The 5 S’s of Retail Operations (Systems, Standards, Stock, Space, Staff)

Systems

Retailers have some of the largest and most convoluted systems of any type of business. They are second only to government in size and complexity. The systems are large and small, new and old. Some operate from the cloud, others from IBM AS400s. And they are linked manually via developers who keep them talking to each other in scenes reminiscent of mechanics with oily rags in a factory from the industrial revolution of the late 1700s. There is currently no greater strategic, operational or financial challenge for large retailers than bringing all of their legacy systems up to the same level of integration and performance as their newer online retailing competitors who were all birthed on the internet Millennial retailers if you will.

Standards

This refers to ensuring that processes and procedures throughout the company are standard so that there is a common understanding. It also means that people can be moved around and be familiar with their environment.

Stock

Space

Staff