Economic recession may be a ripe time to discuss the doom and gloom but it is not to blame for retailers’ bankruptcy, at least not wholly. Instead of panicking and blindly cutting down on everything, retailers need to stay focused and agile to adapt.
Sometimes it is beneficial to go back to the basics of retailing. Retailers can either stock goods that have that irresistible “wow” factor or they can stock “great value” items to lure customers into buying those and even higher-priced items.
Another useful technique is to find out the unique traits of a retail business, whether they have to do with products, pricing, service or shop design, and start promoting them. Give consumers something to talk about, and who knows how many potential customers will come from that.
Also, once a customer walks through the door, retailers should make their best efforts to maximise sales potential from that person. A lot of factors contribute to this and businesses need to work out what is effective, from employees’ attitudes to their timing and the phrases that they use.
But where do retailers get all the inventory and customer data to provide such actionable insight? The answer is technology. To get back to basics and really focus on their core strengths, businesses should leverage their retail management system.
However, it cannot be stressed enough that it is not just about having the system. Retailers need to fully and properly use it to get the best understanding of their business and their customers. It is helpful to come up with a list of needs and the requirements in a retail system to meet those needs.
For instance, retailers need to prevent inventory shrinkage, especially during economic uncertainty. What can help retailers achieve that aim? Is it regular reports, strong security and audit features? If a business cannot figure these out themselves, they can work with their retail partners or trusted technology experts.
Take the time to work on the business instead of just in the business. Read more on how to effectively weather economic uncertainty from successful retailers in the eBook “Succeeding in the Retail Business during Economic Stress.”