A beacon of hope in challenging times: all aboard for the retail sector's automation revolution

The retail sector stands at the cusp of a transformation. In an era where economic uncertainty reigns, consumer demand remains unpredictable, yet the expectation for personalised service is unwavering and intensifying.

Retailers are grappling with stubborn inflation, supply chain disruptions, and escalating costs, all of which are eroding already thin margins. These pressures are compounding the difficulties of operating in a high-growth, low-profit environment where cash flow management is a constant concern.

Amidst this turbulence, AI driven disruption is further complicating the landscape, leaving millions of businesses mired in the minutiae of daily operations. Research from Brightpearl by Sage reveals that the average retailer spends over 290 hours annually on tedious administrative tasks alone.

Yet, there is a beacon of hope. Retail leaders are increasingly turning to end-to-end retail automation as the solution to operational complexity.

The dawn of end-to-end retail automation

End-to-end automation isn't just a buzzword; it's a comprehensive approach that integrates technology across every facet of retail operations.

On the front end, this includes automating customer communications, sales processes, and marketing. On the back end, it encompasses supply chain management, inventory planning, financial tasks, and data analysis.

Automation has the potential to reshape the retail landscape, creating streamlined organisations where employees are empowered by technology rather than overwhelmed by it.

In the face of current challenges, experts agree that the retailers who thrive will be those who seize the transformative potential of automation and act swiftly to integrate it.

Reshaping retail: a new era of efficiency

“The rise of automation through AI will have a more significant impact on retail than other industries,” explains Christopher Schyma, Director of Retail at Sutherland.

Schyma points to the evolving retail environment, where today’s customers demand digital-first experiences that meet their needs and exceed expectations across multiple touchpoints, all with maximum convenience.

For e-commerce brands, the allure of automation is clear: significant time savings. According to research from the McKinsey Global Institute, automation can reduce the hours required to run a typical retail store by up to 65%.

Furthermore, McKinsey's research indicates that about half of all retail activities can be automated with existing, scalable technology.

Brightpearl's findings support this, showing that retail businesses using automation can save around 296 hours annually. AYBL, a £30 million athleisure brand, is a prime example of this.

Reiss Edgerton, Founder and CEO at AYBL, explains: “Automation technologies handle so much.”

“We use Inventory Planner for automatic replenishment, so I can be quite hands-off with merchandising and purchasing. It easily saves us 100 hours a month. That’s key for me – I don’t want to be bogged down by managing day-to-day tasks; I want to focus on the bigger picture.”

Edgerton touches on a critical issue for retailers: the need to alleviate the operational burden on business leaders and their teams.

The tyranny of manual tasks

Whether it’s managing spreadsheets, clearing out emails, updating databases, processing invoices, or handling customer support, the list of time-consuming tasks seems endless. For many, the burnout is real.

“Retail businesses across the UK are being suffocated by manual admin work, which is draining productivity, overwhelming staff, and stunting growth,” says Mark Hook, Product Marketing Director at Brightpearl.

Brightpearl’s report reveals the extent of this issue, with retailers spending an average of 5 hours and 42 minutes each week battling admin tasks. That’s nearly 300 hours a year spent on mundane activities like order processing, invoicing, and inventory management.

It's little wonder that 75% of retail employees feel overwhelmed by the volume of admin work, with many sacrificing their weekends to keep up. This is not sustainable.

The situation is particularly dire for fast-growing merchants who find their manual to-do list rapidly spiralling from manageable to overwhelming as their operations scale and become more complex.

When teams are exhausted, mistakes happen, customers are disappointed, and the business’s reputation - and profits - suffer. Overwhelmed leaders and their fatigued teams are less capable of confronting the current retail market’s challenges and more likely to succumb to its pressures.

Automation: the antidote to burnout

However, by embracing automation, retailers can avoid burnout and rejuvenate their businesses.

Employees freed from the drudgery of admin tasks become more productive, channelling their energy into more meaningful work. This shift not only enhances job satisfaction but also boosts the bottom line.

As Liz Armbruester, EVP of Customer & Compliance Operations at Avalara, notes: “Over the past couple of years, we’ve seen business leaders shift from a growth-at-all-costs mindset to one that emphasises profitability and efficiency.”

“This new mindset has led to greater scrutiny on spending and accelerated the adoption of automation software. Automation can help virtually every arm of a business become more efficient.”

Automation: the secret to scaling

The transformative potential of automation is not an exaggeration. In an intensely competitive market, automation can be the key to scaling by enabling retailers to focus on meeting consumer demands and delivering the service they crave without being bogged down by operational complexity.

Hook emphasises: “The best way to reduce both complexity and cost in this economic climate is to automate as much of your operation as possible.”

“Automation eliminates the need for human intervention on high volume, repetitive tasks, reducing labour costs, minimising errors, and increasing the speed of your operation.”

While the prospect of widespread automation may provoke concern and resistance from some employees, it is more likely that automation will lead to the creation of new roles in the future.

In the meantime, it’s about evolving existing roles and freeing up staff to focus on more strategic, rewarding tasks that drive growth and profitability.

Understanding the practical benefits of automation - how it saves time, enhances productivity, and ultimately boosts profits - can be a powerful tool in overcoming resistance to these technologies.

Gaining the automation advantage

Take the case of Bond Touch, a brand known for its ‘emotional bracelets.’

After experiencing rapid growth, the company ran into issues with manual workflows and turned to Brightpearl for automation. The result? Automation saved the multi-channel merchant 480 hours a month and freed the team from monotonous duties.

Jorge Henriques, COO at Bond Touch, shares, “Our aim was to stop our team from doing almost all manual tasks, and we were able to achieve that very quickly. Brightpearl is a very intuitive, hands-off solution – we now only need one, or possibly two, people to manage hundreds of thousands of orders.”

“We can easily create custom automation rules to meet our needs – for instance, if one warehouse runs out of stock, a rule kicks in to automatically route orders to a second warehouse option.”

As retail experts and successful brands like AYBL and Bond Touch have demonstrated, automation is a lifeline for retailers during challenging times.

By streamlining operations, reducing manual workload, and increasing efficiency, automation can help retailers not just survive but thrive. Embracing this technology is essential for meeting modern consumer expectations and staying competitive.

While it’s easy to be consumed by the daily fires of running a modern retail business, it’s crucial to recognise that just over the horizon lies a new future where tedious tasks like data entry, inventory management, and invoice processing are seamlessly handled by cutting-edge technology, freeing your team to focus on driving innovation, enhancing customer experiences, and growing your business.

It’s a place where you can scale your business fearlessly and look forward to a prosperous, innovative future. But to reach this destination, you must board the automation train - and the time to act is now.

Looking for real-world automation inspiration? Discover how top retailers are transforming their operations with automation in this on-demand webinar.