7 Ways Retailers Can Stay Off the Store Closure List
In April, Swiss brokerage firm Credit Suisse released a report that sent shock waves through the retail universe. It predicted that more than 8600 brick and mortar stores could shutter before the end of 2017. That would make it the worst year on record for store closures. It’s the stuff of nightmares for retailers.
Whether or not you believe the Credit Suisse analysts are right, you can avoid being one of those stores — all it really takes is providing the experiences that today’s consumers demand. Movie theaters in the 1980s faced a similar environment when home video hit big. The industry feared that once people could rent and watch videos at home, nobody would pay to go to a theater and they would all go out of business.
Only that’s not quite what happened. Many did go out of business, just as many brick and mortar stores are likely to. But nimble theaters evolved and responded by providing new experiences that customers wanted and couldn’t replicate at home. That’s why going to a movie theater today is nothing like it was in 1981. If you want to stay off Credit Suisse’s list, you can’t have sticky floors, gum under your seats or burns in your film.
Here are some things you can do now that are the retail equivalent of adding digital surround sound, online seat reservation systems and digital projectors.
Integrate Ecommerce and POS inventory
Omnichannel shoppers see no difference between your ecommerce and POS offerings and neither should you. Make every store’s inventory visible to online shoppers so that you can take advantage of the “buy online, pick-up in store” model. Integrated ecommerce and POS inventory management systems show real-time availability so consumers do not face unexpected out-of-stocks at brick and mortar locations. If an item is not available at the customer’s selected store, provide fast and free transfer from another store.
Use brick and mortar stores as fulfillment centers
Every physical store should also double as a fulfillment center for web orders. This opens up every item in inventory to sales from any channel and reduces time in transit for ecommerce orders. Orders that are automatically routed to locations closest to customers can reach front doors faster than from a central warehouse, often overnight or within two days without incurring express shipping charges.
It’s official — mobile internet usage has surpassed desktop traffic. If your website does not display properly on mobile devices, you’re missing out on a huge number of consumers. But just displaying properly is no longer enough. Navigation, inventory visibility and checkout must all be optimized for mobile users. This has massive benefits for brick and mortar as well when customers on the go can locate items in your stores; they may even make purchases from inside a competitor’s location.
Automate ordering with vendors
The long-time promise of just in time inventory management finally eliminated worries about out-of-stocks. Set minimum and maximum thresholds for SKUs and let your retail management platform automatically order the right amount of inventory from suppliers at the exact right moment….