Retail industry insights
Retail means sale of goods and services directly to consumers through store or over the internet or even through mobile apps. It is a crucial sector of the economy as it influences employment and creates jobs, popularises employment besides encouraging the market place consumption.
Shifts in Consumer Behavior
Online Shopping Trends
With the assistance of the e-commerce platforms, the shoppers and their shopping experience has altered. Today’s customers, because of the internet and its conveniences of shopping online for various products to compare their prices can shop from the comforts of their homes.
Importance of Physical Stores
Having realized that the sales have greatly shifted to the online platform, the physical stores are still relevant in the retail industry. Consumers, to this day, go for shopping physically through a store where they get to touch, be assisted by an attendant and get a quick satisfaction.
Some of the problems currently being encountered by the physical store owners are as follows;
The competition from e-commerce Giants 5. Political and legal issues which may be a threat to the company
Traditional retailers are under significant pressure by online retail giants such as Amazon and eBay, who offer customers a range of products at relatively cheap rates and who offer fast and efficient delivery services. This has led to a reduced level of usage by customers and shop visits and/or sales for conventional retail stores.
High Operating Costs
Physical locations are an expensive aspect to run, including rent, electricity, and employees’ wages. To the small and independent retailers, these costs lower the margins and slow the business development.
Evolving Consumer Preferences
Previously consumer preferences are always dynamic due to change in life style, demography and technology. Consumer channels have to shift their strategies and portray quick responsiveness to the new trends in the market.
Understanding Omnichannel Retailing
Definition and Importance
It is a strategy that combines a number of selling points in the physical world with web, thereby ensuring that consumers have an effective shopping experience. As customers are offered several alternatives on how they can be attended to their needs depending on the channel they prefer, satisfaction and hence loyalty is achieved among retailers.
Blending of the Technology and the Traditional Techniques
Omnichannel retailers who are the most successful work to unify offline and online stores with the help of technology. It enables the customer to search for the product, buy the product while at the same time allowing them to access other related services such as click and collect and same day delivery.
Strategies for Brick-and-Mortar Retailers to Adapt
Enhancing In-Store Experience
In regards to established online shops, B&M stores should differentiate themselves with superior in-store purely and in-store environment. This includes designing a welcoming stores environment, attending to customers on a one on one basis, and organizing such things as classes/lectures in order to capture the attention of the customers.
Leveraging Technology
A role of technology in the modern retailing cannot be overemphasized, through the use of information systems, retailers are able to carry out their activities with efficiency, extract usable information from the data amassed and enhance their customers’ touches points. The new technologies such as mobile POS systems, inventory management application and augmented reality could also help with enhancing efficiency and sales.
Implementing Click-and-Collect Services
In click-and-collect, customers are offered a chance to order through the Internet to have the order ready for collection, at any agreed time. This conviviality benefit is good for the clients who prefer to gain goods in the automatically driven automobile while escalating the physical stores sales.
Personalization and Customer Engagement
The best way to create customer loyalty, to create long term customers is by segmenting customers and personalizing them. This way, using customer data, retailers are able to segment their clients and advice them on products that meet their needs and be able to offer them promotions that they would be most willing to accept.
Cases of Omnichannel Integration
Most retailers have scaled Omnichannel approaches to improve their shopping facilities and boost their sales. Nike, Starbucks, Walmart and other companies are constantly improving their omnichannel capability with necessary technologies and digital technology to betters their positions in the market and to meet the increased expectations of the customers.
Where retail store formats sense the growing threat e-commerce platforms such as Amazon, what strategies can it adopt?
Traditional retailers can therefore distinguish themselves by creating the kind of customer experience and customized services that are not easily possible in the online environment.
With respects to omni-channel retaling, what specific role does technology serve?
The offline and online are bridged by technology and this will enhance the making of informed decisions and also enhance the engagement of the existing and potential customers through personalization and advertising.
In other words, are small-scale retailers capable of undertaking omnichannel investment?
Small-scale retailers should make use of cheap technological tools and strengthen cooperation to create Omnichannel strategies referring to the client-centered approach and an efficient distribution of resources to compete successfully in the marker.