Traffic and conversion analytics focus on what happens before the transaction is recorded in your POS or CRM system…if one is ever recorded at all. That’s what makes traffic and conversion data especially useful. Together, they tell us about the sale we almost had. 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.
In the aftermath of the dot-com bubble in the early 2000s, online marketers realized they couldn’t merely focus on generating website traffic; rather they needed to focus on their customer conversion rate—getting more visitors to buy. The same is true in brick-and-mortar retailing. Read More
The future of shopping malls looks bleak in many ways. Could the “mall within a store” model be the right answer for today’s consumers? Read More
When I was growing up in retail, the word was that “department stores are dying. That was in the early 1980s. Then came the resurgence of Macy’s. Dead? Not so fast.
OK, it’s true that in 2018, traditional department stores may now be an endangered species, but it took forty years.
Over Read More
As loss prevention professionals in retail businesses that serve this demographic en masse (i.e. QSR, c-store, big box, etc.) know all too well, cash is still a prominent form of payment. Read More
It would appear that approximately 30 percent of our respondents are going to have to find another outlet to buy toys for the children (and adults) in their lives. 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
In last week’s most-read article, “What Happened to Toys “R” Us?,” we learned that the iconic toy megastore has announced that it plans to sell or close all 800 of its remaining US retail stores. For most of us, this was a store that we grew up with, spending birthdays, Read More
In last week’s LPM Insider Survey, we discussed the decision made by several retailers to restrict purchases of certain firearms and gun accessories, or simply no longer sell these items rather than waiting for legislators to make up their minds on what should be done. Others have raised age restrictions Read More