The number of high street retailers that are shutting their doors for the last time is continuing to rise. In 2018, a record 5,883 stores shut, and with only 3,372 stores opening, a net loss of 2,481 occurred, an increase of 40% over the 2017 figures. The reasons behind these alarming mass closures include rising business rates and the steady decline of the number of shoppers who hit the high street as consumers to online shopping.
So how can you keep your business afloat in the competitive marketplace? While many people do shop online, many people are still loyal to shopping in person. Are you making the most of your retail space? Every aspect of your store needs to be geared towards sales and encouraging the consumer to buy from you.
- Streamline operations
In the last decade retail has been transformed by technology, and not just adversely. A good Point of Sale (POS) system not only provides you with accurate accounts but it can perform tasks such as order and inventory management, provide product warranty information and calculate customer loyalty rewards – all streamlining your retail operations. As a minimum you will need a computer, thermal receipt printer and a monitor, but in exchange you will be running a much tighter ship and be able to make informed business decisions at the click of a button.
- Floorplan
When was the last time that you invested time in reviewing your store’s layout? Your floor plan is the most influential aspect of your store’s interior and it plays a critical role in store flow and traffic.
There are many factors to consider when deciding which floor plan will suit your business, but you really need to understand how your customers behave. Are they in your store and browsing products, or do they tend to know exactly what they want and are shopping for convenience? Are they looking for efficiency, or are they likely to identify new products on their visit? Is self-service an option, or do you need staff on hand to serve? Understanding your customer’s behaviours will help decide which floor plan is best for your outlet.
- Cross merchandise
Of course, within your retail store, you will group together similar products, but are you cross-merchandising products on the same display? Cross-merchandising is a great way to sell customers different items that complement the item that they are looking at and have a logical connection to them. For example, a customer who wishes to buy a dress may also like a handbag or a pair of shoes. Think outside of the box and view your products from the perspective of your target customer.
The British Retail Consortium has revealed that retail sales across the board for May 2019, including online shopping, has fallen by 2.7% from sales last year. This is not only putting pressure on individual retailers, but the economy as a whole with further job losses and store closures being expected. To survive in the retail world, you need to be innovative, creative, digitally aware, but also resilient.