Most people believe that shopping online is easy and convenient. But most also agree that the one of the biggest issues in online shopping is the inability to touch and feel the product. As a result, items “not as expected” cause online return percentages to be high. And everyone knows Read More
Retail can be generally defined as the sale of goods and services from companies directly to customers. Traditionally, a retailer will buy goods or products in large quantities from manufacturers, either directly from the manufacturer or indirectly through a wholesaler. These goods and services are then sold individually or in small quantities to the public, often in a store or similar center of business.
The retail store is the outlet by which products are offered to the consumer, allowing a means to offer products in a way that will maximize market availability while providing the consumer the greatest opportunity for value, variety and choice. Through the evolution of retailing, the concept of the store has progressed beyond the walls of a brick-and-mortar operation and into the realm of the Internet, with the emergence of e-commerce as an essential aspect of many retail operations.
Retail is a business, and the aim of a business is to make money and turn a profit. Yet the process is more complicated than simply buying a building, filling it with merchandise, putting in a register and hoping for sales. Upon looking at the retail industry from a global perspective, we must consider the elements that make a retail business successful and profitable:
- We have to establish an identity that will attract our core customers. Establishing our identity sets the tone for everything that follows.
- We want to provide a quality product at an attractive price. The basic principles of supply and demand: Provide a product that we know people will want to buy, and offer it at a price that we know they will pay.
- We need to display our product in a way that makes it desirable to purchase. This concept must reach beyond our visual display and extend to the appearance and efficiency of the store or site.
- Our entire approach to the business should have our customers in mind. We should take all necessary steps to make our customers feel that they are important, that we will take care of them, that we value their opinions and their business, and that we want them to return and offer us their future business.
- We should provide an environment where our customer feels welcome, comfortable, confident, safe and secure. Our business should provide an atmosphere where our customer wants to shop, and should reflect a culture that best fits the core customer.
The most successful retail operations apply these simple but critical concepts as essential aspects of their core business. Retail is a dynamic business, but it can also be a delicate business. Many retail operations that falter or fail do so because they have in some way lost sight of the core business model. Clear vision must permeate every aspect and every department within the organization in order for it to succeed.
Sales drive the retail industry. When we look to measure the overall success of the business, we look to sales first. Understanding this, it should come as no surprise that brand objectives, planning, and ideals are built around the concept of sales—whether via e-commerce channels or in a brick-and-mortar store. Yet while sales may provide the barometer for profits, it is ultimately profit that will determine the success or failure of a retail business.
Profit margins are precisely where loss prevention departments have the greatest opportunity to make an impact on the success of the business. Retail shrink is in fact lost profits. Successful loss prevention planning thus looks to maximize profits by limiting shrink and improving efficiencies while enhancing the impact on sales.
It is through the understanding of the fundamental concepts and operations of the retail industry that we develop strong and productive business partnerships. But understanding alone isn’t enough. There also must be an acceptance of these concepts, and that acceptance must be embedded in everything that we do and every decision that we make as part of the business.
High turnover, including voluntary separations, has always been an issue in retail, and recent retail industry trends show turnover increased last year. A Korn Ferry Hay Group survey of top retailers found that hourly store workers had a 65 percent turnover rate in 2016, up from 57 percent in 2015. Read More
While formal industry penetration data on retail traffic counters are hard to come by, a quick stroll through any mall will reveal that more major retailers track traffic today than those who do not. Part of the reason that retail traffic counting is becoming so ubiquitous is because the insights Read More
A simple Google search for the term “cashless society” will come up with quite a few results, which might give the impression that we are on the cusp of some sort of global megatrend regarding retail cash management—one wherein cash and currency will become obsolete. This is likely to occur Read More
By any measure, empirical and anecdotal, the number of people visiting retail stores is down. There are plenty of theories about why: it’s the mass movement of shoppers to online; it’s changing consumer trends; it’s the weather; it’s those pesky, hard-to-figure-out millennials who would rather hunt for the nearest craft Read More
As online-only retailers continue to see expanded success, traditional brick-and-mortar stores must turn to new strategies to keep up with customer demand. Today’s retail environment demands that the customer shopping journey be a seamless one as it transitions from a physical store to a smartphone app to an interactive catalog (or Read More
A few weeks ago, I asked the question “Is It High Noon in the Retail Industry?” Profits are shaky; stores are closing. Some of the biggest names in the history of US retailing are struggling to stay alive. Well, the news isn’t getting any better, at least for department stores. Read More
Every retailer’s dream is to grow and flourish while maintaining their initial character and a “small-store” feel. But as retailers grow, maintaining that close customer connection, even in a specialty store, can be difficult. Topher Mallory, CEO of US retail brand Mexicali Blues, understands the importance of balancing shifting customer Read More
In the beginning, there was the cellular phone. Then arose a new kind of phone, from whence sprang generation upon furious generation of increasingly intelligent smartphones. Today, we are beset by a menagerie of portable devices, their displays ranging in length from thumb to forearm, but, crucially, each embedded with Read More
As you read this you may be feeling pretty secure in your job, but beware—it might all change tomorrow. Retail mergers and acquisitions have been known to leave behind “a string of security executive bodies,” according to security job placement specialist Jerry Brennan.
The latest deals in the works? Walgreens is Read More