Check your sources this back-to-school season

As parents search for the perfect pens or trendy new backpacks, they have more choices than ever before — and not just about which products to buy. 

They also have more options about where, when and how to buy than ever before. Still, the majority of shoppers choose to head into brick-and-mortar stores, with eMarketer data indicating 87% of retail sales took place in physical store locations in 2024. 

That means the bulk of shoppers are looking for an experience other options can’t offer: a memory made in addition to an errand completed. Retailers certainly recognize this as a valuable opportunity to affirm trust and loyalty, especially in the two weeks prior to the academic year’s kickoff — expected to be the busiest of the summer according to Sensormatic Solutions findings. 

With the back-to-school rush fast approaching and total sales expected to outperform last year’s highs, they’re working hard to ensure that every element of their in-store operations is ready to deliver the experiences parents and kids are looking for. 

But, as leaders finalize their plans to accommodate the influx of students, teachers and parents they’ll welcome into their stores this summer, they may need to start thinking about their operations on a different scale than in years past. 

Hidden in plain sight

Amid ongoing market volatility and supply chain uncertainty, consumer concerns about product availability have again risen to top of mind. A recent consumer sentiment report from HappyOrNot found that 20% of customer experience challenges are now related to product availability. 

And that’s during an average shopping season, without spiking crowds who are all on the lookout for similar items and on a tight deadline. As we head into the often-overwhelming back-to-school season, those concerns are likely to grow even more prevalent.

Now, balancing supply with demand is a foundational task of retail management; it’s the crux of the business. It's also one of the most persistent operational challenges for leaders, with 60% of retailers citing inventory management in their top five most difficult obstacles in 2024—up from 50% the previous year. This is indicative of the need for a new approach to the task as well as a reflection of the changes the industry has undergone in the past few years. 

Increased reliance on in-store analytics has driven awareness about the ways that upstream events—issues at the manufacturer, in transit and in storage—affect inventory-related customer experience misses and retail shrink. However, in-store data cannot illustrate where, how and when those issues occur—because they don’t happen in the store.

More information, better operations

To connect the dots between behind-the-scenes and on-the-floor incidents, retailers will need to fill those gaps and connect the dots between behind-the-scenes problems and customer experience misses. 

Adding manufacturer, shipping and storage data into their systems can help illustrate how network performance impacts loyalty and satisfaction, allowing retailers to take advantage of previously hidden opportunities to:

• Avoid out-of-stocks. Visibility into not just current inventory but what’s on the way, its origin and arrival times helps keep shelves stocked when demand spikes.
• Align staffing to demand. Historical traffic trends, Power Hours, and back-to-school peak week predictions give retailers the ability to adjust staffing levels during busy shopping hours. This ensures associates are available when customers need them most, reducing pain points like long checkout lines and improving the overall shopping experience.
• Improve associate performance. With checkout lines a major concern for shoppers—and driver of abandoned carts — freeing up associates' time is critical during peak traffic hours. When employees know what’s in stock (and don’t have to spend time manually applying tags), they spend less time searching for products and can spend more time keeping wait times short and customers happy.
• Adjust to changes on the fly. Recalls, shipping delays and other external issues can quickly tarnish retailer reputations. With end-to-end inventory intelligence, retailers can anticipate these concerns and pivot before they impact customers.
• Balance promotions. A good deal can make a big difference for shoppers, and keeping prices competitive is sure to give retailers an edge come August. Source-to-store insights help illustrate and eliminate waste, giving retailers more flexibility to cut prices without cutting into revenue.

Luckily, many retailers have already invested in the basic infrastructure needed to incorporate supply chain data into their in-store ecosystems. They just need to expand the technology’s scope, applying collection tools earlier in their operations. 

For example, those already using RFID tags may want to explore the benefits of implementing a source-tagging program — which sees RFID and EAS tags applied at the point of manufacturing. This relatively simple change allows retailers to begin capturing supply chain data without significant additional investments in net-new systems or tools.

Make the grade, today and tomorrow

As the back-to-school season approaches, retailers have a unique opportunity to not only meet the demands of consumers but create memorable in-store experiences that foster loyalty and trust at a pivotal moment. 

It's not just about capturing a share of growing back-to-school spending; it’s about reinforcing the joys of in-store shopping and building lasting relationships with customers during a time of uncertainty. Retailers that embrace these strategies early will find themselves better positioned this back-to-school shopping season—and have taken pivotal steps to solidify their foundation for whatever may come next.

Grant Gustafson is head of retail consulting and analytics at Sensormatic Solutions.