,
just to get the generalperformance KPIs that they look
at every day, different, fivedifferent systems yeah, yeah.

Speaker 1 (10:14):
And then again there's loads of partners we've
talked about before Quarso,workjam that bring all that
together for various differentpeople.
So the tech's out there, yeah,and again in a world where
clearly there's been some reallyhorrible things happen to some
big organizations around theircybersecurity, I understand that
implementing new tech might besomething that's not
particularly high on the agendaor will take longer because of

(10:36):
the due diligence that's goingto go into it or the more due
diligence checking that's goingto go into it diligence checking
that's going to go into it, butit's coming and will need to be
done based on the costpressures that people are facing
now and will face in the futureas other costs go up.
You know we're six months awayfrom the next round of national

(10:57):
living wage being announced, sothere's always something coming
yeah there's always somethingcoming and it's interesting.

Speaker 2 (11:03):
I mean I think I think back to my time in
customer experience.
A big part of that was having areally useful interface that
users could get the informationthat they wanted.
And I guess you know whenyou're one business you think of
how do you use my one piece ofkit, whereas actually if you're
a manager in an operation that'slooking at operations across

(11:25):
the piece, you don't just wantone useful interface for one
thing, you want to know actuallyhow do I get the best across
all these 10 different thingsthat I've got to look at for
different aspects of my business.
So I think it's going to be aninteresting challenge agreed.

Speaker 1 (11:40):
So shameless plug.
To finish, then, our 10thproductivity forum is on the
11th of September this year atthe Birmingham International
Conference Centre.
We are going to have to closeregistration very shortly, at
the time of recording, becausewe're kind of at capacity, so
way over 100 people have alreadyregistered.
We've got innovation lines thisyear where we've got some

(12:02):
really cool tech to show you,some great people to speak to
that can help solve some of thereal business challenges that we
see out there.
So something even more excitingthan listening to me and Sue on
stage.
Maybe that's exciting, maybethat's not.
We've got some great speakerslined up.
We've got some great panels,some real case studies and real
life stories and, as ever, theability to network, to ask

(12:28):
questions, to meet like-mindedindividuals from your industry
and, I think, even moreimportantly now, from other
industries that you can learnfrom that.
Maybe you can bring somethingin that they do they've not
thought about.
So we're busy planning.
Ten years in, there's been somegood ones.
Hopefully this will be the best.
Are you looking forward to itsoon?

Speaker 2 (12:48):
Yeah, I like the fact that every year I think they do
get better and we get more andmore people at each one and you
know, when you see the qualityof the conversations that people
have, the networks that peoplebuild, which is so useful when
you you know when you're in thatdoorway you've got to deal with
multiple things to know otherpeople that have perhaps been
there, done it thinking the sameway it's.
I found it a really interestingday yeah, I look forward to it.

Speaker 1 (13:09):
Never have enough time to speak to people, so I'll
apologize in advance.
Always feel absolutely washedout by the end of it, but proud
of how it's grown over the years.
So biggest and best yet is isthe aspiration.
I'm sure those that attend willtell us, um, if we manage to
achieve that.
So thanks for listening andwe'll be back soon bye.
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