Small retailers ‘must innovate to survive’

The Knowledge Academy’s analysis of a Federation of Small Businesses survey has revealed that small retailers are having to innovate to survive.

The research showed that small retailers’ main reason to innovate is to achieve increased turnover and accelerate their growth prospects (48 per cent).

Thereafter, retailers engage in innovation activates because of the added range of goods and/or services (43 per cent) they can offer from doing so. Equally, for 43 per cent of retailers in their infancy, the primary driver to innovate is a desire to gain access to more customers.

Only one per cent of retailing enterprises innovate so they can develop useful technology and attain business rights, while four per cent do so to take advantage of any collaboration opportunities which may arise.

Three quarters of retail startups claim to be ‘very or slightly aware’ of their competitors innovation efforts, while 70 per cent stated they are willing to experiment and take risks when trying to refresh their products, services, processes or strategies with new ideas.

Joseph Scott, a spokesperson from the The Knowledge Academy, said that to stay ahead of the curve, firms need to make a consistent effort to assess and improve various aspects of their operations.

“Innovation enables careful problem solving and generates effective solutions as to how companies can establish a distinctive competitive advantage,” he added.

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