Rethinking Retail: What If We Challenged Everything?

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Welcome to the Deep Dive.
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We're here to unpack complex ideas, find those golden nuggets of insight you can actually use.
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Today we're plunging headfirst into the well, the dynamic and often surprising world of retail productivity.
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We've got this fantastic document from Rethink Productivity.
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It dares us really to ask some big questions, questions about what's really costing businesses money and what retail might look like if we just tossed out some old assumptions.
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Our mission help you understand the true costs, yes, but also the incredible hidden opportunities just waiting in modern retail.
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And to kind of set the scene.
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The source gives us this really powerful image.
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It's just a lonely sorry this item is out of stock.
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Sign on an empty shelf A stark reminder, isn't it?
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Both a problem and a massive opportunity.
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So let's dive right in.
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The document kicks off with a pretty stark declaration.
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It tells us up front all the easy stuff is done and maybe more daunting Costs will continue to rise.
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Hi Now, that sounds well a bit grim at first, doesn't it?
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But really it's a powerful call to action for businesses.
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Rethink everything.
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It absolutely is.
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And what's truly fascinating here, I think, is that the focus isn't just on, you know, blanket cost cutting that often feels like a blunt instrument.
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Instead, it's about genuinely understanding every single process and its precise financial impact.
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The document stresses the critical need to and I quote, understand how much it costs to run the business.
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So this means moving beyond just those high-level numbers and really digging into the nitty-gritty of every operation, Uncover its true financial weight.
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That makes perfect sense.
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Yeah, if the easy cuts are gone, you have to get well forensic about it.
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So where does this source suggest retailers look next For those significant opportunities?
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It points directly to stock process management, urging a much deeper dive into the true cost of these seemingly routine operations.
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A source provocatively suggests that technology should drive the process.
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Remove human decisions options where possible.
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This forces us to understand the entire process and its cost from end to end.
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Think about it how much does it really cost to replenish just one item, and how many times does it get handled?
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You know what's the cutoff point where a replenishment actually becomes unprofitable.
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Wow, that's incredibly granular.
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And it goes even further, doesn't it Asking if a store buyer should be directly responsible for shrink and waste, or whether existing store layouts are truly optimal.
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You know, from stock storage, front end collection points, all of it.
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It challenges assumptions we've probably held for decades.
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Precisely, and this is where modern technology isn't just a nice to have anymore.
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It's fundamental, it's an enabler.
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The source highlights tools like computer vision focal systems using cameras basically to monitor shelves, spot gaps, misplace items all in real time.
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It also mentions ESL plus pick-to-light systems you know where lights, show staff exactly where to pick items speeds things up enormously.
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And, of course, things like QR codes and NFC for a quick data capture, tracking and stuff we see more and more.
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But if we connect this to the bigger picture, these aren't just trendy gadgets, right?
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They're vital tools, Gathering that detailed data, automating processes and ultimately revealing those hidden costs and inefficiencies that well, manual processes often hide.
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It really sounds like a move towards like radical transparency in how things run.
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The document also touches on the human element, asking if the time a task is done matters.
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You know time of day or how close to the end of a shift does that impact pace, efficiency?
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And it raises this intriguing link between colleague tenure, staff turnover and overall productivity Interesting.
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Okay, let's shift gears a bit.
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Talk about the retail front end, because here's where it gets really interesting.
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I think the front end it's just not about traditional tills anymore, is it?
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The source outline is a massive opportunity for holistic front end change.
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It's like a complete reimagining of how customers interact with the store.
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Oh, definitely, we're certainly seeing that accelerating trend of increasing self-scan and self-pay transactions.
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It's everywhere, which naturally leads to fewer colleagues at tills.
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That's the obvious consequence.
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But, as you say, this isn't simply about automation, it's a complete redefinition of the front end's role.
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It now has to seamlessly handle, you know, increasing click and collect and the third party parcel volumes, huge growth there all while still needing to manage refunds, queries, the complex stuff, the human centric tasks.
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Yeah, what stands out to me here are some of the truly creative, almost futuristic ideas.
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Like the source suggests selling stock that must be behind a screen or to fill empty boxes vending it's like could you vend electronics or fill a decorative box with a surprise item Wild and using AI to offer services that require a person lottery, age, approval, et cetera.
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Basically, automating tasks that currently tie up a human.
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It also mentions open banking.
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That's a fascinating integration, potentially allowing seamless direct payments, maybe personalized offers without card fees.
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Mm-hmm these ideas.
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They're exciting for sure, but they highlight a fundamental challenge.
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The source points out.
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Many businesses are quote struggling to optimize for now, with flexibility for future change.
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It's a tricky balancing act, isn't it?
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You need to solve today's problems efficiently, yes, but also build systems agile enough for tomorrow's unknowns.
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Right.
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So with all these immediate challenges, these tech shifts, what does this mean for how we fundamentally operate a retail business?
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The document then shifts into some really provocative creative thinking.
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What would happen if scenarios these are designed, I think, just to push boundaries challenge every sacred cow in retail?
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Okay, just imagine this what if there wasn't a store manager in every store?
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Or what if physical offices were closed, except, you know, for interviews and disciplinaries?
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That's a massive structural shift.
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Absolutely massive and building on that, the source explores potential for really radical flexibility in staffing.
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How about colleagues worked across multiple stores and bid on local shifts?
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That could be transformative for employees and the business.
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And then there are the operational what-ifs.
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These really make you stop and think.
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What if field visits were conducted 50% of the time via technology, remote visits or get this head office couldn't contact BMO stores other than via one approved portal on selected days?
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Wow, what if you just stopped completing all the checklists Other than the legally required ones?
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Obviously, I can almost hear the collective sigh of relief from store managers right now.
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That's a great point and the source also challenges traditional inventory management in a big way.
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Imagine no stock counting, just none.
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That's radical.
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It's not just saving labor, is it?
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It implies this fundamental shift, maybe trusting real-time data or accepting some ambiguity.
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Huge implications for capital, for staff deployment, they suggest.
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Maybe senior leaders accepted.
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Stores shouldn't be 100% faced all the time, perfectly neat shelves, maybe not always necessary, or even you only face up for one hour per day.
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And how about only replenish when needed, not on a fixed schedule?
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Or even slow sellers, deliver to singles, then discontinue, stop wasting space.
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It also mentions displays where all original outers no singles, suggesting a shift away from perfectly arranged individual items.
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It almost sounds like you know lean manufacturing principles but applied to retail.
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Imagine a retail world where promotions were simpler and maybe less frequent, or perhaps more frequent but simpler, removing that operational complexity.
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Or if you could just send bulk overstock back to the DC instead of marking it down endlessly in store.
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What if deliveries were better?
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Forecasting of hot food to grow sales and zero waste, maybe using dynamic pricing for hot food based on demand.
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Time of day.
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And another truly groundbreaking idea in there, digital twins live for every store.
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This implies a complete virtual replica of each store, updated in real time.
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Imagine that.
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Remote monitoring, predictive analytics, simulating changes before they happen.
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Other ideas, some practical.
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Perhaps Induction was changes before they happen.
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Other ideas, some practical.
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Perhaps Induction was done in under two hours by AI.
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Super efficient onboarding, a self-service post office within a store, using spare space for the local produce providers.
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That's a fascinating way to generate revenue, engage locally, build community.
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And practical stuff like auto date checking for freshness, outsourcing, cash counting.
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The document even briefly mentions salary sacrifice here, hinting at new ways maybe to manage employee benefits and costs, offering more flexibility.
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But you know, every big idea has a flip side and the source wisely includes a section on unintended consequences, Things like loss prevention, work creation.
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It's a sobering reminder, isn't it?
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Solving one problem can sometimes create another.
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Exactly.
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And if we connect this to the bigger picture, yeah, many of these efficiency solutions.
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They could inadvertently create new problems.
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For example, if you reduce staffing or move to that no stock counting idea, maybe theft increases, which then requires more security measures.
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You know, like those images we see locked toothpaste items behind glass.
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Those are direct responses to loss prevention challenges, ones that might get worse with less human oversight.
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Right.
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It also brings up critical operational issues like how storage is often inefficient and in a poor spot, Suggesting solutions like maybe lockers, potentially in the car park for click and collect, Clever use of space.
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And the document highlights this potential paradox too While parcels drive footfall people coming in to collect things, the extra staff needed for those delivery tasks might be left not occupied later, once the rush is over, which leads to a really critical question what is the staffing model?
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With rise of SEO, self-checkout changes everything.
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It also points to the need for automating task planning and admin for stores.
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Think of the manager time that could free up.
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Yeah, absolutely, and a common pain point for retailers just having more stock than needed, which creates double triple handling, constantly moving stuff around.
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The clear goal here seems to be moved to closer to just in time for stock, mirroring those lean principles we mentioned.
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Exactly, and the document also stresses the importance of doing regular efficiency studies.
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You can't just implement and forget.
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You need to refresh ideas, validate process changes like what's the full impact of Uber Eats delivery, for example constantly reassess.
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It also emphasizes model integrity funding the output, basically making sure the financial and operational models justifying these changes are robust.
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Do they accurately reflect costs and benefits?
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Does the funding truly align with the output achieved?
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And this applies across the board, across other business units pharmacy, funeral travel, coffee shops a holistic view.
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This all ties beautifully into the productivity roadmap and the summary points, which really distill the essence.
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What stands out to me is the clear, actionable guidance.
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Things like manage change via the workload model to ensure fair funding, drive ATV, average transaction value always important and the absolutely critical principle get the right work done or the right role at the right cost.
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That last point is so key and maybe, just maybe, the most powerful insight from the entire document is its call to stop NVA processes pre-digitization NVA meaning non-value added.
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What it's saying is identify and eliminate any activity that doesn't add value before you even think about automating it.
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Don't just automate a bad process right.
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Get rid of the bad process first.
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It's a profoundly efficient way to approach change.
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What an incredible deep dive.
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We've covered so much, from the hidden costs of just putting stock on a shelf to imagining a world without store managers in every store.
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It's clear that moving beyond the easy stuff well, it requires truly creative thinking, doesn't it?
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A willingness to question every single assumption.
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It feels like a powerful roadmap for an industry that's just constantly in flux.
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Absolutely, and you know, knowledge is most valuable when it's understood and actually applied.
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This deep dive really shows us that the future of retail isn't just about throwing more technology at problems.
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It's about smarter processes, a deeper understanding of true costs true value.
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It really boils down to that Getting the right work done by the right role at the right cost.
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And what new, perhaps unforeseen, forms of value might they offer to customers?
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Something beyond just simple transactions and thinking about the people still working there.
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What entirely new skills might become absolutely essential for that human element in these evolving spaces?